Virtually every marketing dollar spent today must be justified as both effective and efficient in terms of return of marketing investment (ROMI). Some observers believe that up to 70% (or even more) of marketing expenditures may be devoted to programs and activities that cannot be linked to short-term incremental profits, but yet can be seen as improving brand equity.
What it does?
Recognizes Numerous individuals within the organization that can affect brand equity. Since different individuals make different brand related decisions BVC provides insights to help make better decisions.
Fundas of BVC
Value of the brand resides with the customers Brand value creation programme begins as firm invests in marketing program This program affects the customer mind set with respect to the brand. This mind set across broad customer base results in certain outcomes for the brand in terms of how it performs in the market Finally the investment community considers this performance and other factors to arrive at brand value
Value Stages
Any marketing program that can be attributed to brand value development In what way have customers been changed as a result of the marketing program?
Customer mindset
Market performance
Shareholder value
Multipliers
Program quality multiplier The ability of the marketing program to affect customer mindset Must be clear, relevant, distinct, and consistent Customer multiplier The extent to which value created in the minds of customers affects market performance It depends on factors such as competitive superiority, channel support, and customer size and profile Market multiplier The extent to which the value generated through brand market performance is manifested in shareholder value It depends on factors such as market dynamics, growth potential, risk profile, and brand contribution
Implications
Thus According to BVC marketers create value by Shrewd investment in their marketing program And then by maximizing the program, customer and market multiplier that translates that investments into bottom line financial benefits
Tracking studies involves information collected from consumers on routine basis. Employ quantitative measures to provide marketers with current information about the performance about their brand and marketing programs
Considerations
What to track? Awareness and usage Brand judgments Brand performance Brand imagery Brand feelings Brand resonance
Will reflect the level and nature of experience that the particular group of respondents would be likely to have had with the company.
Infosys
How well managed is infosys? How easy is it to do business with infosys? How concerned is infosys with its customers? How approachable is infosys? How accessible is infosys? How much do you like doing business with infosys?
Global tracking.
Involves tracking in diverse geographic markets. Some Brand context measures. Economic indicators Retail Technology Personal attitudes and values Media indicators Demographic profile Other products and services Attitude to brand and shopping
Who to track?
Internal structures and procedures within the organization to capitalize on the information collected. is defined as set of organizational processes designed to improve the understanding and use of brand equity concept within the firm
Formalizing company view of brand equity into document. It provides relevant guidelines to people within the company as well as key outside partners.
It should do..
Define firms view of brand equity concept Describe the scope of key brands in terms of associated products and the manner they have been branded and marketed. Specify the actual and desired levels of equity Explain how brand equity is measured Suggest how brand equity should be managed in terms of strategic guidelines Specify proper treatment of brand in terms of trademark usage etc
The Fans
Sensory fulfillment Looks, feels, and sounds
Championship caliber
A vital part of New York City Unlimited in its possibilities
Assembles the results of the tracking survey and other relevant performance measures To be developed monthly, quarterly, or annually Provides descriptive information as to what is happening with the brand as well as diagnostic information on why it is happening
Organizational responsibilities and processes that aim to maximize long-term brand equity Establish position of VP or Director of Equity Management to oversee implementation of Brand Equity Charter and Reports Ensure that, as much as possible, marketing of the brand is done in a way that reflects the spirit of the charter and the substance of the report
Qualitative research techniques: are relatively unstructured measurement approaches whereby a range of possible consumer responses is permitted Quantities research techniques: are range of possible associations in terms of strength, favorability, uniqueness and a more definitive portrait of brand
Free associations Projective techniques Brand personality and values Experiential methods
Free associations
What comes to your mind when you think of Rolex? The purpose of free association task is to identify the range of possible brand associations in consumers mind
Archetype Research ( is fundamental psychological association shared by the members of the culture, with a given cultural object)
Guidelines
Two main aspects. How to set up the questions? How to code and interpret the resulting data?
Projective techniques
BSRB Projective techniques are diagnostic tools to uncover the true opinions and feelings of consumers when they are unwilling or otherwise unable to express themselves on these matters.
How is it done?
Rorschach test.
Cont
Consumers are presented with incomplete stimulus and asked to complete it. Or given ambiguous stimulus that may not make sense to them and asked to make sense out of it. In doing so consumers will reveal some of their true beliefs.
Bubble exercises
Comparison tests
If ________ were would it be? If ________ were would it be? If ________ were one would it be? If ________ were one would it be?
a magazine which
What would it be like? What would it do? Where would it live? Who would be its friends?
For brands
Experiential methods
Quantitative
Awareness
Strength of brand in memory as reflected by consumers ability to identify various brand elements. What's the implication of awareness in case of chocolates and television? Relative importance of brand elements.
Consider this
Cont
Recognition : ability to identify the brand under a variety of circumstances and can involve identification of any of the brand elements.
Recall
Ability to retrieve the actual brand element from memory when given some related probe or cue. Unaided recall: based on all brands, provided a cue which brand is likely to be identified, Phones
Aided recall
Phones Cell phones Touch screen phones With Windows With 3g Using possible sequence for progressively narrower ques
Spurious awareness
occurs when consumers erroneously claim that they recall something that really dont and that may be does not exist
Image
Scaling considerations
Brand relationships
Brand Responses
Experiment
shopping list kg Potatoes kg Gram liter milk Bunch of coriander leaves and green chilies kg Tea powder kg cooking oil 2 kg Rice
shopping list kg Potatoes kg Gram liter milk Bunch of coriander leaves and green chilies Tea bags kg cooking oil 2 kg Rice
Comparative Methods
involve experiments that examine consumer attitudes and behavior toward a brand to directly estimate the benefits arising from having a high level if awareness and string, favorable and unique brand associations
As means of measuring the outcomes of brand equity Marketing element or activity under consideration is held fixed and examine consumer response based on changes in brand identification. Blind test
Here the brand is held fixed and examine consumer responses based on changes in marketing program.
Consider this..
What's the first brand of chocolate comes to your mind when you buy one? Dairy milk @10 Rs Dairy milk @14 Rs Dairy milk @18 Rs Dairy milk @25 Rs Dairy milk @40 Rs
Consider this
If commercials of dairymilk were cut how long before the sales would drop? 1-3 months 3-6 months 6-12 months 1 year above
Conjoint analysis
Is survey based multivariate technique that enables marketers to profile the consumer decision process with respect to products and brand. The value that consumers attach to each attribute level is call part worth.
Holistic methods
Attempts to place an overall value on the brand in either abstract utility terms or concrete financial terms.
Residual approach
Says Brand equity is what remains of the consumer preferences and choices after subtracting physical product effects
Valuation approaches
Kitkat 5 10 5 10
Fivestar 5 10 10 5
Dairy milk 10 5 10 5
munch 10 5 5 10
Assignment
Track the brand personality of the following. Pulsar Fair and lovely Amul Airtel Thumsup Archies gallery