1. BRAND MANAGEMENT AND NEW PRODUCT DEVELOPMENT SECTION 4B Brand Management and the Firm Brand Equity Models ALAN L. WHITEBREAD

2. This type of activity is usually the responsibility of the SBU not the corporate office.
[A] centralized research [B] corporate business development [C] large advanced R&D projects [D] strategic alliances
The goods-services continuum includes all except which of the following quality attributes?
[A] credence [B] experience [C] search [D] value
The augmented product ring of the product concept includes?
(A) features, packaging and styling (B) the core product or service (C) installation delivery and repair (D) A, B and C.

3. SEVEN BRAND MANAGEMENT APPROACHES
Economic
Identity
Consumer-based
Personality
Relational
Community
Cultural

4. COMPANY SENDER FOCUS THE ECONOMIC APPROACH Firm owns the brand
Manages the brand with the traditional marketing mix
Company identity helps shape a brand message
Marketer is in charge of brand value creation
Linear [broadcast] communication from marketer down to and through channels of distribution [push] to receivers
A consumer is an “economic man” passively receiving and understanding messages from the sender exactly as intended.

5. COMPANY SENDER FOCUS Economic approach – The economic man
Human behavior is rational
Humans maximize their satisfaction and/or utility [self-interest is important]
Humans have perfect market information
The exchange is an isolated event and not related to any other event
Humans have limited income which causes them to maximize the utility of their income

6. COMPANY SENDER FOCUS THE IDENTITY APPROACH
Focus is on corporate identity
Brand is integrated into all organizational levels
Organizational culture and corporate identity heavily influence the brand

7. HUMAN RECEIVER FOCUS THE CONSUMER-BASED APPROACH [CBBE]
Brand is linked to customer associations
The brand is a consumer mental construct
Focus shifts to the message receiver
The consumer is the owner of the brand
Marketer can program the consumer through brand messages

8. CUSTOMER-BASED BRAND EQUITY [CBBE] PYRAMID
RESONANCE
SALIENCE
Projecting the brand
JUDGMENTS
FEELINGS
PERFORMANCE
IMAGERY
4. RELATIONSHIPS
3. RESPONSE
2. MEANING
1. IDENTITY

9. CBBE: BRAND IDENTITY Who are you?
RESONANCE
SALIENCE
Projecting the brand
JUDGMENTS
FEELINGS
PERFORMANCE
IMAGERY
Brand salience
How often is the brand recalled?
Is it easy to recall?
What reminders are necessary?
Dimensions of brand awareness
Depth: the likelihood of recall
Breadth: the range of purchase opportunities
Beverage category hierarchy
How effective are the brand elements?
Identify and differentiate each one

10. CBBE: BRAND MEANING What are you?
RESONANCE
SALIENCE
JUDGMENTS
FEELINGS
PERFORMANCE
IMAGERY
Brand performance
Primary product and supplementary features
Product reliability, durability, and serviceability
Service effectiveness, efficiency, and empathy
Style and design
Value proposition using emotional and intangible elements [not price]

11. CBBE: BRAND MEANING What are you? [continued]
RESONANCE
SALIENCE
JUDGMENTS
FEELINGS
PERFORMANCE
IMAGERY
Brand imagery
User profiles
Demographics, psychographics, …
Purchase and usage situations
Channel, store, timing, …
Personality and values
Sincerity, excitement, competence, …
History, heritage, and memorable experiences

12. CBBE: BRAND RESPONSE What about you?
RESONANCE
SALIENCE
JUDGMENTS
FEELINGS
PERFORMANCE
IMAGERY
Brand judgments
Brand quality
Value, satisfaction, …
Brand credibility
Expertise, trustworthiness, likeability, …
Brand consideration
As a relevant solution, …
“The best solution for my situation.”
Brand superiority
Differentiation, associations, …

13. CBBE: BRAND RESPONSE What about you? [continued]
RESONANCE
SALIENCE
JUDGMENTS
FEELINGS
PERFORMANCE
IMAGERY
Brand feelings
Warmth
Fun or excitement
Security
Social approval
Self-respect

14. CBBE: BRAND RELATIONSHIPS What about you and me?
RESONANCE
SALIENCE
JUDGMENTS
FEELINGS
PERFORMANCE
IMAGERY
Brand resonance
Behavioral loyalty
Frequency of repeat purchases
Attitude attachment
Strong affection, pride of ownership, …
Sense of community affiliation
Active engagement
Regularly involved with some aspect

15. CUSTOMER-BASED BRAND EQUITY PYRAMID Rational and emotional reactions
4. RELATIONSHIPS =
Intense, active, loyal
RESONANCE
What about you & me?
3. RESPONSE =
Rational and emotional reactions
JUDGMENTS
What about you?
FEELINGS
2. MEANING =
POD and POP
PERFORMANCE
What are you?
IMAGERY
1. IDENTITY =
Broad awareness
SALIENCE
Who are you?

16. HUMAN RECEIVER FOCUS THE PERSONALITY APPROACH
Humans endow the brand with a human character / personality, thus giving it symbolism
A prerequisite for the relational approach
Models
David Aaker’s Brand Equity Model – Major points
Brand Personality [more in Section 7] and Corporate Brand Personality

17. DAVID AAKER’S BRAND EQUITY MODEL
Brand equity is composed of distinct categories of brand assets and liabilities.
Brand loyalty
Brand awareness
Perceived quality
Brand associations
Other proprietary brand assets

18. DAVID AAKER’S BRAND EQUITY MODEL
BRAND LOYALTY
Reduced [marginal] marketing expenses
Provides trade leverage [with resellers]
The ability to attract new customers and keep existing ones
Provides time to respond to competitive threats

19. DAVID AAKER’S BRAND EQUITY MODEL
BRAND AWARENESS
It is an anchor to which you can attach other associations
It is familiar
It is an indicator of commitment to the brand
It indicates the brand should be considered if not already a customer

20. DAVID AAKER’S BRAND EQUITY MODEL
PERCEIVED QUALITY
Provides a reason to buy
Differentiates the brand and its products
Part of the positioning
Provides value
Increases the interest of channel members
Provides the opportunity for extensions

21. DAVID AAKER’S BRAND EQUITY MODEL
BRAND ASSOCIATIONS
Help with information retrieval
Differentiate the brand and its products
Part of the positioning
Provide a reason or reasons to buy
Create positive attitude or feelings
Provide the opportunity for brand extensions

22. DAVID AAKER’S BRAND EQUITY MODEL
BUILDING A BRAND
Have a strong core brand identity that can be modified for different segments and products.
Have a strong value proposition using emotional and intangible appeals.
Establish strong brand positioning that links to the brand identity.
Great execution
NPD, launch, product / family life cycle

23. DAVID AAKER’S BRAND EQUITY MODEL
BUILDING A BRAND
Be consistent over time
Use the brand leverage that has been developed
only participate in strong co-branding programs
Measure and track various brand equity elements over time
Have a strong brand manager
Invest in the brand

24. PRODUCT BRAND PERSONALITY
Defined in user imagery
Understand the characteristics of customers
Utilize human traits that can be attributed to a brand
Customers can express their actual or desired self-image by association with the product

25. CORPORATE BRAND PERSONALITY
Defined in the actions, values, and words of all its employees
Supersedes any product brand personality
Core dimensions [traits]
Heart [passionate and compassionate]
Mind [creative and disciplined]
Body [agile and collaborative]

26. ATTENTION-GETTING vs. MEMORABLE
BILLBOARD
PEOPLE

27. Average number of U.S. households [115,700,000] watching Super Bowl 49 was 49.7%
Cost of one 30-second commercial was ?
Per household that is approximately 3.9 cents.
Per person that is approximately 2.8 cents.