STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING BRAND EQUITY Kevin Lane Keller Kafli 2 21. september 2004 1 Motivation for Customer-Based Brand Equity Model • Marketers know strong brands are important but aren’t always sure how to build one. • CBBE model was designed to be … – – – – – comprehensive cohesive well-grounded up-to-date actionable 2 MARKETING PLANNING PROCESS Complex, Varied Marketing Activity Detailed, Rich Marketing Models Comprehensive, Robust Marketing Measures Rationale of Customer-Based Brand Equity Model • Basic premise: Power of a brand resides in the minds of customers • Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures: – – – – – Thoughts Feelings Images Perceptions Attitudes 4 Building Customer-Based Brand Equity • Building a strong brand involves a series of steps as part of a “branding ladder” • A strong brand is also characterized by a logically constructed set of brand “building blocks.” – Identifies areas of strength and weakness – Provides guidance to marketing activities 5 CUSTOMER-BASED BRAND EQUITY PYRAMID 4. RELATIONSHIPS = RESONANCE What about you & me? 3. RESPONSE = JUDGMENTS FEELINGS What about you? 2. MEANING = PERFORMANCE IMAGERY SALIENCE What are you? 1. IDENTITY = Who are you? 6 Salience Dimensions • Depth of brand awareness – Ease of recognition & recall – Strength & clarity of category membership • Breadth of brand awareness – Purchase consideration – Consumption consideration 7 Performance Dimensions • Primary characteristics & supplementary features • Product reliability, durability, and serviceability • Service effectiveness, efficiency, and empathy • Style and design • Price 8 Imagery Dimensions • User profiles – Demographic & psychographic characteristics – Actual or aspirational – Group perceptions -- popularity • Purchase & usage situations – Type of channel, specific stores, ease of purchase – Time (day, week, month, year, etc.), location, and context of usage • Personality & values – Sincerity, excitement, competence, sophistication, & ruggedness • History, heritage, & experiences – Nostalgia – Memories 9 Judgment Dimensions • Brand quality – Value – Satisfaction • Brand credibility – Expertise – Trustworthiness – Likability • Brand consideration – Relevance • Brand superiority – Differentiation 10 Feelings Dimensions • • • • • • Warmth Fun Excitement Security Social approval Self-respect 11 Resonance Dimensions • Behavioral loyalty – Frequency and amount of repeat purchases • Attitudinal attachment – Love brand (favorite possessions; “a little pleasure”) – Proud of brand • Sense of community – Kinship – Affiliation • Active engagement – Seek information – Join club – Visit web site, chat rooms 12 Customer-Based Brand Equity Model INTENSE, ACTIVE LOYALTY ConsumerBrand Resonance Consumer Judgments Brand Performance Consumer Feelings Brand Imagery Brand Salience RATIONAL & EMOTIONAL REACTIONS POINTS-OFPARITY & POINTS-OFDIFFERENCE DEEP, BROAD BRAND AWARENESS 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 Application: Identify the key drivers of brand equity Performance Judgment 0.65 0.49 Imagery Resonance 0.66 0.17 0.24 0.58 Feelings