Download Customer Based Brand Equity

Customer Based Brand Equity
Teacher – Shahed Rahman
Chapter 2
What makes a brand strong ? How do
you build a strong brand?
 Customer Based Brand
Equity
 CBBE
 Built
 Measured
 Managed
 The power of a brand lies in
what customers have
 Learned
 Felt
 Seen
 Heard
The power of a brand lies in
what resides in the minds
of customers
Customer Based Brand Equity
 “The differential effect that brand knowledge has on
consumer response to the marketing of that brand.”
Keller, 1993
Customer Based Brand Equity
 The differential knowledge that brand knowledge has on the
marketing of that brand.
 Differential
 Knowledge
 Response to marketing
Customer Based Brand Equity
 Positive Customer Based Brand
Equity
o When customers react more
favorably to a product.
o Customer might be more
accepting of a new brand
extension
o Less sensitive to a price increases
o Withdrawal of advertising
support
o More willing to see the product in
a new distribution channel.
Customer Based Brand Equity
 Negative Customer Based Brand Equity
 If consumer react less favorably to marketing activity
 Compare to other unknown product in the market
Quality
Convenient
Service
McDonalds
Ronald
McDonald
Cleanliness
Value
Sources of Brand Equity
 Customer based brand equity occurs
 When the customer has a high level of awareness and
familiarity with the brand
 Holds some strong, favourable and unique associations
in memory.
Making a Brand Strong:
Brand Knowledge
 Brand knowledge is the key to creating brand equity.
 Brand knowledge consists of a brand node in memory with
a variety of associations linked to it.
 Brand knowledge has two components:
 Brand awareness and
 Brand image.
Brand Equity
 Brand Awareness
 Brand Recognition
 Brand Recall
 Advantages
 Learning advantages
 Consideration advantages
 Choice advantages
 Brand Image
 Strength of brand associations
 Brand Attributes
 Brand Benefits
 Favourability of brand associations
Convenient, Reliable, Effective, Efficient, Colourful
 Desirability
 Deliverability
 Uniqueness of brand associations
 USP is the reason why customer should buy it
 Direct comparison with competitors
The Four Steps of Brand Building
1.
2.
3.
4.
Ensure identification of the brand with customers and
an association of the brand in customers’ minds
Establish the totality of brand meaning in the minds of
consumers
Elicit the proper customer responses to the brand
identification and brand meaning
Convert brand response to create an intense, active loyalty
relationship between customers and the brand
2.13
Four Questions Customers ask of Brands
1.
2.
3.
4.
2.14
Who are you? (brand identity)
What are you? (brand meaning)
What about you? What do I think or feel about you?
(brand responses)
What about you and me? What kind of association
and how much of a connection would I like to have
with you? (brand relationships)
Sub-Dimensions of CBBE Pyramid
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT
QUALITY
CREDIBILITY
CONSIDERATION
SUPERIORITY
PRIMARY CHARACTERISTICS &
SECONDARY FEATURES
PRODUCT RELIABILITY,
DURABILITY & SERVICEABILITY
SERVICE EFFECTIVENESS,
EFFICIENCY & EMPATHY
STYLE AND DESIGN
PRICE
WARMTH
FUN
EXCITEMENT
SECURITY
SOCIAL APPROVAL
SELF-RESPECT
USER PROFILES
PURCHASE & USAGE
SITUATIONS
PERSONALITY &
VALUES
HISTORY, HERITAGE
& EXPERIENCES
CATEGORY IDENTIFICATION
NEEDS SATISFIED