strategic brand management building, measuring, and managing brand equity

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1 STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING BRAND EQUITY Kevin Lane Keller Kafli 2 21. september 2004

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STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING BRAND EQUITY. Kevin Lane Keller Kafli 2. 21. september 2004. Motivation for Customer-Based Brand Equity Model. Marketers know strong brands are important but aren’t always sure how to build one. CBBE model was designed to be … - PowerPoint PPT Presentation

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Page 1: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

1

STRATEGIC BRAND MANAGEMENTBUILDING, MEASURING, AND MANAGING

BRAND EQUITY

Kevin Lane Keller

Kafli 2

21. september 2004

Page 2: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

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Motivation forCustomer-Based Brand Equity Model

• Marketers know strong brands are important but aren’t always sure how to build one.

• CBBE model was designed to be …– comprehensive – cohesive – well-grounded – up-to-date– actionable

Page 3: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

Complex,Varied

MarketingActivity

Comprehensive,Robust

MarketingMeasures

Detailed,Rich

MarketingModels

MARKETING PLANNING PROCESS

Page 4: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

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Rationale of Customer-Based Brand Equity Model

• Basic premise: Power of a brand resides in the minds of customers

• Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:– Thoughts– Feelings– Images– Perceptions– Attitudes

Page 5: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

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Building Customer-Based Brand Equity

• 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

Page 6: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

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CUSTOMER-BASED BRAND EQUITY PYRAMID

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

4. RELATIONSHIPS =

What about you & me?

3. RESPONSE =

What about you?

3. RESPONSE =

What about you?

2. MEANING =

What are you?

2. MEANING =

What are you?

1. IDENTITY =

Who are you?

1. IDENTITY =

Who are you?

Page 7: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

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Salience Dimensions

• Depth of brand awareness– Ease of recognition & recall– Strength & clarity of category membership

• Breadth of brand awareness– Purchase consideration– Consumption consideration

Page 8: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

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Performance Dimensions

• Primary characteristics & supplementary features

• Product reliability, durability, and serviceability

• Service effectiveness, efficiency, and empathy

• Style and design

• Price

Page 9: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

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Imagery Dimensions

• User profiles– Demographic & psychographic characteristics– Actual or aspirational– 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, sophistication, &

ruggedness

• History, heritage, & experiences– Nostalgia– Memories

Page 10: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

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Judgment Dimensions

• Brand quality– Value– Satisfaction

• Brand credibility– Expertise– Trustworthiness– Likability

• Brand consideration– Relevance

• Brand superiority– Differentiation

Page 11: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

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Feelings Dimensions

• Warmth• Fun• Excitement• Security• Social approval• Self-respect

Page 12: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

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Resonance Dimensions

• 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

Page 13: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

Customer-Based Brand Equity Model

Consumer-BrandResonance

Brand Salience

Consumer Judgments

Consumer Feelings

BrandPerformance

BrandImagery

INTENSE, ACTIVE LOYALTY

INTENSE, ACTIVE LOYALTY

RATIONAL & EMOTIONAL REACTIONS

RATIONAL & EMOTIONAL REACTIONS

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

DEEP, BROAD BRAND

AWARENESS

DEEP, BROAD BRAND

AWARENESS

Page 14: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

Sub-Dimensions of CBBE Pyramid

LOYALTYATTACHMENTCOMMUNITYENGAGEMENT

QUALITY CREDIBILITYCONSIDERATIONSUPERIORITY

WARMTHFUNEXCITEMENTSECURITYSOCIAL APPROVALSELF-RESPECT

CATEGORY IDENTIFICATIONNEEDS SATISFIED

PRIMARY CHARACTERISTICS &SECONDARY FEATURES

PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY

SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY

STYLE AND DESIGN PRICE

USER PROFILESPURCHASE & USAGE

SITUATIONSPERSONALITY &

VALUESHISTORY, HERITAGE, & EXPERIENCES

Page 15: STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING  BRAND EQUITY

Application:Identify the key drivers of brand equity

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PerformancePerformance

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P-7

P-7

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P-9P-9

P-3

P-3

P-4P-4

P-6P-6

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P-12

I-2I-2

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ImageryImagery

I-1I-1

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I-10 I-10

I-7I-7

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I-12

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F-2

FeelingsFeelings

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JudgmentJudgment

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J-10J-10

J-7J-7

J-8J-8

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J-11 J-12

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R-2R-2

ResonanceResonance

R-1

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R-3

R-4R-4

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R-6

R-5R-5

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R-7

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R-9R-9

R-11

R-11 R-1

2R

-12

0.58

0.49