Dr.

Ayman Shawky
• These are the basic products that a customer needs in order to satisfy their need or
want. For example, a customer may need a car to get from point A to point B. The
core product of a car is transportation.

• These are products that are similar to other products in the market. For example, a
generic car is a car that is like all other cars on the market. It has four wheels, an
engine, etc.
• These are products that meet the customer’s expectations. For example, a
customer may expect a car to have a certain level of safety, reliability, and
comfort.

• These are products that exceed the customer’s expectations. For example, a
customer may not expect a car to have GPS, heated seats, or a sunroof.
•
• These are products that the customer has not even thought of yet. For
example, a customer may not even know that cars can have GPS, heated
seats, or a sunroof.
•

•
1) It helps marketers understand how customers make purchase decisions.
2) It helps marketers create products and services that meet the needs and
expectations of their target consumers.
3) It helps marketers segment their markets and target their marketing efforts.
4) It helps marketers position their products and services in the marketplace.
5) It provides a framework for understanding the customer’s journey from
awareness to purchase.
❑Segment your market: By understanding the different levels of customer
needs, you can segment your market and target your marketing efforts.

❑Create products and services that meet customer needs: By understanding all
five levels of customer needs, you can create products and services that meet
the needs and expectations of your target consumers.
❑Position your products and services in the marketplace: By understanding
how customers make purchase decisions, you can position your products and
services in the market.
❑Understand the customer’s journey: By understanding all five levels of
customer need, you can create a map of the customer’s journey from
awareness to purchase.
❑Use Kotler’s Model as a framework for understanding customer value: By
understanding all five levels of customer need, you can create a framework
for understanding customer value.
• A phone that makes calls, sends texts, and takes pictures.

• : A smartphone that has a touch screen, app store, and internet capabilities.

• : A smartphone that is sleek, easy to use, and has an excellent camera.

• Augmented Level Products: A smartphone that has a fingerprint reader, facial recognition, and
augmented reality features.

• Potential Level Products: A smartphone that can be used as a virtual reality headset, a payment
device, and a health tracker.
 2. Nike Sneakers
• Core Level Product: A pair of shoes that are comfortable and provide support while you are walking or
running.

• Generic Level Products: A pair of sneakers that are available in different colors and styles.

• Expected Level Products: A pair of sneakers that are comfortable, stylish, and provide support while you
are walking or running.

• Augmented Level Products: A pair of sneakers that are comfortable, and stylish, provide support while you
are walking or running, and come with Nike+ membership.

• Potential Level Products: A pair of sneakers that are connected to the internet and provide real-time
feedback on your performance.
 3. Ford Car
• Core Level Product: A car that gets you from point A to point B.

• Generic Level Products: A car that is available in different colors and styles.

• Expected Level Products: A car that is reliable, safe, and has a comfortable ride.

• Augmented Level Products: A car that is reliable, safe, has a comfortable ride and comes with
Ford’s SYNC system.

• Potential Level Products: A car that can drive itself, is connected to the internet, and can be used
as a mobile office.
 4. Amazon Kindle
• Core Level Product: An e-reader that allows you to read books electronically.

• Generic Level Products: An e-reader that is available in different colors and styles.

• Expected Level Products: An e-reader that is lightweight, has a long battery life and has a clear
display.

• Augmented Level Products: An e-reader that is lightweight, has a long battery life, has a clear
display, and comes with a free Amazon Prime membership.

• Potential Level Products: An e-reader that is connected to the internet and allows you to read
books electronically and listen to audiobooks.
 5. Starbucks coffee
• Core Level Product: A cup of coffee that is brewed fresh and has a rich flavor.

• Generic Level Products: A cup of coffee that is available in different flavors and sizes.

• Expected Level Products: A cup of coffee that is brewed fresh, has a rich flavor and is made with
high-quality beans.

• Augmented Level Products: A cup of coffee that is brewed fresh, has a rich flavor, is made with
high-quality beans, and comes with free refills.

• Potential Level Products: A cup of coffee that is connected to the internet and allows you to
customize your order.
 Brand Equity Dimensions

Brand equity has four dimensions

• brand loyalty,
• brand awareness,
• brand associations and
• perceived quality
each providing value to an organization in different ways.
 Brand Equity Dimensions

• Brand loyalty turns devoted customers into brand advocates, leading to repeat
purchases and positive reviews.
• Brand awareness plays a significant role in the customer decision-making journey.
Well-known brands have elements that are easy to recall – like their name and logo.
• Brand associations relate to how distinctive your brand is within your product
category and the value it offers customers.
• Perceived quality is a perception a customer builds based on numerous
experiences with your brand. From design to customer service, each interaction can
impact the perceived value of your product or service.
 Types of Brand Equity Models

• Aaker’s Brand Equity Model emphasises brand equity as a set of brand assets and
liabilities, defining brand equity through brand awareness, perceived quality, brand
associations and brand loyalty.
• Keller’s Customer-Based Brand Equity Model focuses on consumer perceptions
and attitudes towards a brand, examining brand knowledge, brand image, brand
awareness and brand loyalty.
• The Brand Asset Valuator measures a brand’s strength based on brand
differentiation, relevance, esteem and knowledge.
• BrandZ, developed by Kantar Millward Brown, assesses brand value through
analysis and consumer research.
• Aaker’s and Keller’s models are widely recognised for comprehensively
assessing brand equity, focusing on dimensions such as brand awareness,
associations and loyalty. While the Brand Asset Valuator and BrandZ models
are less known, they may offer more tailored insights depending on your
industry and organisational goals.
 How to use the Aaker Model

• Brand loyalty
In this component, an organisation would measure the support that a customer has
towards their brand.
Strong brand loyalty has many benefits in the marketplace, including maintaining
customers and reducing marketing costs.
An example would be why one customer prefers shopping at a particular
supermarket over another.
An organization would tap into these preferences as an advantage over their
competitors, who may need help convincing loyal customers to switch brands.
 Brand awareness

• Establishing good brand awareness involves assessing the degree to which

the target audience recognizes and recalls a brand.
• A company demonstrates strong brand awareness when a significant portion
of the local population recognizes its name and knows its offerings.
• This recognition not only fosters a positive perception of the brand but also
instils a sense of confidence in customers, influencing their decision to
choose products or services from that particular company.
 Perceived quality

• Perceived quality can help companies differentiate themselves from their

competitors.
• For example, a company that sells a higher-priced version of an item may
have more perceived quality than one that sells the same item at a lower
price.
• Perceived quality can also apply to attributes like service and reliability.
• A brand’s perceived quality can lead customers to view the company as
consistent, which gives them a reason to purchase its products or services.
 Brand associations

• Brand associations involve assessing the connections customers have with a

brand.
• These connections encompass information gathered about the company,
often through advertising and emotional responses to the brand.
• A brand with strong brand association can be exemplified by the positive
feelings a customer experiences upon hearing the company’s name.
 Proprietary assets

• In the Aaker model, the last element of brand equity is proprietary assets,
denoting a brand’s intangible possessions such as patents, trademarks,
copyrights, or intellectual property rights.
• Cultivating these proprietary assets gives companies a competitive edge,
amplifying brand equity.
• By following the Aaker Model in some capacity, organisations can clarify
branding tasks and discover and understand certain brand elements.
 Keller’s Model

• The Keller Model asserts that to build a strong brand, you must shape how
customers think and feel about your product. Also known as the Customer-
Based Brand Equity Model (CBBE model), it was developed by Professor
Kevin Lane Keller.
• Through this model, Keller illustrates the journey of customers’ relationships
with brands – from recognition at the bottom to resonating with the brand at
the peak. The four steps of the pyramid represent four fundamental
questions that your customers will ask – often subconsciously – about your
brand.
Keller’s Model
 Keller’s Model
• Brand identity – This segment reflects people’s general awareness of a brand. It serves as
the crucial initial stage in establishing customer brand equity.
• Brand meaning – The second tier is divided into performance and imagery. Performance
encompasses your products or services’ tangible features and capabilities, while brand
imagery delves into the perceptions evoked when individuals encounter your brand.
• Brand response – The third tier is divided into judgment and feelings. Both aspects relate
to the emotional and evaluative aspects of how individuals perceive a brand, positively or
negatively influencing outcomes.
• Resonance – At this phase, customers transcend brand awareness and transactional
engagement as they evolve into advocates for your brand.
 How To Use The Keller Model

• Using the Keller Model, there are four steps your business must take to move
up the pyramid to achieve resonance status. While the Aaker model uses
loyalty to build brand equity, The Keller model focuses more on emotions to
achieve this outcome.
 Step 1 – Who are you?

When people have not heard or seen a product or service, it isn’t easy to sell, so the first step for a
brand is to build a strong identity. Using the Keller model, organisations should:
• Create awareness and identity
1) Establish awareness for the brand to facilitate product sales.
2) Develop a robust brand identity to leave a lasting impression.
3) Craft a consistent, clear depiction of the brand’s identity.
• Engage with tailored marketing.
1) Engage customers through tailored marketing campaigns.
2) Use advertisements to raise awareness and make a lasting impact.
 Step 1 – Who are you?

• Research target audience

1) Conduct thorough research on the target audience.
2) Understand customer preferences and decision-making processes.
• Ensure clarity and consistency.
1) Provide a clear, consistent and accurate portrayal of the brand’s identity.
2) Once you have established this, your awareness efforts must be consistent
across all channels you market.
 Step 2 – What are you?

• As customers familiarise themselves with your brand, the crucial step is

communicating its essence, performance and value. Emphasise:
• Reliability,
• Service quality,
• Durability,
• Style and,
• Affordability.
 Step 2 – What are you?

• To connect on a social and psychological level, employ diverse marketing

strategies, including direct promotion, customer testimonials and social
proof to demonstrate how your brand meets customer needs.
• If your product aligns with the promises made in brand awareness
campaigns, positive experiences follow, propelling customers up the brand
equity pyramid. However, failing to meet expectations may result in customer
disengagement. This is why authenticity is pivotal for fostering loyalty and
long-term relationships in customer-based brand equity.
 Step 3 – What do I think about you?

• In this stage, a brand response is obtained, which can either be a feeling or a

judgment about a product or service.
• Positive reactions: Exceptional experiences lead to intense emotional connections.
Satisfied customers become brand advocates, spreading positive word-of-mouth.
• Negative reactions: Disappointing experiences result in negative judgments.
Unhappy customers may become brand detractors, expressing criticism on social
platforms.
• It is imperative for companies to closely monitor customer responses, fostering
positive feelings and building a loyal brand following.
 Step 3 – What do I think about you?

• According to Keller’s brand equity model, the six positive brand feelings that companies should aspire to
include:
• Warmth
• Fun
• Excitement
• Security
• Social approval
• Self-respect
• Although a brand may not evoke every listed emotion, it should prioritise eliciting at least one, ensuring that
customers experience that particular emotion when they engage with or contemplate the brand.
 Step 4 – What is the association with you?

• At this level, unquestionably the most difficult to achieve, customers have formed a
deep and unbreakable emotional connection with a brand. In Keller’s model, he
breaks this association (resonance) into four categories: behavioural loyalty,
attitudinal attachment, sense of community and active engagement.
• Ask yourself what you can do to reward customers who are champions of your
brand. Examples are incentives like reward points, exclusive experiences and
membership cards.
• By using the Keller Model, companies can comprehend their brand’s intrinsic value
and strengths while pinpointing areas that may benefit from improvement.
 Brand Asset Valuator (BAV) Model

• The Brand Asset Valuator, or BAV, is a model designed to measure an entity’s

value and a brand’s strength. It is not intended to measure the success or
failure of branding efforts but to measure essential branding factors while
determining your organisation’s strengths and weaknesses. It was designed by
Young & Rubicam, an American marketing and advertising agency.
 Brand Asset Valuator (BAV) Model

• BAV presents key metrics indicating the effectiveness of a business’s

marketing efforts, showcasing its market position and perceived value. As a
valuable tool, the BAV model enables enterprises to assess brand perception,
competitor comparison and opportunities for performance enhancement
through insights derived from consumer preferences.
 How To use the BAV Model

• The BAV model evaluates brands based on four key dimensions:

• Differentiation: The brand’s individuality and exclusivity in comparison to its rivals.
• Relevance: The brand’s alignment with the desires and goals of its intended
audience.
• Esteem: The perceived quality and the brand’s reputation encompassing its
dependability and the value it offers for the money.
• Knowledge: The degree to which consumers are familiar with and comprehend the
brand, its offerings and its core values.
 These dimensions fall into two broad
categories:
• Brand vitality: How much potential does the brand have for growth today
and in the future?
• Brand stature: The power of a brand and its current value.

❖To determine where a brand falls into these categories, there are three
steps to using the BAV model: collecting data, plotting the results and
interpreting the insights.
 Step 1: Collecting data

• Initiate the brand evaluation process by gathering data on how your target
audience views your brand and competitors across the four dimensions of
the BAV model. Employ surveys, interviews, focus groups, or other research
methods to measure differentiation, relevance, respect, admiration, familiarity
and awareness. Pose similar questions about your main competitors to
benchmark your brand against them.
 Step 2: Plotting the results

• In the second step, plot the data results on a graph showcasing the BAV
model’s four dimensions. The horizontal axis denotes differentiation and
relevance, while the vertical axis signifies esteem and knowledge. Each brand
is represented by a point, with point size indicating market share. The graph
categorises brands into four quadrants: new, focused, leader and eroded,
based on their positioning across these dimensions.
 Step 3: Interpreting the insights

• The third step is to interpret the insights from the graph and use them to
inform your brand strategy. You can see where your brand stands in relation
to your competitors and how it can move from one quadrant to another.
• New quadrant: Enhance your standing by communicating your value proposition,
fostering trust, and increasing awareness to boost your relevance, esteem and
knowledge.
• Focused quadrant: Sustain your distinctiveness and relevance while elevating
esteem and knowledge through fortifying your strengths, delivering quality and
extending your reach.
• Leader quadrant: Secure your position and steer clear of complacency by
innovating, adapting, and engaging with your customers.
• Eroded quadrant: Consider revitalising your brand and reclaiming differentiation
through strategic repositioning, rebranding, or relaunching.
Brand Asset Valuator (BAV) Model
 The Brand Z Model

• The BrandZ model, created by marketing research consultants Millward Brown and
WPP, highlights the significance of being meaningfully different as the cornerstone
for constructing a potent and valuable brand. This model collects data through
interviews and publicly available sources, posing questions to consumers about
familiar brands. It is a tool for diagnosing and predicting brand equity.
• The model is structured around five sequential steps, each building upon the
preceding one and intended to be executed in a specific order. Completing each step
is a prerequisite for advancing to the next. The objectives at each step, in ascending
order, are as follows:
 The Brand Z Model

• Presence: Do I know about it?

Relevance: Does it offer me something?
Performance: Can it deliver?
Advantage: Does it offer something better than others?
Bonding: Nothing else beats it.
The Brand Z Model
 The Brand Z Model

• Consumers at the top of the pyramid, termed bonded consumers, build

stronger relationships with the brand and allocate a higher portion of their
category expenditures than those at lower levels. Although more consumers
are typically found at the lower levels, marketers face the challenge of
creating initiatives and programs to facilitate their ascent up the pyramid.
 The Importance of Brand Equity Models

• Following a brand equity model is important as it ensures focus at every

stage of the brand journey, from defining and refining the brand strategy to
guiding effective development and guaranteeing accurate implementation of
marketing strategies.
• This presentation has shown how consumers shape their brand perceptions
through diverse experiences, trials, and advertisements by brand owners.
However, successful brand building requires more than chance—it demands
discipline and a structured framework.
• Brand associations The degree of awareness that a brand holds within its product category
(think Coca-Cola in the soft drink category)
• Brand loyalty: The level of allegiance a customer shows toward a brand.
• Brand awareness: The degree to which a brand is well-received in the market, considering
the public’s familiarity with the brand.
• Perceived quality: The perception of a product or service and its quality in customers’
eyes.
• Proprietary assets: The number of patents, intellectual property rights, trademarks and
other proprietary assets owned by a brand (think Nike and the ‘Swoosh’ or Apple and Touch
ID)
 2 Major Dimensions Of Brand Asset
Valuator Model (BAV Model)
• The four determinants of the brand asset valuator model can be categorized
into two major dimensions: brand vitality and brand stature. Let’s look at it in
detail:
 Brand vitality

Brand Vitality = Differentiation + Relevance = Brand Strength

• Brand vitality includes two determinants, differentiation, and relevance, which
come out as brand strength. It is the future potential, which comes only when
the product is unique and relevant to the customer.
 Differentiation
• shows the differentiation level between your service and the product with others
delivering the same.
• The first and foremost thing any brand has to develop is a distinction from all the
existing providers in the market.
• Consumers will be questioned regarding the brand, and their attention will be
observed, whether they are able to recognize it, if yes then how they differentiate it
from others.
• Any business will fade and never grow if it does not have any differentiation.
 Relevance
• Shows whether your deliverables, which can be either a product, a service, or
both, are able to connect with customers’ demand.
• People have their preferences according to the price and their convenience.
• Does your business provide customers with what exactly they want and
meet their expectations?
• The market penetration also affects relevancy and differentiation.
 Brand Stature

• Brand Stature = Esteem + Knowledge = Brand Performance

• Brand stature includes esteem and knowledge, which shows the current
condition and position of any commodity and service. It can also be an
indicator of the brands’ past performance and future scope.
 Esteem
• Shows the perceived quality and popularity of any brand as per the selection
and preferences of the users.
• This one traces whether the brand keeps up with its quality and gives the
same assurance while taking different actions.
• Nowadays, to capture popularity and increase brand visibility, social media
marketing, SEO, and content marketing are practiced mainly by businesses.
But again, popularity and quality determine up to what level the consumer
holds on the brand.
 Knowledge
• This is the state where all the brands want to stand.
• Knowledge here means that the market and users are highly aware of the
givings and are able to identify and differentiate them quickly.
• When the stage of differentiation and relevancy is cleared, it results in high
esteem.
• Combining, all the buyers get the required knowledge, making any business a
famous brand.
 Evaluation : The Power Grid Of Brand
Asset Valuator Model
• A comparative view of the strengths and the flaws will be obtained by the power grid.
• That can moreover be termed as the pillar patterns as it depicts the collective results of all
four determinants.
• The grid view helps clarify what impact the strategies applied are creating and which are
needed to be replaced.
• The brand progress cycle can be supervised to keep it moving ahead. As the below picture
shows, the grid has four quadrants, brand vitality stands on the vertical axis, and the
horizontal one shows brand stature.
➢ Each quadrant is described below: