Chapter Two

Marcoms Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable
2007 Thomson South-Western
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Brand
A Differentiated Product is a Brand A product must satisfy two conditions to be called a brand

Thums Up, Ariel

Definition of Brand Equity

Brand Equity is Brand Value

Brand equity can be considered either from the perspective of the organization that owns it or from the vantage point of the customer.

As Brand Equity Increases

1. 2. 3. 4.

A higher market share is achieved Brand loyalty increases Premium prices can be charged The brand earns a revenue premium

Firm based perspective of brand equity

The revenue differential between a branded item and a corresponding private labeled item. Revenue premium= (volumeb)(priceb)-(volumepl)(pricepl)

A Customer-Based Perspective on Brand Equity

Two forms of Brand Knowledge

Brand Awareness
An issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked.

The Brand Awareness Pyramid

Brand Recognition

Aided Brand Recall

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Free (unaided) brand recall

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Two Forms of Brand Knowledge

Brand Image

The types of associations that come to the consumers mind when contemplating a particular brand.

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Network of Brand Associations

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Network of Brand Associations

Each circle Each line
Thickness of each line Number of lines leading into a node

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Nielsen Buzz Metrics Brand Associations Concept Map (BACM)

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What does a Brand Associations Concept Map (BACM) tell you?

What thoughts (names, attributes, benefits, pictures, words, images, etc. etc.) come to your mind when presented with a brand cue? How strongly/weakly are they linked to the brand cue? Conclusions you can draw from a BACM

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Dimensions of Brand Personalities

Competence Ruggedness Excitement Sophistication Sincerity

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Illustration of a Sincere Brand

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Illustration of an Exciting Brand

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Illustration of a Competent Brand

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Illustration of a Sophisticated Brand

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Illustration of a Rugged Brand

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Branding Strategies
Leveraging the equity of an established / reputed brand name Why do you do it?

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Branding Strategies

Co-branding Ingredient branding Brand Extensions Sub-branding

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www.lovemarks.com

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www.lovemarks.com

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The Lovemark Grid

(Pawle and Cooper 2006, Journal of Advertising Research)

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Characteristics of World Class Brands

Delivers benefits consumers want Stays relevant Price equals value Good positioning Consistency

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Characteristics of World Class Brands

Fits into brand portfolio Brand uses all IMC options available to build equity Brands managers understand what the brand means to consumers Support over long run Monitoring of the sources of brand equity
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Top 10 Global Brands (2009)

www.interbrand.com

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How does Interbrand Value these brands

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Affecting Behavior and Achieving Marcom Accountability

Creating brand awareness and boosting brand image has little positive effect unless individuals make purchases or engage in some other form of desired behavior.

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ROMI
The effect of marcom, or of its specific elements such as advertising, can be gauged in terms of whether it generates a reasonable revenue return on the marcom investment. In marketing, return on investment is called return on marketing investment (ROMI)
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Choosing a Metric

Change in brand awareness Improved consumer attitude toward the brand Increased purchase intentions Larger sales volume Greater repeat sales Etc.

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