Brand Equity and Brand Positioning

1
Brand Equity and Brand Positioning

• Mkt4806
• Product and Brand Management
• Book Kevin Lane Keller, Strategic Brand
  Management, 2nd Edition
• Chapter 2 Customer-based Brand Equity
• Chapter 3 Brand Positioning and Values
• Lecture note by Polboon Nuntamanop

2
What is a Brand?

• 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.

3
Brand Elements

• A variety of brand elements can be chosen that
  inherently enhance brand awareness or facilitate
  the formation of strong, favorable, and unique
  brand associations
• Brand Name
• Logo
• Symbol
• Character
• Packaging
• Slogan

4

• Why branding ?
• What makes a brand strong?
• How do you build a strong brand?

5
Customer-based Brand Equity

• The differential effect that brand knowledge has
  on consumer response to the marketing of that
  brand.
• Customer-based brand equity occurs when the
  customer has a high level of awareness and
  familiarity with the brand and hold some strong,
  favorable, and unique brand associations in
  memory.

6
Brand Equity
Brand Association
Brand Awareness
Brand Positive Attitude
Brand Loyalty
Brand Occasional users
7
An example

• Brand loyalty (10,000 customers
• Consume _at_4/month 40,000 sales unit/month)
• Brand Occasional users (10,000 X_at_1 per 2 months
  5000 units sales per month)
• Brand Positive Attitude has a good chance to
  purchase and consume the products under the brand
  if motivated.
• Brand Awareness has tendency to try, use or
  recommend the products under the brand if
  convinced.
• Brand Association has tendency to try, use or
  recommend the products under the brand.

8
Sources of brand equity

• Brand awareness
• Learning advantage
• Consideration advantage
• Choice advantage\
• Brand Image

9
Consumer reasons for brand choices An example

• Past experience
• Price
• Quality
• Personal recommendation
• Advertising
• Rating on consumer report
• Environmental performance

10
4 Steps of Brand Building

• Ensure identification of the brand with customers
  with a specific product that meet customer need.
• Firmly establish the totality of brand meaning in
  the minds of consumers.
• Elicit the customer responses to brand
  identification and brand meaning.
• Convert brand response to create an intense,
  active, loyalty relationship between customers
  and the brand.

11
Brand Building Blocks

• Identity - who are you?
• Meaning - what are you?
• Response - what about you?
• Relationship - what about you and me?

12
4 relationship
Resonance
3. response
Judgments
Feelings
2.Meaning
Imagery
Performance
Salience
1.Identity
13
Loyalty Attachment Community Engagement
Quality Creditability Consideration Superiority
Warmth / Fun / excitement Security Social
approval / self respect
Product characteristics Reliability Effectiveness
Style / design/ price
User profile Usage situation Personality and
values History, heritage, experiences
Category identification Needs satisfied
14
Brand Resonance

• Behavioral loyalty
• Keep buying the same product and same brand over
  years or generations
• Attitudinal attachment
• Believe in the brand
• Sense of community
• Use the brand because of sense of community or
  vice versa, E.g. Apple, Harley Davidson
• Active engagement

15
Product Category StructureAn example
Beverage
Water
Flavored
Non-alcoholic
Alcoholic
milk
Coffee tea
juice
Soft drink
wine
beer
Distilled spirits
16
Brand Positioning

• Brand Positioning (as defined by Kotler) is an
  act of designing the companys offer and image so
  that it occupies a distinct and valued in the
  target customers mind.
• ? Finding a proper location in the minds of a
  group of consumers or market segment so that they
  think about a product or service in the right
  or desired way.

17
Establishing brand Positioning

• Target market
• Points of parity and Points of Difference

18
Target market

• A market is the set of all actual and potential
  buyers who have sufficient interests in, income
  for, and access to a product.
• A market segmentation a distinct group of
  homogeneous consumers who have similar needs and
  behavior and thus require similar marketing
  mixes.

19
Segmentation bases
Consumer Segmentation Bases
Business-to-business Segmentation Bases

• Behavioral
• E.g. user status
• Demographic
• E.g, age, income
• Psychographic
• E.g. values, lifestyle
• Geographic
• E.g, local, regional, international

• Nature of good
• E.g. Semi-finished
• Buying condition
• E.g. Location
• Demographic
• E.g. SIC code
• No of employees
• Sales volume

20
Segmentation Criteria

• Identifiability can segment identification be
  determined?
• Size is there adequate sales potential in the
  segment?
• Accessibility Can the segment be reached?
• Responsiveness How favorable will the segment
  respond to a tailored marketing programgt

21
Segments of users

• 4 Groups of users based on strength of
  commitment.
• Convertible highly likely to switch brands
• Shallow not ready to switch but consider
  alternatives/
• Average comfortable with their choice, unlikely
  to switch brands in the near future.
• Entrenched loyal to the brand, unlikely to
  change in the foreseeable future.

22
Points of Parity (POP) andPoints of differences
(POD)

• Point of Parity ? a particular dimension or
  attribute or a brand which a group of consumers
  believe that is good enough or meet their basic
  expectations.
• Point of Difference ? A particular attribute or
  dimension of a brand which a group of consumers
  likes and perceives as the uniqueness of the
  brand.

23
Point of Differences

• Other names
• Competitive Points of Parity
• Unique Selling Point

24
Positioning Guidelines

• Defining and communicating the competitive frame
  of reference
• Choosing points of parity and points of
  differences.
• Establishing points of parity and points of
  differences.
• Updating positioning over time

25
Brand Values

• Cores Brand Values
• Set of abstract associations (Attributes and
  benefits) that characterize the 5 to 10 most
  important aspects or dimensions of a brand.
• When you think of a brand, what comes to mind?

26
Brand Mantras

• Brand Mantra
• brand essence
• Brand core promises
• An articulation of heart and soul of the brand.
• Short phrase that capture the essence or spirit
  of the brand positioning and brand values.

27
An exampleA local (Thai) soymilk brand -
Vitamilk

• Core Brand Values
• Soy-based
• Quality
• Healthy
• Tasty
• Safety
• Filling
• For everyone
• Widely available anywhere anytime.
• Brand Mantra
• Vitamilk is a tasty healthy drink.