Session 3 Flashcards
(25 cards)
What criteria must a brand meet to qualify for Interbrand’s Top Global Brands ranking?
To qualify, a brand must:
* Derive at least a third of its earnings outside its home country
* Be recognisable beyond its base of customers
* Have publicly available marketing and financial data
Interbrand’s ranking is one among several ‘top brand’ rankings.
Which it’s the formula of the Brand Valuation Mehodology?
Financial Value * Brand Contribution = Brand Value
Which are the most valuable brands in 2024?
- Apple
- Microsoft
- Amazon
- Samsung
How does Brand Finance calculate its ranking of the world’s biggest and strongest brands?
Brand Finance values over 5,000 global brands each year, using a process flow that examines how marketing and corporate actions change a brand’s attributes (e.g., quality, availability, price, positioning). They then measure how these changes affect brand consideration and stakeholder behavior, ultimately leading to a favorable financial uplift for the brand.
Interbrand:
- Financial performance
- Role of the brand in purchase decisions
- Brand competitive strength
What else can be measured?
- Loyalty
- Value of customer “forgiveness” for mistakes
- Willingness to pay
- Measuring value by different customer groups
- Value of emotional connection
- Brand value among specific sub-groups
What other measures?
- Net Promoter Score
- Social media
- Followers
- Views, Likes, Shares
- Positive SM posts
What’s FINANCIAL Brand Equity?
Is the monetary value of a brand in terms of net revenues the brand is expected to generate over
time, across all country markets.
What’s CUSTOMER Brand Equity?
Focuses on the differential effect
of a brand on consumer response. It contains behavioral (e.g.,
loyalty) and image (e.g., affect and cognition) components.
What are the key stages and objectives in Keller’s Customer-Based Brand Equity (CBBE) Model?
Stages of Brand Development:
1. Brand Salience (Identity) – Establish deep, broad brand awareness
2. Brand Performance & Brand Imagery (Meaning)– Create strong, favorable, and unique associations
3. Consumer Judgments & Consumer Feelings (Response) – Generate positive, accessible brand responses
4. Consumer Brand Resonance
(Relationships) – Foster intense, active loyalty
What’s Brand Salience?
Brand awareness/salience is related to the strength of the brand in consumer’s memory, in other words, it’s reflects how easily and often a brand is recalled by consumers.
Depth of brand awareness
- Likelihood that a brand element comes to mind & ease
What’s Brand recall?
Consumer’s ability to retrieve the brand form memory when given the product category, the needs fulfilled by the category, a purchase or consumption situation
How do we measure Brand Salience?
- Top of Mind: The first brand recalled without prompts.
- Unaided Recall: Brands spontaneously mentioned.
- Aided Recall: Recognizing the brand from a provided list.
- Unaware: Consumers who don’t recognize the brand at all.
**Breadth **of brand awareness
Range of purchase & usage situations in which brand element comes to mind
What is Brand Performance in Keller’s CBBE model, and what are its key components?
Brand Performance measures how effectively a product or service meets customers’ functional needs.
Key components include:
* Beliefs about ingredients & features
* Reliability & durability
* Serviceability & service quality (effectiveness, efficiency, empathy)
* Style & design (size, shape, materials, etc.)
* Pricing policy (price segment, volatility)
Located in the third level of Keller’s Brand Pyramid.
Brand Imagery and Key Components
The way in which a product or service attempts to meet customer’s psycological or social needs
Key components:
1. User profiles: perceived type of person or organization that uses the brand.
2. Personality and values
3. Purchase and usage situasion: under what conditions brand typicaly bought & used.
4. History, heritage and experiences: links with events in (personal) brand history.
Located in the third level of Keller’s Brand Pyramid.
Consumer Judgements & Key Components
Customers personal opinions and evaluations of the brand, based on the different performance and imagery associations.
Key components:
1. Brand Quality – Perceived overall excellence of the brand.
2. Brand Credibility – How believable the brand is, based on:
- Expertise (competent, innovative, market leader)
- Trustworthiness (dependable, customer-focused)
- Likeability (fun, interesting, enjoyable)
3. Brand Consideration – Likelihood the brand is part of the consumer’s choice set.
4. Brand Superiority – Perception that the brand is better and more unique than others.
Located in the second-highest level of Keller’s Brand Pyramid.
Consumer Feelings & Key Components
Emotional responses and reactions with respect to a brand. How does the brand affect customers’ feelings about themselves and their relationships with others.
Key components:
1. Warmth – Soothing, calm, sentimental, affectionate feelings.
2. Fun – Upbeat, playful, light-hearted, cheerful feelings.
3. Excitement – Energized, cool, “special,” or even sexy feelings.
4. Security – Safety, comfort, self-assurance.
5. Social Approval – Positive feelings about others’ reactions.
6. Self-Respect – Pride, accomplishment, and personal fulfillment
Cunsomer Resonance & Key components
Extent to which customers feel “in sync” with the brand.
Key components:
1. Behavioral loyalty
2. Attitudinal Attachment
3. Sense of community
4. Active engagement (ambassadorshop, evangelism)
What does FINANCIAL BRAND EQUITY measures?
The monetary value of a brand.
What does Interbrand measures?
Financial performance, role of brand in purchase decisions, strength of brand vs competitors.
What are other factors of performance?
Loyalty, emotional connection, forgiveness, sub-groups vs overall population.
What does customer-based brand equity refers?
To the differential effect of a brand on consumer response.
