STRATEGIC BRAND MANAGEMENT

MODULE-2
CUSTOMER BASED BRAND
EQUITY
By,
MADHU BK

STRATEGIC BRAND MANAGEMENT

MODULE
-2
Customer Based Brand

Equity: Customer Based Brand

Equity-Meaning, Model of CBBE
Brand Equity: Meaning, Sources, Steps in Building Brands,
Brand building blocks-Resonance, Judgments, Feelings,
performance, imagery, salience-Brand Building Implications,
David Aakers Brand Equity Model.
Brand Identity & Positioning : Meaning of Brand identity,
Need for Identity &Positioning, Dimensions of brand identity,
Brand identity prism.
Brand positioning Meaning, Point of parity & Point of
difference, Positioning guidelines.
Brand Value: Definition, Core Brand values, Brand mantras,
Internal branding,

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

Customer-Based Brand
This
model introduced mainly to get answers for 2 questions.
Equity

1.What makes brand strong?

2.How do you build a strong brand?
This model incorporates theoretical advances & managerial
practices in understanding & influencing consumer behavior.
CBBE model provides a unique point of view as to what brand
equity is & how it should be built, measured & managed.
It is the power of a brand lies in what resides in the minds of
customers.

STRATEGIC BRAND MANAGEMENT

Customer-Based Brand Equity

Model
Customer-Based
Brand Equity defined as the differential

effect that brand knowledge has on consumer response to

the marketing of that brand.
A brand has positive CBBE when consumer reacts more
favorably to a product & the way it is marketed when the
brand is identified.
This approaches brand equity from the perspective of the
consumer, whether the consumer is an individual or an
organization.
Determinants of Customer-Based Brand Equity:
Equity
1. Customer is aware of and familiar with the brand
2. Customer holds some strong, favorable, and unique brand
associations in memory

The Concept of Customer-Based Brand

Equity

STRATEGIC BRAND MANAGEMENT

Customer-based brand equity

Differential effect: brand equity arises form differences in
consumer
response, if no differences occur, then the
brand-name product can
essentially be classified as a
commodity or a generic version of the product.
Customer brand knowledge: these differences in response
are a result of consumers knowledge about the brands.
Customer response to brand marketing: customers
differential response which make up brand equity are
reflected in perception preferences, and behavior related
to all aspects of brand marketing, including their choice of
a brand, recall of copy points form an ad, response to a
sale promotion and evaluation of a proposed brand
extension.

STRATEGIC BRAND MANAGEMENT

Customer-Based Brand Equity as a

Bridge

Customer-based brand equity represents the added

value endowed to a product as a result of past
investments in the marketing of a brand.
Customer-based brand equity provides direction and
focus to future marketing activities.
According to this model consumer knowledge drives
the differences that manifest themselves in terms of
brand equity.
Brand equity provides marketers with a vital
strategic bridge from their past to their future.

STRATEGIC BRAND MANAGEMENT

Building Customer-Based Brand

Equity

Brand knowledge structures depend on . . .

The initial choices for the brand elements.

The supporting marketing program and the
manner by which the brand is integrated into it.
Other associations indirectly transferred to the
brand by linking it to some other entities.
Building a strong brand involves a series of steps as
part of a branding ladder
A strong brand is also characterized by a logically
constructed set of brand building blocks.
Identifies areas of strength and weakness.
Provides guidance to marketing activities.

STRATEGIC BRAND MANAGEMENT

Benefits of Customer-Based Brand

Equity
Enjoy greater brand loyalty, usage, and
affinity.
Command larger price premiums.
Receive greater trade cooperation &
support.
Increase
marketing
communication
effectiveness
Yield licensing opportunities.
Support brand extensions.

STRATEGIC BRAND MANAGEMENT

Brand equity
A set of brand assets and liabilities linked to a
brand.
Its name and symbol, that add to or
subtract from the value provided by a
product or service to a firm and/or to that
firm` s customers. By: David Aaker.
Brand Equity the added values endowed to
product or service. .

STRATEGIC BRAND MANAGEMENT

STRATEGIC BRAND MANAGEMENT

The brand equity concept stresses the importance of the

brand in marketing strategies.
Brand equity is defined in terms of the marketing effects
uniquely attributable to the brand.
Brand equity relates to the fact that different outcomes result
in the marketing of a product or service because of its brand
name, as compared to if the same product or service did not
have that name.
It should reflect not only the capitalized value of the
incremental profits from the current use of the brand name but
also the value of its potential extensions to other products.

STRATEGIC BRAND MANAGEMENT

What is Brand Equity?

Perceived
Brand Quality

Brand
Associations
Personality
Benefits
Attitudes

Brand
Awareness
Brand Name
Symbols

Brand
Loyalty

Brand Equity

Provides Value to Customer

by Enhancing:

Other
Proprietary
Brand Assets
Patents
Trademarks
Channel relationships

Provides Value to Firm by Enhancing:

Efficiency and Effectiveness of Marketing Programs

Brand Loyalty
Interpretation/processing of information
Prices/margins
Confidence in the Purchase Decision
Brand extensions
Use Satisfaction
Trade Leverage
Competitive Advantage

STRATEGIC BRAND MANAGEMENT

Building Brand Equity

Getting awareness of the brand and the
meaning.
Making brand associations -- even the factory
location in Saturns case.
Building perceived quality
Loyalty in repurchase -- locking them in
Getting reseller support

STRATEGIC BRAND MANAGEMENT

How to achieve brand

equity
Skillful design and implementation
of marketing programs.
The capitalization
on
a well
thought-out positioning.
Strong brand leadership position
in the market place.

STRATEGIC BRAND MANAGEMENT

Brand equity

Brand Awareness
Brand Image / Brand salience
Awareness
Brand Experiences / Brand Users
Brand loyalty

STRATEGIC BRAND MANAGEMENT

Sources of Brand Equity

There are 2 sources of Brand equity.
1. Brand Awareness
2. Brand Image

STRATEGIC BRAND MANAGEMENT

1. Brand Awareness

Brand Awareness is the ability of a potential buyer to

recognize or recall that a brand is a member of a certain
product category.
It involves 2 concepts.
1. Brand Recognition
2. Brand Recall
How to Achieve Brand Awareness

Be different, memorable
Involve a slogan or jingle
Symbol exposure
Publicity
Event sponsorship

STRATEGIC BRAND MANAGEMENT

Establishing of Brand
Awareness

It is created by increasing the familiarity of

the brand through repeated exposure i.e.
the more a consumer experiences the brand
by seeing it
hearing it, thinking about it,
the more likely the brand become
registered in memory
Offer set of associations.

STRATEGIC BRAND MANAGEMENT

Advantages of Brand
Awareness
Learning
advantages: the first way that brand
awareness affects consumer decision making
is try influencing the formation of strength of
the brand associations that make up the brand
image.
Consideration: consumers think of consider
the brand whenever they are making a
purchase.
Choice: it can affect choices among brands.

STRATEGIC BRAND MANAGEMENT

2. Brand image

Brand image is a positive brand image is

created by marketing process that link strong,
favorable & unique associations to the brand
in memory.
Brand Association means A brand association
is anything "linked" in memory to a brand.
It involves 3 concepts:
1. Strength of brand association
2. Favorability of brand association
3. Uniqueness of brand association: it involves
Reputation, brand assets, loyalty, awareness.

STRATEGIC BRAND MANAGEMENT

Steps in brand building or

brand development
1. Ensure identification of the brand with
customers.
2. Firmly establish the totality of brand
meaning in the minds of customers.
3. Elicit the proper customer responses to
brand identification & brand meaning.
4. Convert brand response to create an
intense, active loyalty relationship B/W
customers to brand.

STRATEGIC BRAND MANAGEMENT

CUSTOMERBASEDBRANDEQUITYPYRAMIDor
BRANDBUILDINGBLOCKS

RESONANCE

JUDGMENTS

PERFORMANCE

FEELINGS

IMAGERY

SALIENCE

4.RELATIONSHIPS=
4.RELATIONSHIPS=
Whataboutyou&me?
Whataboutyou&me?

3.RESPONSE=
3.RESPONSE=
Whataboutyou?
Whataboutyou?

2.MEANING=
2.MEANING=
Whatareyou?
Whatareyou?

1.IDENTITY=
1.IDENTITY=

Whoareyou?
Whoareyou?

I-10
F-4

F-2

R-6

Feelings

5
R-

F-1

2
F-1

11
F-

R3

R-2

R-1

2
R-1

11
R-

Judgment

R-7

R-8

F3

I-3

R9

I-2

I-1

I-12

5
J-

J-6

J-7

J-8

1
I-1

I- 9
F9

F-6

F-7

F-8

5
F-

I-5

I- 6

I-7

I-8

R-10

J3

P3

J-2

J-1

2
J-1

11
J-

P-2

P-1

2
P-1

11
P-

STRATEGIC BRAND MANAGEMENT

J-

5
P-

P-6

P-7

P-8

I-4
0
F-1

P9

Imagery
P-4
0
J-1

P-10

Performance
J-4

Resonance
R-4

STRATEGIC BRAND MANAGEMENT

1.Performance Dimensions
1. It describes how well the product or service meets customers
more functional needs, how well does the brand rate on
objective assessments of quality ? To what extent does the
brand satisfy utilitarian and economic customer needs what in
the product or service.
2. Brand performance transcends the product s ingredients and
features to includes dimension that differentiate the brand
often the strongest brand positioning relies on performance
advantages of some kind and it is rare that a brand can
overcome sever performance deficiencies.
Primary characteristics & supplementary features
Product reliability, durability, and serviceability
Service effectiveness, efficiency, and empathy
Style and design
Price

STRATEGIC BRAND MANAGEMENT

2. Imagery Dimensions
Brand imagery refers to more intangible aspects of the brand
and consumers can form imagery association directly form
their own experience or indirectly through advertising or by
some other source of information such as word of mouth
User profiles
Demographic & psychographic characteristics
Actual or aspiration
Group perceptions -- popularity

Purchase & usage situations

Type of channel, specific stores, ease of purchase
Time (day, week, month, year, etc.), location, and context of usage

Personality & values

Sincerity, excitement, competence, & ruggedness

History, heritage, & experiences

Memories

STRATEGIC BRAND MANAGEMENT

3. Judgment Dimensions
Brand judgments are customers personal opinion about and
evaluation of the brand which consumers form by putting together
all the different brand performance an imagery associations.
4 types of judgments:
Brand quality
Value
Satisfaction
Brand credibility
Expertise
Trustworthiness
Likability
Brand consideration
Relevance
Brand superiority
Differentiation

STRATEGIC BRAND MANAGEMENT

4. Feelings Dimensions
Brand feeling are customer emotional response and
reactions to the brand, it also relate to the social currency
evoked by the brand, what feeling are evoked by the
marketing program for the brand or by other means???? How
does the brand affect customers feelings about themselves
& their relationships with others????
There are 6 important types of Brand Building Feelings:
Feelings
Warmth
Fun
Excitement
Security
Social approval
Self-respect

STRATEGIC BRAND MANAGEMENT

5.Resonance Dimensions
Brand resonance : the final step of the model focuses on the ultimate
relationship and level of identification that the customer has with the
brand it describe the nature of this relationship and the extent to which
customers feel that they are in sync with the brand
Behavioral loyalty
Frequency and amount of repeat purchases
Attitudinal attachment
Love brand (favorite possessions; a little pleasure)
Proud of brand
Sense of community
Kinship
Affiliation
Active engagement
Seek information
Join club
Visit web site, chat rooms

STRATEGIC BRAND MANAGEMENT

Salience Dimensions
Achieving the right brand identity means creating brand
salience with customers, brand salience measures
awareness of brand.
Depth of brand awareness
Ease of recognition & recall.
Strength & clarity of category membership.
Breadth of brand awareness
It measure the range of Purchase consideration and
usage situations in which the brand elements comes
to mind & depends to a large extent on the orgn of
brand and product knowledge in memory.
Consumption consideration.

STRATEGIC BRAND MANAGEMENT

Brand building implications

Customers own brands.

Dont take shortcuts with brands.
Brands should have a duality.
Brands should have richness.
Brand resonance provides important focus.

STRATEGIC BRAND MANAGEMENT

DAVID AAKERS BRAND EQUITY

1.
2.
3.
4.
5.

Aaker defines BE as a set of five categories of

brand assets & liabilities linked to a brand, its
name & symbol that add to or subtract from the
value provided by a product or service to a firm or
to that firms customers or both.
5 levels are as follows
Brand loyalty.
Brand Awareness
Perceived Quality
Brand Associations
Other proprietary Brand assets

STRATEGIC BRAND MANAGEMENT

Brand
Loyalty

Brand
Awareness

Brand
Equity

Perceived
Quality

Brand
Associations

Other
proprietary
Brand assets

STRATEGIC BRAND MANAGEMENT

Brand Identity & Positioning

Brand identity:
identity brand identity is a unique set of
brand associations that the brand strategist aspires
to create or maintain these associations represent
what the brand stands for & imply a promise to
customers from the organization members.
Brand Identity Should Help Establish A Relationship
Between The Brand & The Customer By Generating A
Value Proposition Involving Functional, Emotional, Or
Self-expressive Benefits.

STRATEGIC BRAND MANAGEMENT

BRAND IDENTITY
CONSISTS OF 12 DIMENSIONS OF BRAND
ORGANIZED
AROUND 4 PERSPECTIVES:
As a product: product scope, product attributes,
quality/value, uses, user, country of origin.
As an organization: organizational attributes, local vs. global
As a person: brand personality, brand-customer
relationships.
As a symbol: visual imagery/metaphors, heritage
CORE & EXTENDED IDENTITY:
Core identity: central timeless essence of the brand
remains constant as brand travels to new markets/products.
Extended identity: includes various brand identity elements,
organised into cohesive & meaningful groups.

STRATEGIC BRAND MANAGEMENT

KAPFERER represents brand identity

diagrammatically as a six-sided prism
Constructed Source/Sender
as shown below:
E
x
t
e
r
n
a
l
i
s
a
t
i
o
n

I
n
t
e
r
n
a
l
i
s
a
t
i
o
n
Constructed Receiver

STRATEGIC BRAND MANAGEMENT

Physique according to him is the basis of the brand.

Product features, symbols & attributes
E.G. the physique of
Philips is technology and
reliability while for the brand Tata it is trust
Personality is same as Aaker, it answers the question
what happens to this brand when it becomes a person?
Character & attitude
Culture symbolizes the organization, its country-of-origin
and the values it stands for. Set of Values
E.G. traditional brands like balsara, dabur and zandu.

STRATEGIC BRAND MANAGEMENT

Relationship is the handshake between consumer and the

organisation. Beliefs & association
E.G. the relationship with safola is safety.
Reflection is the consumers perception for what the brands
stands for. Customers view of the brand
E.G. cokes image more attract youth.
Self-image is what the consumer think of himself. Internal
mirror of customer as user of brand
E.G. benz Car owner think that since he has bought the car
he is treating himself to one of the best car in the world.

STRATEGIC BRAND MANAGEMENT

For Sify India let us look at how they have

built the brand basis the Kapferer Model

Physical
Kite Symbol, Online Access
Personality
Innovative & Tech savvy
Culture
Customer centric & Indian

Self -image
"net" way of life empowered
Reflection
Consistent & dependable performer
Relationship
Best guide to the net

STRATEGIC BRAND MANAGEMENT

Brand Positioning
Is at the heart of the marketing strategy.
. . . the act of designing the companys
offer and image so that it occupies a
distinct and valued place in the target
customers minds.
Philip Kotler

STRATEGIC BRAND MANAGEMENT

Identifying and Establishing Brand

Positioning
It involves 3 Basic Concepts
Target Market
Nature of Competition
Points of Parity and Points of Difference

STRATEGIC BRAND MANAGEMENT

1.
2.
3.

4.

Target Market

A market is the set of all actual and potential buyers who

have sufficient interest in, income for, and access to a
product.
Market segmentation divides the market into distinct
groups of homogeneous consumers who have similar
needs and consumer behavior, and who thus require
similar marketing mixes.
Market segmentation requires making tradeoffs between
costs and benefits.
Criteria for Segmentation:
Identifiably: Can we easily identify the segment?
Size: Is there adequate sales potential in the segment?
Accessibility: Are specialized distribution outlets and
communication media available to reach the segment?
Responsiveness: How favorably will the segment respond
to a tailored marketing program?

STRATEGIC BRAND MANAGEMENT

2. Nature of Competition

Deciding to target a certain type of consumer

often defines the nature of competition.
Competition takes place on other bases of
course such as channels of distribution it also
analysis considers a whole host of factors
including the resources capabilities and likely
intentions of various other firms in order for
marketers to choose markets where consumers
can be profitably served .
Do not define competition too narrowly.

STRATEGIC BRAND MANAGEMENT

3. Points of Parity and Points of Difference

1. Points of Difference Associations: are

attributes or benefits that consumers strongly
associate with a brand, positively evaluate, &
believe that they could not find to the same
extent with a competitive brand.
2. Points of Parity Associations: are those
associations designed to negate competitors
POD.
3. Points of Parity versus Points of Difference:
consumers must believe that the brand is
good enough on that dimensions.

STRATEGIC BRAND MANAGEMENT

Positioning Guidelines
1. Defining and Communicating the
Competitive Frame of Reference.
2. Choosing Points of Parity and Points of
Difference.
3. Establishing Points of Parity and Points of
Difference.
4. Updating Positioning Over Time.

STRATEGIC BRAND MANAGEMENT

1. Defining and Communicating the

Competitive Frame of Reference:

A starting point in defining a competitive

frame of reference for brand positioning is to
determine Category Membership. Membership
indicates the products or set of products with
which a brand competes. Communicating
category membership informs the consumer
about the goals that they might achieve by
using a product or service.

STRATEGIC BRAND MANAGEMENT

2. Choosing Points of Parity and Points

of Difference
Points of Parity: These are driven by the needs of
category membership and the necessity of
negating competitors PODs.
Points of Difference: These are based on the
following criteria:
1. Desirability: In terms of a) Relevance
b) Distinctiveness, and c) Believablity
2. Deliverability: In terms of a) Feasibility
b) Communicability, and c) Sustainability

STRATEGIC BRAND MANAGEMENT

3. Establishing Points of Parity and

Points of Difference:

1. Separate the attributes: Launch two

marketing campaigns, each one devoted to a
different brand attribute or benefit.
2. Leverage Equity of another Entity: Link the
brand with a well-liked celebrity, cause or
event.
3. Redefine the Relationship: Use attitude
change strategies to convert negative
perspectives about the brand to positive
ones.

STRATEGIC BRAND MANAGEMENT

4. Updating Positioning Over

Time
1. Laddering: This strategy is to deepen the
meaning of the brand to tap into core brand
values or other more abstract considerations.
2. Reacting: This could imply no reaction to
moderate or significant reactions depending
on level of competitive threat.

STRATEGIC BRAND MANAGEMENT

Brand Value
Value defines as the worth in usefulness or
importance to the possessor.
Brand value is the assessment of all you get in
return for all that you give.
Value is what the buyers are willing to pay it.
Value is the perceived worth of a set of benefits
received by a customer in exchange for the total
cost of an offering taking into consideration
available competitive offerings & price.

STRATEGIC BRAND MANAGEMENT

Defining & establishing Brand

mantra
1. Core Brand Values
Set of abstract concepts or phrases that
characterize the five to ten most important
dimensions of the mental map of a brand
Relate to
difference

points-of-parity

and

points-of-

Mental map Core brand values Brand mantra.

Mental map accurately portrays in detail all salient
brand associations & responses for a particular
target market.

STRATEGIC BRAND MANAGEMENT

2. Brand Mantras
An articulation of the heart and soul of the
brand.
similar to brand essence or core brand
promise.
Short three- to five-word phrases that
capture the irrefutable (certain ,
unquestionable ) essence or spirit of the
brand positioning and brand values.
It involves 2 concepts
1. Designing A brand mantras
2. Implementing a brand mantras

STRATEGIC BRAND MANAGEMENT

1. Designing the Brand Mantra

What makes a good brand mantra??
The term brand functions describes the nature of the
product or service or the type of experiences or benefits the
brand provides.
The descriptive modifier further clarifies its nature.
The emotional modifier provides another qualifierhow
exactly does the brand provide benefits, and in what way?

2. Implementing a brand mantras

Communicate: a good mantra should both define the
category of business to set the brand boundaries and
clarify what is unique about the brand.
Simplify: an effective brand mantra should memorable ,i.e.
it should be short, crisp .
Inspire: it should also stake out ground i.e. personally
meaningful and relevant to as many employee as possible.

STRATEGIC BRAND MANAGEMENT

Designing the Brand Mantra

Emotional
Modifier

Descriptive
Modifier

Brand
Functions

Nike

Authentic (real,
true,
dependable)

Athletic

Performance

Disney

Fun

Family

Entertainment

Fun

Folks

Food
3.54

STRATEGIC BRAND MANAGEMENT

3. Internal Branding
Members of the organization are properly
aligned with the brand and what it
represents.

STRATEGIC BRAND MANAGEMENT

Brand Audit
Externally, consumer-focused assessment.
A comprehensive examination of a brand involving
activities to assess the health of the brand, uncover
its sources of equity, and suggest ways to improve
and leverage that equity.
It includes brand vision, mission, promise, values,
position, personality, and performance.
Importance of Brand Audits
Understand sources of brand equity
Firm perspective
Consumer perspective

Set strategic direction for the brand

Recommend marketing programs to maximize longterm brand equity

STRATEGIC BRAND MANAGEMENT

Brand Audit Steps

Brand inventory (supply side): it provide a
current comprehensive profile of how all the
products & services sold by a company are
marketed and branded
Brand exploratory (demand side): although the
supply-side view revealed by the brand
inventory
is
useful
actual
consumer
perceptions.
The brand exploratory is research directed to
understanding what consumers think and feel
about the brand and its corresponding product
category in order to identify sources of brand
equity.

STRATEGIC BRAND MANAGEMENT

THANK YOU