14-01-2014, 03:19 PM
Customer based Brand equity
Customer based Brand equity.ppt (Size: 539 KB / Downloads: 18)
Brand Equity
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 the added values endowed to product or service
Concept of Customer based Brand Equity
Customer-based brand equity
Differential effect
Customer brand knowledge
Customer response to brand marketing
A brand has positive customer based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified than not.
Concept of Customer based Brand Equity
A brand has negative customer based brand equity if consumers react less favorably to marketing activity for the brand compared with an unnamed or fictitiously named version of the product.
Differential effect : brand equity arises out of differences in consumer responses.
The difference in response are a result of consumer’s knowledge about the brand, what they have learned, felt, seen and heard about the brand .
Brand equity ultimately depends on what resides on the minds of the consumers.
Making a brand strong: Brand knowledge
Brand knowledge is the key to creating brand equity, because it creates the differential effect that drives brand equity.
Brand knowledge consists of a brand node in memory with a variety of associations linked to it. (Associated network memory model)
Brand knowledge – making a brand strong
Brand image : is consumer’s perceptions about a brand as reflected by the brand associations held in consumer memory.
Brand associations for Apple computers “ User friendly, macintosh,Creative,
Eg : Mc Donald’s- Quality, service, cleanliness and value, convenience, Ronald Mc Donald,for kids
Sources of brand equity
Brand recognition :is consumer’s ability to confirm prior exposure to the brand when given the brand as a cue.
Brand recall:is the consumer’s ability to retrieve the brand from memory when given the product category, the needs fulfilled by the product category or a purchase or usage situation as a cue.
Establishing Brand awareness
Creating brand awareness means increasing the familiarity of the brand through repeated exposure.
Repetition increases reconcilability, by improving brand recall.
Creating a positive brand image takes marketing programs that link strong, favorable,and unique associations to the brand in memory.
Brand building blocks
Brand salience : measures awareness of the brand ie how often and how easily the brand is evoked under various situations or circumstances.
Breadth and depth of awareness
Depth of brand awareness : measures how likely it is for a brand elements come to mind and the ease with which it does so.
Brand performance
Describes how well the product or service meets customer’s functional needs.
Attributes which underlie brand performance
Primary ingredients and features
Product reliability, durability and serviceability
Style and design
Price
Brand judgments
They are customer’s personal opinions about and evaluations of the brand which consumers form by putting together all the different brand performance and imagery.
Judgments about quality – Brand quality
Brand credibility
Brand consideration
Brand superiority
Nature of competition
Competitive analysis considers resources, capabilities, and intentions of various other firms which helps marketers to choose markets where consumers can be profitably served.
Competition should not be narrowly defined.eg : Noncola flavoured soft drinks