Teacher – Shahed Rahman Chapter 2 Customer Based Brand Equity

What makes a brand strong ? How do you build a strong brand? Customer Based Brand Equity CBBE Built Measured Managed

The power of a brand lies in what customers have  Learned  Felt  Seen  Heard The power of a brand lies in what resides in the minds of customers

Customer Based Brand Equity “The differential effect that brand knowledge has on consumer response to the marketing of that brand.” Keller, 1993

Customer Based Brand Equity The differential knowledge that brand knowledge has on the marketing of that brand. Differential Knowledge Response to marketing

Customer Based Brand Equity Positive Customer Based Brand Equity o When customers react more favorably to a product. o Customer might be more accepting of a new brand extension o Less sensitive to a price increases o Withdrawal of advertising support o More willing to see the product in a new distribution channel.

Customer Based Brand Equity Negative Customer Based Brand Equity If consumer react less favorably to marketing activity Compare to other unknown product in the market

McDonalds Quality Service Cleanliness Value Ronald McDonald Convenient

Sources of Brand Equity Customer based brand equity occurs When the customer has a high level of awareness and familiarity with the brand Holds some strong, favourable and unique associations in memory.

Making a Brand Strong: Brand Knowledge Brand knowledge is the key to creating brand equity. Brand knowledge consists of a brand node in memory with a variety of associations linked to it. Brand knowledge has two components: Brand awareness and Brand image.

Brand Equity Brand Awareness Brand Awareness Brand Recognition Brand Recall Advantages Learning advantages Consideration advantages Choice advantages

Brand Image Brand Image Strength of brand associations Brand Attributes Brand Benefits Favourability of brand associations Convenient, Reliable, Effective, Efficient, Colourful Desirability Deliverability Uniqueness of brand associations USP is the reason why customer should buy it Direct comparison with competitors

2.13 The Four Steps of Brand Building 1. Ensure identification of the brand with customers and an association of the brand in customers’ minds 2. Establish the totality of brand meaning in the minds of consumers 3. Elicit the proper customer responses to the brand identification and brand meaning 4. Convert brand response to create an intense, active loyalty relationship between customers and the brand

2.14 Four Questions Customers ask of Brands 1. Who are you? (brand identity) 2. What are you? (brand meaning) 3. What about you? What do I think or feel about you? (brand responses) 4. What about you and me? What kind of association and how much of a connection would I like to have with you? (brand relationships)

Sub-Dimensions of CBBE Pyramid LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT QUALITY CREDIBILITY CONSIDERATION SUPERIORITY WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT CATEGORY IDENTIFICATION NEEDS SATISFIED PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY & EMPATHY STYLE AND DESIGN PRICE USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE & EXPERIENCES