Customer Based Brand Equity

1. Customer Based Brand Equity Teacher – ShahedRahman Chapter 2

2. What makes a brand strong ? How do you build a strong brand? • Customer Based Brand Equity • CBBE • Built • Measured • Managed

3. The power of a brand lies in what customers have • Learned • Felt • Seen • Heard The power of a brand lies in what resides in the minds of customers

4. Customer Based Brand Equity • “The differential effect that brand knowledge has on consumer response to the marketing of that brand.” Keller, 1993

5. Customer Based Brand Equity • The differential knowledge that brand knowledge has on the marketing of that brand. • Differential • Knowledge • Response to marketing

6. Customer Based Brand Equity • Positive Customer Based Brand Equity • When customers react more favorably to a product. • Customer might be more accepting of a new brand extension • Less sensitive to a price increases • Withdrawal of advertising support • More willing to see the product in a new distribution channel.

7. Customer Based Brand Equity • Negative Customer Based Brand Equity • If consumer react less favorably to marketing activity • Compare to other unknown product in the market

9. Sources of Brand Equity • Customer based brand equity occurs • When the customer has a high level of awareness and familiarity with the brand • Holds some strong, favourable and unique associations in memory.

10. Making a Brand Strong: Brand Knowledge • Brand knowledge is the key to creating brand equity. • Brand knowledge consists of a brand node in memory with a variety of associations linked to it. • Brand knowledge has two components: • Brand awareness and • Brand image.

11. Brand Equity • Brand Awareness • Brand Recognition • Brand Recall • Advantages • Learning advantages • Consideration advantages • Choice advantages

12. Brand Image • Strength of brand associations • Brand Attributes • Brand Benefits • Favourability of brand associations Convenient, Reliable, Effective, Efficient, Colourful • Desirability • Deliverability • Uniqueness of brand associations • USP is the reason why customer should buy it • Direct comparison with competitors

13. The Four Steps of Brand Building • Ensure identification of the brand with customers and an association of the brand in customers’ minds • Establish the totality of brand meaning in the minds of consumers • Elicit the proper customer responses to the brand identification and brand meaning • Convert brand response to create an intense, active loyalty relationship between customers and the brand

14. Four Questions Customers ask of Brands • 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)

16. Sub-Dimensions of CBBE Pyramid LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT QUALITY CREDIBILITY CONSIDERATION SUPERIORITY PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY & EMPATHY STYLE AND DESIGN PRICE USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE & EXPERIENCES CATEGORY IDENTIFICATION NEEDS SATISFIED