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Chapter Two: Marcom's Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable | PDF | Brand | Brand Management
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Chapter Two: Marcom's Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable

This chapter discusses key concepts relating to brand equity and influencing consumer behavior. It defines brand equity as the value of a brand from both an organizational and customer perspective. From an organizational perspective, brand equity is measured as the revenue premium earned by branded items over unbranded equivalents. The chapter also outlines different forms of brand knowledge including awareness, recognition, recall, and brand image/associations. It discusses branding strategies such as co-branding, ingredient branding, extensions, and sub-branding. The chapter emphasizes that creating brand awareness and image alone is not enough and marketing must influence actual consumer behavior and purchases to be effective, as measured by metrics like return on marketing investment.

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Dena Rashidi
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118 views34 pages

Chapter Two: Marcom's Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable

This chapter discusses key concepts relating to brand equity and influencing consumer behavior. It defines brand equity as the value of a brand from both an organizational and customer perspective. From an organizational perspective, brand equity is measured as the revenue premium earned by branded items over unbranded equivalents. The chapter also outlines different forms of brand knowledge including awareness, recognition, recall, and brand image/associations. It discusses branding strategies such as co-branding, ingredient branding, extensions, and sub-branding. The chapter emphasizes that creating brand awareness and image alone is not enough and marketing must influence actual consumer behavior and purchases to be effective, as measured by metrics like return on marketing investment.

Uploaded by

Dena Rashidi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter Two

Marcoms Challenges: Enhancing Brand Equity, Influencing Behavior, and Being Accountable
2007 Thomson South-Western
1

Brand
A Differentiated Product is a Brand A product must satisfy two conditions to be called a brand

Thums Up, Ariel

Definition of Brand Equity


Brand Equity is Brand Value

Brand equity can be considered either from the perspective of the organization that owns it or from the vantage point of the customer.

As Brand Equity Increases

1. 2. 3. 4.

A higher market share is achieved Brand loyalty increases Premium prices can be charged The brand earns a revenue premium

Firm based perspective of brand equity


The revenue differential between a branded item and a corresponding private labeled item. Revenue premium= (volumeb)(priceb)-(volumepl)(pricepl)

A Customer-Based Perspective on Brand Equity

Two forms of Brand Knowledge


Brand Awareness
An issue of whether a brand name comes to mind when consumers think about a particular product category and the ease with which the name is evoked.

The Brand Awareness Pyramid

Brand Recognition

Aided Brand Recall

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Free (unaided) brand recall

11

Two Forms of Brand Knowledge


Brand Image

The types of associations that come to the consumers mind when contemplating a particular brand.

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Network of Brand Associations

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Network of Brand Associations


Each circle Each line
Thickness of each line Number of lines leading into a node

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Nielsen Buzz Metrics Brand Associations Concept Map (BACM)

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What does a Brand Associations Concept Map (BACM) tell you?


What thoughts (names, attributes, benefits, pictures, words, images, etc. etc.) come to your mind when presented with a brand cue? How strongly/weakly are they linked to the brand cue? Conclusions you can draw from a BACM

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Dimensions of Brand Personalities


Competence Ruggedness Excitement Sophistication Sincerity

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Illustration of a Sincere Brand

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Illustration of an Exciting Brand

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Illustration of a Competent Brand

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Illustration of a Sophisticated Brand

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Illustration of a Rugged Brand

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Branding Strategies
Leveraging the equity of an established / reputed brand name Why do you do it?

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Branding Strategies

Co-branding Ingredient branding Brand Extensions Sub-branding

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www.lovemarks.com

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www.lovemarks.com

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The Lovemark Grid


(Pawle and Cooper 2006, Journal of Advertising Research)

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Characteristics of World Class Brands


Delivers benefits consumers want Stays relevant Price equals value Good positioning Consistency

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Characteristics of World Class Brands


Fits into brand portfolio Brand uses all IMC options available to build equity Brands managers understand what the brand means to consumers Support over long run Monitoring of the sources of brand equity
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Top 10 Global Brands (2009)

www.interbrand.com

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How does Interbrand Value these brands

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Affecting Behavior and Achieving Marcom Accountability


Creating brand awareness and boosting brand image has little positive effect unless individuals make purchases or engage in some other form of desired behavior.

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ROMI
The effect of marcom, or of its specific elements such as advertising, can be gauged in terms of whether it generates a reasonable revenue return on the marcom investment. In marketing, return on investment is called return on marketing investment (ROMI)
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Choosing a Metric

Change in brand awareness Improved consumer attitude toward the brand Increased purchase intentions Larger sales volume Greater repeat sales Etc.

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