psu - global brand management - alain hutinel 1 part ii defining and evaluating brand equity and...

PSU - Global Brand Management - Alain Hutinel

1

Part IIPart II

Defining and evaluating Brand Equity and Brand Strength

Defining Brand Identity


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EVALUATING THE EVALUATING THE BRAND STRENGTH BRAND STRENGTH

ON THE MARKETON THE MARKET

From Motivationist Marketing From Motivationist Marketing Models Models

toto

Brand Strength & Brand Brand Strength & Brand EquityEquity


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Motivationist models inputsMotivationist models inputs

Favorability of Attitudes with Favorability of Attitudes with the brand namethe brand name

Familiarity with the brand nameFamiliarity with the brand nameImage profile Image profile Perceptual mapsPerceptual mapsPreference Preference Behavorial models Behavorial models


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Favorability of Attitudes Favorability of Attitudes and Degree of Familiarityand Degree of Familiarity

Attitudes++ - -

Familiarity

++

--

Brand C

Brand B

Brand A

Brand D

Is this everpossible ????!!


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Image profile of the brandImage profile of the brand

Criteria 1

Criteria 2

Criteria 3

Criteria ... n

+++ - - -A B C

Brand+

Product


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Perceptual mapsPerceptual maps

A car prestigious to ownHigh

Low

A financiallyeffective car

Low High

* Mercedes

BMW*

* Jaguar

Toyota(Lexus)*

* Alfa

*Volvo

Honda(legend)*

* Audi*Saab

Prestige cars among managers


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Preference ModelsPreference Models

100 %

70%

25%

15%

0

Knowers 15% 0

NonKnowers

Preferers

Indifferents

Rejectors


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Behavorial modelsBehavorial modelsBrand A Brand B

Aware PositiveTriersSatisfied

Repurchase

Total market Which is strongest ???


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We are looking forWe are looking forBrand Strength &/or EquityBrand Strength &/or Equity

==Brand Capacity Brand Capacity

toto create Meanings and create Meanings and

Added ValueAdded Value


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EVALUATING BRAND EVALUATING BRAND STRENGTH &/or EQUITYSTRENGTH &/or EQUITY

1) What we must know1) What we must know2) On what criteria is Brand 2) On what criteria is Brand

strength measured ?strength measured ?3) Where do we stand in the 3) Where do we stand in the

brand building continuum ?brand building continuum ?


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2 approaches : 2 approaches : Keller & Aaker (+ Hutinel)Keller & Aaker (+ Hutinel)

Customer approach : KellerGeneral « Market » approach : Aaker


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Customer Based Brand EquityCustomer Based Brand Equity

ACCORDING TO KELLER


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Motivation forMotivation forCustomer-Based Brand Equity Customer-Based Brand Equity

ModelModelMarketers know strong brands are

important but aren’t always sure how to build one.

CBBE model was designed to be …– comprehensive – cohesive – well-grounded – up-to-date– actionable


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Rationale of Rationale of Customer-Based Brand Equity Customer-Based Brand Equity

ModelModel Basic premise: Power of a brand resides in

the minds of customers Challenge is to ensure customers have the

right types of experiences with products & services and their marketing programs to create the right brand knowledge structures:– Thoughts– Feelings– Images– Perceptions– Attitudes


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Building Building Customer-Based Brand Customer-Based Brand

EquityEquity Building a strong brand involves a series of

steps as part of a “branding ladder” A strong brand is also characterized by a

logically constructed set of brand “building blocks.”– Identifies areas of strength and weakness– Provides guidance to marketing activities


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CUSTOMER-BASED BRAND EQUITY PYRAMID

RESONANCE

SALIENCE

JUDGMENTS FEELINGS

PERFORMANCE IMAGERY

4. RELATIONSHIPS =

What about you & me?

4. RELATIONSHIPS =

What about you & 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?


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Salience DimensionsSalience Dimensions

Depth of brand awareness– Ease of recognition & recall– Strength & clarity of category

membership

Breadth of brand awareness– Purchase consideration– Consumption consideration


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Performance DimensionsPerformance Dimensions

Primary characteristics & supplementary features

Product reliability, durability, and serviceability

Service effectiveness, efficiency, and empathy

Style and design

Price


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Imagery DimensionsImagery Dimensions User profiles

– Demographic & psychographic characteristics– Actual or aspirational– Group perceptions -- popularity

Purchase & usage situations– Type of channel, specific stores, ease of purchase– Time (day, week, month, year, etc.), location, and context of

usage

Personality & values– Sincerity, excitement, competence, sophistication, &

ruggedness

History, heritage, & experiences– Nostalgia– Memories


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Judgment DimensionsJudgment Dimensions Brand quality

– Value– Satisfaction

Brand credibility– Expertise– Trustworthiness– Likability

Brand consideration– Relevance

Brand superiority– Differentiation


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Feelings DimensionsFeelings DimensionsWarmthFunExcitementSecuritySocial approvalSelf-respect


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Resonance Dimensions Resonance Dimensions Behavioral loyalty

– Frequency and amount of repeat purchases

Attitudinal attachment– Love brand (favorite possessions; “a little pleasure”)– Proud of brand

Sense of community– Kinship– Affiliation

Active engagement– Seek information– Join club– Visit web site, chat rooms

Customer-Based Brand Equity Model

Consumer-BrandResonance

Brand Salience

Consumer Judgments

Consumer Feelings

BrandPerformance

BrandImagery

INTENSE, ACTIVE LOYALTY

INTENSE, ACTIVE LOYALTY

RATIONAL & EMOTIONAL REACTIONS

RATIONAL & EMOTIONAL REACTIONS

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

POINTS-OF-PARITY &

POINTS-OF-DIFFERENCE

DEEP, BROAD BRAND

AWARENESS

DEEP, BROAD BRAND

AWARENESS

Sub-Dimensions of CBBE Pyramid

LOYALTYATTACHMENTCOMMUNITYENGAGEMENT

QUALITY CREDIBILITYCONSIDERATIONSUPERIORITY

WARMTHFUNEXCITEMENTSECURITYSOCIAL APPROVALSELF-RESPECT

CATEGORY IDENTIFICATIONNEEDS SATISFIED

PRIMARY CHARACTERISTICS &SECONDARY FEATURES

PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY

SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY

STYLE AND DESIGN PRICE

USER PROFILESPURCHASE & USAGE

SITUATIONSPERSONALITY &

VALUESHISTORY, HERITAGE, & EXPERIENCES

Application:Application:Identify the key drivers of brand equityIdentify the key drivers of brand equity

0.17 0.66

0.24

0.65

P-2

P-2

PerformancePerformance

P-1P-1

P-10 P-10

P-7

P-7

P-8P-8

P-9P-9

P-3

P-3

P-4P-4

P-6P-6

P-5P-5

P-11 P-11 P-

12

P-12

I-2I-2

I-9I-9

ImageryImagery

I-1I-1

I-3I-3

I-6I-6

I-5I-5

I-10 I-10

I-7I-7

I-8I-8

I-11

I-11 I-12

I-12

I-4I-4

F-2

F-2

FeelingsFeelings

F-1F-1

F-3

F-3

F-4F-4

F-6F-6

F-5F-5

F-7

F-7

F-8F-8

F-9F-9

F-11 F-11 F-

12

F-12

F-10F-10

J-2J-2

JudgmentJudgment

J-1J-1

J-3J-3

J-4J-4

J-6J-6

J-5J-5

J-10J-10

J-7J-7

J-8J-8

J-9J-9

J-11

J-11 J-12

J-12

R-2R-2

ResonanceResonance

R-1

R-1

R-3

R-3

R-4R-4

R-6

R-6

R-5R-5

R-10 R-10

R-7

R-7

R-8

R-8

R-9R-9

R-11

R-11 R-1

2R

-12

0.58

0.49


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We are looking forWe are looking forBrand StrengthBrand Strength

==Brand Capacity Brand Capacity

toto create Meanings and create Meanings and

Added ValueAdded Value


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General « Market » ApproachGeneral « Market » Approach

ACCORDING TO AAKER … & HUTINEL


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LOYALTYLOYALTY

AWARENESAWARENESSS

QUALITYQUALITYIMAGE & IMAGE & ASS.ASS.

PROPERTYPROPERTY

BRANDBRANDSTRENGTHSTRENGTH

(EQUITY)(EQUITY)

VALUE VALUE FOR FOR THE THE

COSTUMECOSTUMERR

VALUEVALUEFOR THEFOR THEFIRMFIRM

PREFERENCE


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BrandBrand preference preference If a customer / prospect is interested If a customer / prospect is interested

by the product price, or it’s by the product price, or it’s caracteristics or usage etc... and is not caracteristics or usage etc... and is not convinced in the convinced in the Brand’sBrand’s advantage, advantage, then the then the Brand preferenceBrand preference is weak and is weak and the Brand added value also weakthe Brand added value also weak.

IntensityIntensity of Brand Preference of Brand Preference Probably the best measurement of Probably the best measurement of attitudinal «strength» towards the attitudinal «strength» towards the brand, of brand loyalty and of brand brand, of brand loyalty and of brand value to the individual costumer as value to the individual costumer as well as to the firm.well as to the firm.


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McDo

5F ( 70 cents) - Hamburger at any time


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Awareness +Awareness +

What is it ?What is it ? - T.O.M- T.O.M - Spontaneous- Spontaneous - Aided- Aided

+ ..... ? + ..... ?

+ Saliency+ Saliency - connotations- connotations - familiarity- familiarity - perceived value- perceived value - activeness- activeness - esteem- esteem - powerpower - notoriousness/- notoriousness/ - reputation- reputation


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The Image of the Brand The Image of the Brand

ItselfItself Definition :Definition :

« All « All associations associations suggested by the suggested by the Brand »Brand »

++ respectrespect trustworthinesstrustworthiness innovativenessinnovativeness creativitycreativity

meanings meanings ascribed, values ascribed, values

attachment attachment affective affective

measuresmeasures wantibility wantibility personalitypersonality affectivityaffectivity powerpower .... ....


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36


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Levels of brand LoyaltyLevels of brand Loyaltyor Strength of Brand or Strength of Brand

LinkLink

Indifference to the brand

Conservative to the Brand, butnot really satisfied

Satisfied, but still could change

Trustfull, likesthe Brand

Promotes the Brand


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Measuring Brand Measuring Brand LoyaltyLoyalty

Behavior & Behavior & purchase actspurchase acts

Switching costsSwitching costs

SatisfactionSatisfaction

PreferencePreference

Attitudes & Attitudes & emotions emotions towards the towards the BrandBrand

Purchase IntentPurchase Intent


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Perceived qualityPerceived quality

PIMS resultsPIMS results«On the long run, perceived «On the long run, perceived

quality is the most influential factor quality is the most influential factor of ROI and ROS ratios».of ROI and ROS ratios».

it affects :it affects :market share,market share,

pricepricemarketing marketing

efficiencyefficiency costscosts


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Perceived Perceived BrandBrand quality quality

Different from Different from product quality quality

does not rely does not rely ONLY on usageONLY on usage

?


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Presence

Relevance

Performance

Advantage

Bond + Affinity

Brand Strength Building ContinuumBrand Strength Building Continuum

?


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Brand StrengthBrand Strength

Level & depth of loyalty Level & depth of loyalty (Intensity of) Preference(Intensity of) PreferenceAwareness + saliency Awareness + saliency QualityQualityImage, positionning, Image, positionning,

associations associations selling valueselling valueprice premium potentialityprice premium potentialityhow much bonding ?how much bonding ?


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Towards Brand IdentityTowards Brand Identity


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The Brand Chinese The Brand Chinese PicturePicture

An Object An animal A celebrity A country A location An atmosphere A painting …

Synonymous Brands

Antonymous Brands


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Brand Mental Map Brand Mental Map Build-upBuild-up

Your Brand

funfriendly

store

flashlights


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Nature & activenessof Relationestablished by Brand

Brand Non-Adepts’Set of mind of Brand & of Brand Adepts

Brand Adepts’ set of mind of Brand & ofthemselves

Most typical/active apects of Brand Culture &Ligitimacy

Most typical/salient aspects of Brand « Persona »

Most typical Physical offer and salient aspects Of Brand

BRANDIDENTITY


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Brand Personality Factors and Brand Personality Factors and facetsfacets

Sincerity : down-to-earth, Honest, Wholesome, Cheerful

Excitement : Daring, Spirited, Imaginative, Up-to-date

Competence : Relaible, Intelligent, successful Sophisitication : upper-class, charming,

brilliant Ruggedness : outdorsy, tough ……


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Brand Equity MeasurementBrand Equity Measurement


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Brand Tracking StudiesBrand Tracking Studies

Structure1. Brand Awareness and usage2. Brand Judgments3. Brand Performance4. Brand Imagery5. Brand Feelings6. Brand Resonance


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Brand Awareness & Brand Awareness & Usage/Experience Usage/Experience

Spontaneous, aided awareness

Usage state Established trial Next purchase ? Competition

awareness

Spontaneous associations

Competitive set (usage, trial)

Level of familiarity


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Brand JudgmentsBrand Judgments

Relative to Brand Offer Attitudes Satisfaction level,

compared Recommend to others ? Value for money ? What is best sold by

the brand ? What you like best ? What is different ?

Superior, most satisfying vs others ?

……

Relative to Brand « Business Entity »

Innovative ? Knowledgeable ? Trustworthy ? Likable ? Concern about

customers ? Concerned about society

? Admirable ? Quality of management ? …….


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Brand Performance Convenience Efficiency Quality All aspects of

brand offer specific features, benefits, promises, positionnings …..

Brand Imagery Admiration Respect Dowmn-to-earth Daring Up-to-date Reliable Successful Uuper class Charming Out-doorsy …….


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Brand Feelings Warmth ? Fun ? Excitement ? Security ? Social

Approval/enhancement ?

Self-respect ? …….

Brand Resonance Do you consider yourself as

loyal ? Occasionaly ….. To would do

anything to buy ? Love ? Identification with users ? Connected to the Brand ? Recommend the Brand ? Interest in Brand

achievments ? Proudness of using ? Follow news ? Go to website ? Own Stock ?


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How do brands work ?How do brands work ?The car industry The car industry CasesCases

Read articles The rôle of marque, Read articles The rôle of marque, How people buy, Reviving up How people buy, Reviving up Autoindustry & New Brand of Autoindustry & New Brand of Brand ManagementBrand Management

Identify how, when, why, Identify how, when, why, Brand/marque influences the Brand/marque influences the decision-making process & choice decision-making process & choice in the different in the different segments/clusterssegments/clusters

Sort rational and emotional Sort rational and emotional influences influences

Apply to your brand Apply to your brand Prepare presentationPrepare presentation

psu - global brand management - alain hutinel 1 part ii defining and evaluating brand equity and...

Documents

brand c brand b brand

brand criteria

brand d

brand capacity

brand identity slide

evaluating brand strength

brand building continuum

customer based brand