Importance of brands to firms and consumers Firms- Over 70% of customers want to use brand to guide their

purchase decision- Over 50% of purchases are brand driven- Makes introducing new products easier- 50% of people are more likely to try a new product if it is

from a brand that they know and like- Strong brand enables higher margins- The stronger the brand, the more forgiving customers are- Stronger brand tend to have the best employees

Consumers- Helps decision making process, brand=quality & value- Reduces risk of purchase(functional, psychological,

financial, social and physical risk)- Helps customers assigning the responsibility- Lowers our search costs

CBBE Model and Identity PrizmThe CBBE model approaches brand equity from the perspective ofthe customer.The power of a brand lies in what customers have learned, felt, seen and heard about the brand as a result of their experiences over time.

Brand Salience- broad awareness of the brand- first step in building a brand equity is the brand awareness

that contains two parts, brand recognition and brand recall

brand recognition: how easily consumer identify a brand after exposing some cue or a physical product)brand recall: how easily consumer recall the brand without showing a cue while making purchase decision or thinking theproduct category)

- depth and breadth of brand awarenessdepth: how likely it is for a brand element to come to mind breadth: the range of purchase and the situations in which brand comes to mind of consumers

Brand performance

- how well the product or services meet customer’s functional needs

- reliability(consistency of performance), durability(life of the product) and serviceability(repairing)

- Style, design and price

Brand Imagery

- Psychological and social needs- Intangible aspects of the brand: user profiles, purchase and

usage situation, personality and values, and history, heritage and experiences

- Demographics and psychographics affect them

Brand judgements

- Personal opinions and judgement of the brand- Brand quality(benefits), brand credibility(competitive,

innovative), brand consideration(when purchasing), brand superiority(uniqueness and better than others)

Brand feelings

- Customers’ emotional responses and reactions- Warmth, fun, excitement, security(safety, comfort), social

approval, self-respect(pride)

Brand resonance

- Behaviour loyalty- Attitudinal attachment- Sense of community

- Active engagement

Cognitive base approach (logics) and Affective based approach (feelings)

Identity prism

Secondary associations to enhance brand equity- Company(through brand strategies)- Country of origin- Channels of distribution- Other brands(co-branding)- Characters(licensing)- Celebrity spokesperson(endorsement advertising)- Events(sponsorship)- Other third party sources(awards or review)

Measuring Brand EquityQuantitative techniques- Awareness- Image- Brand responses- Brand relationship

Qualitative techniques good way to collect consumer’s perceptions - Free Association(asking participants what comes to mind when

they think of the brand)- Projective Techniques(tool to uncover true opinions and

feelings of consumers when they are unwilling to express themselves) eg. Fill in the bubble

- Brand personality(assigning human characteristics to the brand) –> used for building brand persona or profile. Five factors: sincerity, excitement, competence, sophistication, ruggedness

- Experiential methods(more into consumer’s life style)

Disadvantage of Qualitative techniques

- Small portion of sample, not suitable for large number- Based on researchers’ interpretations

BAV(Brand Asset Valuator)

- D>R, room to grow and brand has power to build relevance (eg. Yahoo, Harley Davidson, IKEA)

- R>D, uniqueness has faded, price become dominant reason to buy (eg. McDonalds)

- E>K, Brand is better liked than knowledge, I’d like to get to know you better (eg. Tag Heuer)

- K>E, brand is better known than knowledge, I know you are nothing special (Eg. Spam, Woolworths)

Brand PortfolioRoles played by brands in the portfolio- Flankers: extension of an existing brand to create another

product(beers)- Cash Cows: brands that have declining sales but still

profitable(razor blades)- Low-end entry level: products that allow customers entry

into the brand franchise(eg. BMW 3 series)- High-end prestige brands: reinforces, upgrades parent brands

position(chevy corvette)

Brand Hierarchy and key hierarchy decisions- No. of levels of the brand hierarchy- Desired awareness and image at each level- Combining brand elements from different levels- Liking brand elements to multiple products

Brand ExtensionsAcademic research findings

Advantage- Facilitate product acceptance- Provide feedback benefits to the parent brand

Disadvantage

- Confusing customers- May cannibalize sales of the parent brand- Dilute brand meaning- Hurt the image of parent brand

Successful brand extension occurs when the parent brand is seen as having favourable associations and there is a perception of fit between parent and the extension product.

Consumers may see the extension product negatively

Unsuccessful brand extension hurts the parent brand

Managing brands over time(reinforcing, revitalising, adjust brands)

Reinforcing brands- Maintaining brand consistency: maintaining strength- Protecting sources of brand equity: should not be changed- Fine tuning the marketing support program: innovation

Revitalising brands- Expanding brand awareness: expand breadth(increased

usage)new usage opportunities in new situations or new andcompletely different ways of using(gumsmoking)

- Improving brand image: repositioning and changing the brand elements(new marketing program, new positive associations, negative associations to be neutralized)

- Entering new markets: new customers

Adjust brand- Migration strategy: entry level brand(BMW 3)- Acquiring new customers: brand extension- Retiring brand: discontinue brand

Cause Related Marketing- A commercial activity that businesses and charities form a

partnership with each other to market an image, product or service for mutual benefit (both of them must benefit)

- Used to address social issues and business objectives at thesame time

- Win/Win/Win situation, the company, the cause and the consumer

- Eg. American express and the liberty statue restoration