Customer based brand equity model

The presentation elaborates CBBE model

1. Customer-Based Brand Equity Model Soroush Mosavati V 1,2 - Jan, 2015

2. A brand comes to embody a promise about the goods it identifies, a promise about quality , performance , or other dimensions of value , which can influence consumers ' choices among competing products.

3. Brand can convey six level of meaning (Kotler): Attribute : durable, prestigious, well engineered, and expensive Benefits : f unctional , emotional and self expressive Values : h igh performance, safety Culture : German culture, organized, efficient, high quality Personality : a ustere , aggressive, no-nonsense person

4. Quality of experience Experience economy is a new kind of emerging economy in which increasing numbers of industrial practitioners find out the importance of capitalizing on the customer experience (Xu & Chan, 2010). Competitive environment delivers quality of experience rather than quality of service (Klaus & Maklan , 2007).

5. There is a relationship between quality of experience and overall brand equity.

6. Brand Equity Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name. Consumers believe that a product with a well-known name is better than products with less well known names. The value of brand equity is the “ expected future revenue ” .

7. Benefits of Brand Equity: Enabling buying decisions Builds Customer Loyalty Builds Market Share Protect Market Share Helps Command Higher Price Create a Halo Effect Assists Product, Service and Business Expansion

8. Brand experience is also lead to positive brand equity Brand awareness : Consumers are aware of the brand. Brand recognition : Consumers recognize the brand and know what it offers versus competitors. Brand trial : Consumers have tried the brand. Brand preference : Consumers like the brand and become repeat purchasers. They begin to develop emotional connections to the brand. Brand loyalty : Consumers  demand  the brand and will travel distances to find it. As loyalty increases so do emotional connections until there is no adequate substitute for the brand in the consumer’s mind . Brand Maintenance : Sustain that loyalty and positive brand equity for years to come.

9. building brand equity with keller’s Customer-Based B rand E quity model Keller’s CBBE model is marketing focus The basic premise of the CBBE concept is that 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.

10. Strategic Brand M anagement SBM involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. Strategic brand management process has four main steps: 1- Identifying and developing brand plans 2- Designing and implementing brand marketing program 3- Measuring and interpreting brand performance 4- Growing and sustaining brand equity

11. Identifying and developing brand plans It clears understanding of what the brand is to represent and how it should be positioned with respect to competitors. B rand P ositioning Model : Describes how to guide integrated marketing to maximize competitive a dvantages . B rand R esonance Model : D escribes how to create intense, activity loyalty relationships with customers. B rand V alue Chain : M eans to trace the value creation process for brands, to better understand the financial impact of brand marketing expenditures and investments.

12. Brand Positioning delivers: Mental maps Competitive frame of reference Points-of-parity and points-of difference Core brand associations Brand mantra Positioning requires defining our desired or ideal brand knowledge structures and establishing points-of-parity and points-of-difference to establish the right brand identity and brand image. P ositioning Model answers to these questions: Who the target consumer is? Who the main competitors are? How the brand is similar to these competitors? How the brand is different from them?

13. Brand Resonance Ensure identification of the brand with customers and an association of the brand in customers ’ minds with a specific product class, product benefit, or customer need . Firmly establish the totality of brand meaning in the minds of customers by strategically linking a host of tangible and intangible brand associations . Elicit the proper customer responses to the brand . Convert brand responses to create brand resonance and an intense, active loyalty relationship between customers and the brand.

14. Those four steps represent a set of fundamental questions that customers invariably ask about brands—at least implicitly. The four questions (with corresponding brand steps in parentheses ) are: 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)

15. The Brand Value Chain Stage 1: The brand value creation process begins when the firm invests in a marketing program targeting actual or potential customers. Stage 2: The associated marketing activity then affects the customer mind-set—what customers know and feel about the brand—as reflected by the brand resonance model Stage 3: This mind-set, across a broad group of customers, produces the brand’s performance in the marketplace—how much and when customers purchase, the price that they pay, and so forth Stage 4: Finally , the investment community considers this market to arrive at an assessment of shareholder value in general and a value of the brand in particular

16. Brand Value Chain

17. Brand elements: sometimes called brand identities, are those trademarkable devices that serve to identify and differentiate the brand. The main ones are brand names, URLs, logos, symbols , characters , spokespeople, slogans, jingles, packages, and signage . Criteria for Choosing Brand Elements: 1. Memorable Easily recognized Easily recalled 2. Meaningful Descriptive Persuasive 3. Likable Fun and interesting Rich visual and verbal imagery Aesthetically pleasing 4. Transferable Within and across product categories Across geographic boundaries and cultures 5. Adaptable Flexible Updatable 6. Protectable Legally Competitively

18. Designing and implementing brand marketing program positioning the brand in the minds of customers and achieving as much brand resonance as possible . Brand-building product, pricing, channel, and communication strategies must be put into place.

19. “The challenge for marketers in building a strong brand is ensuring that customers have the right type of experiences with products and services and their accompanying marketing programs so that the desired thoughts , feelings , images, beliefs, perceptions, opinions , and so on become linked to the brand.” Kevin Lane Keller

20. Branding is built over time by the company supporting its brand strategy and in everything it does. Therefore all employees must work as ambassadors of the brand and be consistent in how they present the brand, Aaker .

21. Thank You