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Measuring outcomes of brand equity and designing & implementing branding strategies
This document discusses methods for measuring brand equity and designing branding strategies. It describes three types of methods for measuring brand equity: comparative, which examine consumer response to brand changes; conjoint analysis, a survey technique to assess brand attributes; and holistic methods that attempt to place an overall value on a brand. It also outlines considerations for branding strategies such as brand architecture, breadth and depth of product lines, building brand equity at different hierarchy levels, and using cause marketing to build brand equity.
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Focuses on measuring brand equity outcomes through various comparative methods like brand-based, marketing-based, and conjoint analysis.
Discusses holistic methods for evaluating brand equity, including residual and valuation approaches for financial assessments.
Explains branding strategy essentials, brand architecture, brand hierarchy levels, and integrating cause marketing for building brand equity.
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Measuring outcomes of brand equity and designing & implementing branding strategies
- 1. Measuring Outcomes ofBrand Equity & Designing and Implementing Branding Strategies PRESENTATION BY: Neetu Bhuyan Priyanka Tiwari Sourabh Shrivastava
- 2. Measuring Outcomes ofBrand Equity
- 3. Research studiesor experiments that examine consumer attitudes & behavior toward a brand. Estimate the benefits arising from having high level of awareness. 3 types:- - Brand-based comparative approaches. - Marketing-based comparative approaches. - Conjoint analysis. Comparative Methods
- 4. Consumer responseis examined based on changes in brand identification. Application example: Blind testing. Critique. Advantage- It isolates the value of the brand in a very real sense. Disadvantage: The totality of what is learned depends on how many applications are examined. Brand-Based Comparative Approaches-
- 5. The brandis held fixed and consumer response is examined based on changes in marketing programs. Applications: Explore price premiums’ effect on switching, consumer evaluations of marketing activities, brand extensions, etc. Advantage: Ease of implementation Disadvantage: Difficult to determine whether consumer responses are caused by brand knowledge or generic product knowledge Marketing Based Comparative Approaches-
- 6. A survey-basedmultivariate technique that enables marketers to profile the consumer decision process with respect to products and brands. Applications: Assess advertising effectiveness and brand value; analyze brand/price trade-off. Advantage: Allows for different brands or different aspects of the product to be analyzed simultaneously. Disadvantage: May violate consumers’ expectations based on what they already know about brands Conjoint Analysis-
- 7. Attempt toplace an overall value on the brand in either abstract utility terms or concrete financial terms. Net out various considerations to determine the unique contribution of the brand Two methods: -Residual approaches. -Valuation approaches Holistic Methods
- 8. Examine thevalue of the brand by subtracting consumers’ preferences based on physical product attributes alone from their overall brand preferences. Advantage: Useful benchmark for interpreting brand equity, especially from a financially oriented perspective. Disadvantage: Static view. Limited diagnostic value for strategic decision making Residual Approaches-
- 9. Attempt toplace a financial value on brand equity for accounting purposes. Useful in cases of mergers and acquisitions, brand licensing, fund raising, and brand management decisions. Valuation approaches: -Accounting background. -Historical perspectives. -General approaches . -Interbrand’s brand valuation methodology Valuation Approaches-
- 10. Designing and Implementing BrandingStrategies
- 11. What is aBRAND ? A Brand is a name, term, sign, symbol or design which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. PRODUCT + X = BRAND
- 12. Brand Architecture Brandarchitecture is the structure of brands within an organizational entity. It is the way in which the brands within a company’s portfolio are related to, and differentiated from, one another. The architecture should define the different leagues of branding within the organization:- • How the corporate brand and sub-brands relate to and support each other & • How the sub-brands reflect the core purpose of the corporate brand to which they belong.
- 13. The roleof brand architecture is to :- • Clarify – Brand awareness : Improve customer understanding and communicate similarity and difference between individual products. • Motivate – Brand image : To maximize the transfer of equity.
- 14. Brand product matrix The Brand product matrix is a tool used for the graphical representation of all the brands and the products sold by the firm. In this matrix the brands of a firm shown as in rows and the corresponding products as columns.
- 16. Brand Line(rows) : • Various products within a brand (original + extensions ) Product line (columns) : • Set of products with similar function. • Products across brand or brand extensions. Brand portfolio is a set of all brand lines that a particular firm offers for sale to buyers in a particular category.
- 17. Breadth of aBranding Strategy The breath of a branding strategy describes the number and nature of different products linked to the brands sold by the firm. Breath of the product mix: Category attractive matrix
- 19. Depth ofthe product mix: once marketers have made their decision concerning appropriate product categories and markets in which to compete, they need to choose the optimal product line strategy. Product line analysis required a clear understanding of the market and the cost interdependencies between products.
- 20. Depth of aBranding Strategy This is the number and nature of different brands marketed in the product class sold by a firm. The reason is to pursue different market segments, different channels of distribution or different geographic boundaries. Maximize market coverage and minimize brand overlap.
- 21. Brand Hierarchy Itis a useful means of graphically portraying a firm’s branding strategy by displaying the number & nature of common & distinctive brand elements across the firm’s products, revealing the explicit ordering of brand elements. It’s based on the realization that we can brand a product in different ways depending on how many new & existing brand elements we use & how we combine them for any one product. Example: ESPN
- 22. Building Equity atDifferent Hierarchy Levels: Corporate Brand Level Family Brand Level Individual Brand Level Modifier Level
- 23. Corporate Brand Level Occurs when relevant constituents hold strong, favorable, and unique associations about the corporate brand in memory Encompasses a much wider range of associations than a product brand
- 24. Family Brand Level Brands applied across a range of product categories An efficient means to link common associations to multiple but distinct products.
- 25. Individual Brand Level Restricted to essentially one product category. There may be multiple product types offered on the basis of different models, package sizes, flavors, etc.
- 26. Modifier Level Signalsrefinements or differences in the brand related to factors such as quality levels, attributes, functions, etc. Plays an important organizing role in communicating how different products within a category that share the same brand name.
- 27. Corporate Image Dimensions Corporate product attributes, benefits or attitudes • Quality • Customer orientation Values and programs • Concern with the environment • Social responsibility Corporate credibility • Expertise • Trustworthiness • Likability
- 28. Designing a BrandingStrategy A branding strategy helps establish a product within the market and to build a brand that will grow and mature in a saturated marketplace. There is no uniform agreement on the one type of branding strategy that all firms should adopt for all products. Brand element of each level of hierarchy may contribute to build brand equity through ability to create awareness as well as foster strong, favourable & positive responses.
- 29. The challenges facingduring Branding Strategy is to: Design the proper Brand hierarchy (Number & Nature ). Design the optimal supporting marketing program (Brand Awareness & Brand Association).
- 30. Number of Levelof Brand Hierarchy: Sub-Branding: Combination of existing brand with new brand. Example: IBM ThinkPad Principle of Simplicity: provide the right amount of branding information to the consumer- no more, no less Principles of Clarity: Logic & relationship of all brand elements employed must be obvious & transparent. for eg: sony has family brand name CyberShot for cameras, Wega for TV’s, Handycams for its camcoders.
- 31. Desired Awareness &Image at each hierarchy Level: Principle of Relevance: Based on the advantages of efficiency & economy. Create abstract association that are relevant across as many individual items as possible. Eg: Nike Slogan “Just Do It”, this is relevant to virtually all the product itself. Principle of differentiation: Is based on the disadvantages of redundancy. Marketers should distinguish brand at the same level. Eg.: Microsoft product : Media extender, Media connect, & Windows Connect.
- 32. Combining Brand Elementsfrom Different Levels: The prominence of a brand element is its relative visibility compared with other brand elements. Eg.: Assume Pepsico has addopted a sub-branding strategy to introduce new Cola say “Vitacola”. Prominence by Brand name element PEPSI vitacola OR VITACOLA By PEPSI Principle of Prominence : Primary & Secondary. Primary brand element should convey the main product positioning & point of difference. Secondary brand element convey a more restricted set of supporting association such as point of parity.
- 33. Linking Brand Elementsto Multiple Products: It is a horizontal aspects of brand hierarchy that how to link any one brand element with multiple products. Principles of commonality: it states that the more common brand elements product share, the stronger the linkage between the products.
- 34. Using Cause MarketingTo Build Brand Equity It came in 1980s. It can be defined as the process of formulating & implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue providing exchanges that satisfy organizational and individual objectives.
- 35. Its distinctivefeature is the link between the firms contribution to a designated cause and customers' engaging in revenue producing transactions with the firm. Example- American Express was 1st to create awareness of the concept in 1983 by a campaign to “restore Statue of liberty” in which every credit card transaction donate a penny and a dollar by new card issuing, like this it contributed $1.7 million for the cause also its transaction increased by 30 % and new card issuance by 15%.
- 36. Advantages Of CauseMarketing It evoke positive response from the consumers. It created positive image of the company that supported a cause. Many consumers switched from their brand to the another brand who support a cause. It created a positive impact on the employees of the company who were in the support of a cause and showed their loyalty towards the company. It is Humanizing the firm.
- 37. It offerspotential benefits by Cause or Corporate societal marketing(CSM) like- i. Building brand awareness (by sponsorship etc) ii. Enhancing brand image (kind, generous, valuable) iii. Establishing brand credibility (doing the right things) iv. Evoking brand feelings (social approval, self worth) v. Creating a sense of brand community (online groups) vi. Eliciting brand engagement (participation, ambassadors)
- 38. Designing Cause MarketingPrograms It is designed in association with advertising and promotional activities. It may also be a part of product development. Some designs it for uniquely positioning the product of a brand. Creating a point of parity between the product and consumer. Example- McDonald’s musket Ronald McDonald creates link with children and supports house charities which provide comfort and care to children.
- 39. Green Marketing Itis a special case of cause marketing which concerns for the environment and environment friendly products. The green marketing movement was born, and firm after firm tried to capitalize on consumers’ perceived increased sensitivity to environmental issues. But it faced many obstacles like overexposure and lack of credibility (only gimmicks), consumer behavior (reality & perception of public doesn't match), poor implementation (failure in connection), possible solutions (meet consumer wishes with the environment benefit of product).
- 40.