1. CHAPTER 2: CUSTOMER-BASED BRAND EQUITY

2. Customer-Based Brand Equity
“The differential effect that brand knowledge has on consumer response to the marketing of that brand.”
Keller, 1993 12

3. Customer-Based Brand Equity

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

6. 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
brand image.

7. Sources of Brand Equity
Brand awareness
Brand recognition
Brand recall
Brand image
Strong, favorable, and unique brand associations 7 7

8. Brand Recognition

9. Anyone remembers the slogan?
Brand Recall
Anyone remembers the slogan?

10. Brand Awareness Advantages
Learning advantages
Register the brand in the minds of consumers
Consideration advantages
Likelihood that the brand will be a member of the consideration set
Choice advantages
Affect choices among brands in the consideration set

11. Establishing Brand Awareness
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)

13. Creating a Positive Brand Image
Brand Associations
Does not matter which source of brand association
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.

16. Brand Associations

17. Points-of-Parity & Points-of-Difference
Points-of-difference (PODs) are attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand.
Points-of-parity associations (POPs), on the other hand, are not necessarily unique to the brand but may in fact be shared with other brands.

18. Points of Difference Associations
A host of PODs are possible including
Functional Design
Key Attributes
Key Ingredients
Key Endorsers

19. Key Ingredients

20. Key Attributes

21. Key Endorsers

22. Functional Design

23. Points of Parity Associations
Category Points of Parity
E.g. ATM Machines for banks
Competitive Points of Parity
E.g. Glazed selling coffee
Correlational Points of Parity
E.g. Luxury service in a budget airline

25. Choosing POPs & PODs Desirability criteria (consumer perspective)
Personally relevant (is it important to the customer?)
Distinctive and superior (is it better than existing options?)
Believable and credible (Does it seem possible?)
Deliverability criteria (firm perspective)
Feasible (Can we do it?)
Profitable (Will I make business?)
Pre-emptive, defensible, and difficult to attack (Is it competitive?)

26. Straddle Positions
The Straddle Positioning is one of the positioning strategy adopted by the marketers to position their product in two categories simultaneously.
The dual positioning of Dominos, product attributes as well as desirable benefits. The product attributes (POP) means providing the fresh pizza and the desirable benefit (POD) are the home delivery that it offers.

27. Straddle Positions
E.g. Subway Sandwiches positioned as offering healthy , good tasting sandwiches . This positioning allows the brand to create a POP on taste and a POD on health with respect to quick serve restaurants such as Mcdonald’s and , at the same time , a POP on health and a POD on taste with respect to health food restaurants .
Straddle positioning allows brands to expand their market coverage and potential customer base .

28. Brand Mantras
A brand mantra is a short 3-5 word phrase that captures the spirit of a brand.
An articulation of the “heart and soul” of the brand
similar to “brand essence” or “core brand promise”
Considerations
Communicate
Simplify
Inspire

29. Brand Mantras