BUILDING, MEASURING, AND MANAGING BRAND EQUITY

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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 …
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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:
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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
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•
•
•
•
•
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
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