2. 2.1 CUSTOMER-BASED BRAND EQUITY CUSTOMER-BASED BRAND EQUITY

3. 2.2 Customer-Based Brand Equity “The differential effect that brand knowledge has on consumer response to the marketing of that brand.” “The differential effect that brand knowledge has on consumer response to the marketing of that brand.” Keller, 1993 Kevin Keller, Strategic Brand Management

4. 2.3 Customer-Based Brand Equity Differential effect Differential effect Differences in consumer response Differences in consumer response Brand knowledge Brand knowledge A result of consumers’ knowledge about the brand A result of consumers’ knowledge about the brand Consumer response to marketing Consumer response to marketing Choice of a brand Choice of a brand Recall of copy points from an ad Recall of copy points from an ad Response to a sales promotion Response to a sales promotion Evaluations of a proposed brand extension Evaluations of a proposed brand extension Kevin Keller, Strategic Brand Management

6. 2.5 Making a Brand Strong: Brand Knowledge Brand knowledge is the key to creating brand equity. 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 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 knowledge has two components: brand awareness and brand image. Kevin Keller, Strategic Brand Management

7. Brand name Logo Symbol Character Packaging Slogan Memorability Meaningfulness Transferability Adaptability Brand Association Leverage of Secondary Association Company Country of Origin Channel of distribution Other brands Endorser Event Awareness Meaningfulness Transferability Brand Awareness Depth Recall Recognition Brand Knowledge KNOWLEDGE EFFECTS TOOLS AND OBJECTIVES Keller’98-13 Choosing Brand Elements Breadth Purchase Consumption

8. 2.7 Sources of Brand Equity Brand awareness Brand awareness Brand recognition Brand recognition Brand recall Brand recall Brand image Brand image Strong, favorable, and unique brand associations Strong, favorable, and unique brand associations Kevin Keller, Strategic Brand Management

9. 2.8 Establishing Brand Awareness Increasing the familiarity of the brand through repeated exposure (for brand recognition) Increasing the familiarity of the brand through repeated exposure (for brand recognition) Forging strong associations with the appropriate product category or other relevant purchase or consumption cues (for brand recall) Forging strong associations with the appropriate product category or other relevant purchase or consumption cues (for brand recall)

10. 2.9 Creating a Positive Brand Image Brand Associations Brand Associations Does not matter which source of brand association Does not matter which source of brand association Need to be favorable, strong, and unique Need to be favorable, strong, and unique Marketers should recognize the influence of these other sources of information by both managing them as well as possible and by adequately accounting for them in designing communication strategies. Marketers should recognize the influence of these other sources of information by both managing them as well as possible and by adequately accounting for them in designing communication strategies.

11. 1.10 Strength of Brand Association

12. 1.11 Strength of Brand Association (Initial Associative Strength)

13. 1.12 Strength of Brand Association - Recallability (Long-Term Associative Strength)

14. 1.13 Favorability and Uniqueness of Brand Association

15. 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) Kevin Keller, Strategic Brand Management

16. 2.15 Customer-Based Brand Equity Pyramid RESONANCE SALIENCE JUDGMENTS FEELINGS PERFORMANCE IMAGERY 4. RELATIONSHIPS = What about you and me? 4. RELATIONSHIPS = What about you and me? 3. RESPONSE = What about you? 3. RESPONSE = What about you? 2. MEANING = What are you? 2. MEANING = What are you? 1. IDENTITY = Who are you? 1. IDENTITY = Who are you? Kevin Keller, Strategic Brand Management

17. Identifying With Our Customer: Consumer-Based Brand Equity Pyramid Brand Salience Consumer- Brand Resonance Consumer Judgements Consumer Feelings Brand Performance Brand Imagery 4 Intense, Active Loyalty 1 Deep Broad Brand Awareness 2 Points of Difference 3 Positive Accessible Reactions Consumer Acceptance Cycle THIS is Where the Insight Lives Kevin Keller, Strategic Brand Management

18. 4 Steps of Brand Building Customer QuestionsBrand Actions 1 WHO Are You? Brand Identity 2 WHAT Are You? Brand Meaning 3 WHAT About You? Brand Responses 4 WHAT About You AND ME? Brand Relationships Kevin Keller, Strategic Brand Management

19. Consumer-Based Brand Equity Pyramid Brand Salience Consumer- Brand Resonance Consumer Judgements Consumer Feelings Brand Performance Brand Imagery 4 Brand Relationships (WHAT About You AND ME?) 1 Brand Identity (WHO Are You?) 2 Brand Meaning (WHAT Are You?) 3 Brand Response (WHAT About You?) Kevin Keller, Strategic Brand Management

20. Consumer-Based Brand Equity Pyramid Brand Salience Consumer- Brand Resonance Consumer Judgements Consumer Feelings Brand Performance Brand Imagery 4 Intense, Active Loyalty 1 Deep Broad Brand Awareness 2 Points of Difference 3 Positive Accessible Reactions Consumer Acceptance Cycle Kevin Keller, Strategic Brand Management

21. Consumer-Based Brand Equity Pyramid Salience Resonance Judgements Feelings Performance Imagery Loyalty Attachment Community Engagement Quality Credibility Consideration Superiority Warmth, Fun Excitement, Security, Social Approval, Self-Respect 4 Brand Relationships (WHAT About You AND ME?) 1 Brand Identity (WHO Are You?) 2 Brand Meaning (WHAT Are You?) 3 Brand Response (WHAT About You?) User Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency, & Empathy Style and Design; Price Category Identification Needs Satisfied