2: Customer-Based Brand Equity and Brand Positioning Flashcards
What is customer-based brand equity?
The differential effect that brand knowledge has on customer response to the marketing of that brand.
What are the marketing advantages of
strong brands
Improved perceptions of product performance
Greater loyalty
Less vulnerability to competitive marketing actions
Less vulnerability to marketing crises
Larger margins
More inelastic consumer response to price increases
More elastic consumer response to price decreases
Greater trade cooperation and support
Increased marketing communication effectiveness
Possible licensing opportunities
Additional brand extension opportunities
What does customer knowledge drives?
It drives the differences that manifest themselves in terms of brand equity:
– Provides marketers with a vital strategic bridge from
their past to their future
– The brand knowledge that marketers create over time dictates appropriate and inappropriate future directions for the brand
How to make brand strong?
From the perspective of the CBBE concept, brand
knowledge is the key to creating brand equity:
– It creates the differential effect that drives brand equity
• Marketers need an insightful way to represent how brand
knowledge exists in consumer memory
What is an associative network memory model?
Views memory as a network of nodes and connecting
links:
▪ Nodes—Represent stored information or concepts
▪ Links—Represent the strength of association
between the nodes
• Brand associations are informational nodes linked to the
brand node in memory
Which 2 components does brand knowledge have?
Brand awareness:
▪ Related to the strength of the brand node or trace in
memory
▪ Often a step in building brand equity
▪ Often come into play
– Brand image:
▪ Consumers’ perceptions about a brand, as reflected
by the brand associations held in consumer memory
What are the 2 sources of brand equity?
- brand awareness
- brand image
What are the advantages of brand awareness?
– Learning advantages – Consideration advantages – Choice advantages: ▪ Consumer purchase motivation ▪ Consumer purchase ability ▪ Consumer purchase opportunity
What is brand awareness?
• Anything that causes consumers to experience one of a brand’s element can increase familiarity and awareness of that brand element:
– Name, symbol, logo, character, packaging, or
slogan, including advertising and promotion,
sponsorship and event marketing, publicity and
public relations, and outdoor advertising
• Repetition increases recognizability:
– But improving brand recall also requires linkages in
memory to product aspects
What is brand image?
Takes marketing programs that link strong, favorable,
and unique associations to the brand in memory
What are the types of brand associations for brand image?
Strength of Brand Associations
More deeply a person thinks about product information and relates it to existing brand knowledge, stronger is the resulting brand association
2. Favorability of Brand Associations
Is higher when a brand possesses relevant attributes and benefits that satisfy consumer needs and wants
3. Uniqueness of Brand Associations
– “Unique selling proposition” of the product
– Provides brands with sustainable competitive
advantage
What are the components for identifying and establishing brand positioning?
- Basic Concepts
- Target Market
- Nature of Competition
- Points-of-Parity and Points-of-Difference
What is brand positioning?
the act of designing the company’s offer and image so
that it occupies a distinct and valued place in the target customers’ minds
What criterias for identifying segmentation bases?
- Identifiability
- Size
- Accessibility
- Responsiveness
What is POP and POD?
Points-of-difference (PODs):
– Formally defined as attributes or benefits that
consumers strongly associate with a brand
Points-of-parity associations (POP):
– Not necessarily unique to the brand but may be
shared with other brands
