MKTG7502
Strategic Branding
Brand equity
Equity in Coke
Source: conversion-uplift.co.uk
The Concept of Brand Equity
•
The brand equity concept stresses the importance of the brand in
marketing strategies.
•
Brand equity is defined in terms of the marketing effects uniquely
attributable to the brand.
Brand equity relates to the fact that different outcomes result in
the marketing of a product or service because of its brand name,
as compared to if the same product or service did not have that
name.
Brand Equity as a Bridge
Source: jeffschwisow.com/
Strong Brands
•
Brands that have been market leaders in their categories for
decades
•
Any brand is vulnerable and susceptible to poor brand
management
Marketing Advantages of Strong Brands
•Improved perceptions of product performance
•Greater loyalty
•Less vulnerability to competitive marketing actions
•Less vulnerability to marketing crises
•Larger margins
•More inelastic consumer response to price increases
•More elastic consumer response to price decreases
•Greater trade cooperation and support
•Increased marketing communication effectiveness
•Possible licensing opportunities
•Additional brand extension opportunities
MKTG7502
Strategic Branding
Customer Based Brand Equity (CBBE)
Defining Customer Based Brand Equity (CBBE)
•
•
Approaches brand equity from the perspective of the consumer
•
Differential effect that brand knowledge has on consumer response to the
marketing of that brand
Stresses that the power of a brand lies in what resides in the minds and
hearts of customers
Determinants of CBBE
 Customer is aware of and familiar with the
brand
 Customer holds some strong, favorable,
and unique brand associations in memory
Source: childpsychologyworkshops.com.au
Brand Knowledge
•
Key to create brand equity
 Creates the differential effect that drives
brand equity
•
Marketers need an insightful way to
represent how brand knowledge exists in
consumer memory
Possible Apple Computer Associations
Sources of Brand Equity
Recognition
Recall
Brand Image
Strength of Brand
Associations
• More deeply a person thinks about product
information and relates it to existing brand knowledge,
stronger is the resulting brand association
Favorability of Brand
Associations
• Is higher when a brand possesses relevant attributes
and benefits that satisfy consumer needs and wants
Uniqueness of Brand
Associations
• “Unique selling proposition” of the product
• Provides brands with sustainable competitive
advantage
CBBE (Brand resonance) Pyramid
To Sum up ...
•
Consumers perception of the brand plays a key role in determining the worth
of the brand
• Brand equity offers guidance to interpret past marketing performance and
design future marketing programs
• Other factors that influence brand success and equity are:
 Employees, suppliers, and channel members
 Media and government
• To create brand equity, marketers should:
 Create favorable consumer response i.e. brand awareness
 Create positive brand image though brand associations that are strong,
favorable, and unique
MKTG7502
Strategic Branding
Financial Based Brand Equity (CBBE)
FBBE
•
The net financial worth of brands as
separable assets
•
•
Various measures
Consistent in businesses (balance sheet
to balance sheet)
Source: 1000logos.net
FBBE Measures
•
Source: Noor, Styles and Cowley
(2011)
The Case of Volkswagen
Source: wsj.net
Is brand a buffer?
Relationship between FBBE & CBBE
•
•
FBBE refers to the monetary value of a brand’s intangible assets,
such as the strength of its consumer franchise and legal
protections.
CBBE refers specifically to consumers’ brand knowledge as an
asset to the brand
Strategic
Brand
Management
Process
Thank you
Dr Cassandra France | Lecturer
UQBS