BRAND MANAGEMENT AND
NEW PRODUCT DEVELOPMENT
SECTION 4B
Brand Management and the Firm
Brand Equity Models
ALAN L. WHITEBREAD
This type of activity is usually the responsibility of the SBU not the
corporate office.
[A] centralized research [B] corporate business development [C] large
advanced R&D projects [D] strategic alliances
The goods-services continuum includes all except which of the following
quality attributes?
[A] credence [B] experience [C] search [D] value
The augmented product ring of the product concept includes?
(A) features, packaging and styling (B) the core product or service (C)
installation delivery and repair (D) A, B and C.
SEVEN BRAND MANAGEMENT
APPROACHES
1.
2.
3.
4.
5.
6.
7.
Economic
Identity
Consumer-based
Personality
Relational
Community
Cultural
COMPANY SENDER FOCUS
• THE ECONOMIC APPROACH
–
–
–
–
–
Firm owns the brand
Manages the brand with the traditional marketing mix
Company identity helps shape a brand message
Marketer is in charge of brand value creation
Linear [broadcast] communication from marketer
down to and through channels of distribution [push] to
receivers
– A consumer is an “economic man” passively receiving
and understanding messages from the sender exactly
as intended.
COMPANY SENDER FOCUS
• Economic approach – The economic man
1. Human behavior is rational
2. Humans maximize their satisfaction and/or
utility [self-interest is important]
3. Humans have perfect market information
4. The exchange is an isolated event and not
related to any other event
5. Humans have limited income which causes
them to maximize the utility of their income
COMPANY SENDER FOCUS
• THE IDENTITY APPROACH
– Focus is on corporate identity
– Brand is integrated into all organizational
levels
– Organizational culture and corporate identity
heavily influence the brand
HUMAN RECEIVER FOCUS
• THE CONSUMER-BASED APPROACH
[CBBE]
– Brand is linked to customer associations
– The brand is a consumer mental construct
– Focus shifts to the message receiver
– The consumer is the owner of the brand
– Marketer can program the consumer through
brand messages
CUSTOMER-BASED BRAND EQUITY
[CBBE] PYRAMID
4. RELATIONSHIPS
RESONANCE
3. RESPONSE
JUDGMENTS
FEELINGS
2. MEANING
PERFORMANCE
IMAGERY
SALIENCE
Projecting the brand
1. IDENTITY
CBBE: BRAND IDENTITY
Who are you?
RESONANCE
JUDGMENTS FEELINGS
PERFORMANCE
• Brand salience
SALIENCE
Projecting the brand
– How often is the brand recalled?
– Is it easy to recall?
– What reminders are necessary?
– Dimensions of brand awareness
• Depth: the likelihood of recall
• Breadth: the range of purchase opportunities
• Beverage category hierarchy
– How effective are the brand elements?
• Identify and differentiate each one
IMAGERY
CBBE: BRAND MEANING
What are you?
RESONANCE
JUDGMENTS FEELINGS
PERFORMANCE
•
Brand performance
1. Primary product and supplementary
features
2. Product reliability, durability, and
serviceability
3. Service effectiveness, efficiency, and
empathy
4. Style and design
5. Value proposition using emotional and
intangible elements [not price]
IMAGERY
SALIENCE
CBBE: BRAND MEANING
What are you? [continued]
RESONANCE
JUDGMENTS FEELINGS
PERFORMANCE
•
Brand imagery
1. User profiles
–
Demographics, psychographics, …
2. Purchase and usage situations
–
Channel, store, timing, …
3. Personality and values
–
Sincerity, excitement, competence, …
4. History, heritage, and memorable
experiences
IMAGERY
SALIENCE
CBBE: BRAND RESPONSE
What about you?
RESONANCE
JUDGMENTS
PERFORMANCE
•
Brand judgments
1. Brand quality
–
Value, satisfaction, …
2. Brand credibility
–
Expertise, trustworthiness, likeability, …
3. Brand consideration
–
–
As a relevant solution, …
“The best solution for my situation.”
4. Brand superiority
–
Differentiation, associations, …
FEELINGS
IMAGERY
SALIENCE
CBBE: BRAND RESPONSE
What about you? [continued]
RESONANCE
JUDGMENTS
PERFORMANCE
•
Brand feelings
1.
2.
3.
4.
5.
Warmth
Fun or excitement
Security
Social approval
Self-respect
FEELINGS
IMAGERY
SALIENCE
CBBE: BRAND RELATIONSHIPS
What about you and me?
RESONANCE
JUDGMENTS FEELINGS
PERFORMANCE
•
Brand resonance
1. Behavioral loyalty
–
Frequency of repeat purchases
2. Attitude attachment
–
Strong affection, pride of ownership, …
3. Sense of community affiliation
4. Active engagement
–
Regularly involved with some aspect
IMAGERY
SALIENCE
CUSTOMER-BASED BRAND EQUITY
PYRAMID
4. RELATIONSHIPS =
RESONANCE
Intense, active, loyal
What about you & me?
3. RESPONSE =
JUDGMENTS
FEELINGS
What about you?
Rational and emotional
reactions
2. MEANING =
PERFORMANCE
IMAGERY
POD and POP
What are you?
SALIENCE
Who are you?
1. IDENTITY =
Broad awareness
HUMAN RECEIVER FOCUS
• THE PERSONALITY APPROACH
– Humans endow the brand with a human
character / personality, thus giving it
symbolism
– A prerequisite for the relational approach
– Models
• David Aaker’s Brand Equity Model – Major points
• Brand Personality [more in Section 7] and Corporate Brand
Personality
DAVID AAKER’S BRAND EQUITY
MODEL
• Brand equity is composed of distinct
categories of brand assets and liabilities.
– Brand loyalty
– Brand awareness
– Perceived quality
– Brand associations
– Other proprietary brand assets
DAVID AAKER’S BRAND EQUITY
MODEL
• BRAND LOYALTY
– Reduced [marginal] marketing expenses
– Provides trade leverage [with resellers]
– The ability to attract new customers and keep
existing ones
– Provides time to respond to competitive
threats
DAVID AAKER’S BRAND EQUITY
MODEL
• BRAND AWARENESS
– It is an anchor to which you can attach other
associations
– It is familiar
– It is an indicator of commitment to the brand
– It indicates the brand should be considered if
not already a customer
DAVID AAKER’S BRAND EQUITY
MODEL
• PERCEIVED QUALITY
– Provides a reason to buy
– Differentiates the brand and its products
– Part of the positioning
– Provides value
– Increases the interest of channel members
– Provides the opportunity for extensions
DAVID AAKER’S BRAND EQUITY
MODEL
• BRAND ASSOCIATIONS
– Help with information retrieval
– Differentiate the brand and its products
– Part of the positioning
– Provide a reason or reasons to buy
– Create positive attitude or feelings
– Provide the opportunity for brand extensions
DAVID AAKER’S BRAND EQUITY
MODEL
• BUILDING A BRAND
– Have a strong core brand identity that can be
modified for different segments and products.
– Have a strong value proposition using
emotional and intangible appeals.
– Establish strong brand positioning that links to
the brand identity.
– Great execution
• NPD, launch, product / family life cycle
DAVID AAKER’S BRAND EQUITY
MODEL
• BUILDING A BRAND
– Be consistent over time
– Use the brand leverage that has been
developed
• only participate in strong co-branding programs
– Measure and track various brand equity
elements over time
– Have a strong brand manager
– Invest in the brand
PRODUCT BRAND PERSONALITY
• Defined in user imagery
– Understand the characteristics of customers
– Utilize human traits that can be attributed to a
brand
– Customers can express their actual or desired
self-image by association with the product
CORPORATE BRAND PERSONALITY
• Defined in the actions, values, and words
of all its employees
• Supersedes any product brand personality
• Core dimensions [traits]
– Heart [passionate and compassionate]
– Mind [creative and disciplined]
– Body [agile and collaborative]
ATTENTION-GETTING vs. MEMORABLE
BILLBOARD
http://www.billboard.com/articles/events/super-bowl2015/6458193/super-bowl-2015-best-worst-commercials
PEOPLE
http://www.people.com/article/super-bowl2015-trending-commercials-list
Average number of U.S. households [115,700,000]
watching Super Bowl 49 was 49.7%
Cost of one 30-second commercial was ?
Per household that is approximately 3.9 cents.
Per person that is approximately 2.8 cents.