Brand Equity

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Brand Equity

• Consumer-based Brand Equity Creating Associations

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The Brand (to this point)

• Back to the question that we asked on the first
  day of class
• What is a brand?
• We have defined it as
• Brain space
• A set of associations in memory
• Those associations that create differentiation
  related to the brand in memory, resulting in
  brand equity

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What is Brand Equity?

• Review
• The differential effect that brand knowledge has
  on consumer response to the marketing of that
  brand
• The unique brain-space that your brand occupies
  in the minds of your customers

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Brand equity

• Improves perception of product performance
• Makes company less vulnerable to competitive or
  environmental shocks
• Larger margins
• Increase marketing communication effectiveness
• Greater trade cooperation and support

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How to create brand equity?

• We create brand equity by creating an integrated
  Brand that
• Maximizes the creation of brain-space
• By ensuring that every interaction with our
  company teaches and reinforces the brand promise
• So that our relationships with others will evolve

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The evolution of Brand equity creation

• Brand equity is created in a progressive fashion
• Establish proper Brand Identity
• Create Brand meaning
• Elicit positive Brand responses
• Forge strong Brand relationship

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Building Brand Equity 4 Step Summary

• Who are you? (Awareness, Brand Identity)
• What are you? (Brand Meaning)
• What about you? What do I think or feel about
  you? (Brand Response)
• What about you and me? What is our connection?
  (Brand Relationship)

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Brand Equity Pyramid
Relationship
Relationship
Response
Feelings
Judgments
Meaning
Imagery
Performance
Identity
Identity
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Brand Relationship
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How can we measure each of these four stages of
Brand Building?

• Stage 1 Awareness
• What brands of product or service category can
  you think of?
• Have you ever heard of these brands?
• What brands might you likely use under the
  following situations?
• How frequently do you think of this brand?

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How can we measure each of these four stages of
Brand Building?

• Stage 2 Meaning
• Compared with other brands in this category, how
  well does this brand provide the basic function
  of the product or service category?
• How much do you like the look, feel, and other
  design aspects of this brand?
• To what extent do people you admire and respect
  use this brand?
• How well do Aakers attributes describe this
  brand?
• To what extent do you feel like you have grown
  up with this brand? Does it bring back pleasant
  memories?

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How can we measure each of these four stages of
Brand Building?

• Stage 3 Response (Judgments and feelings)
• Overall attitudes and opinions of the brand?
• How good a value is this brand?
• To what extent do the makers of this brand
  understand your needs/care about your
  opinions/have your interests in mind?
• Feelings of warmth/fun/excitement/security/self-re
  spect?

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How can we measure each of these four stages of
Brand Building?

• Stage 4 Resonance (Relationship)
• I consider myself loyal to this brand
• I feel this is the only brand of this product
  that I need
• I love this brand
• I identify with the people who use this brand/I
  feel a connection with the people who use this
  brand
• I am always interested in learning more about
  this brand
• I am proud to have others know that I use this
  brand

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How does Brand equity connect the past with the
future?

• Past Brand management expenditures are
  investments in what customers learned about the
  Brand
• Can be good or bad investments
• Past investments constrain future directions
• Consumers decide whether a future marketing
  program is acceptable
• Midstream change costs in terms of real dollars
  AND dilution or reconstruction of brain space

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Cultivating Brand Equity

• Step 1 Selecting Brand elements
• Symbols
• Criteria
• Step 2 Creating Associations
• Integrated marketing communications
• Effective advertising communication
• Effective promotion, pricing, placement

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Cultivating BE Brand Elements

• Brand Elements
• Summarize associations
• Aid retrieval of brand information
• Simplify new learning
• Types of Brand Elements
• Brand Name (Apple, Microsoft)
• Logos and Symbols (Nike Swoosh)
• Characters (California Raisins)
• Slogans and Jingles (Im Lovin it)

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Brand Elements Criteria

• Memorable
• Easily recognized and recalled
• Meaningful
• Descriptive and persuasive
• Likable
• Fun, Interesting, Rich Imagery
• Transferable
• Within and across product and national boundaries
• Adaptable
• Updatable, flexible
• Protectable

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Brand Name Types

• Actual words
• Energizer
• Coined (Descriptive)
• Microsoft
• Coined (Abstract)
• Maytag
• Acronym Names
• GE

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Brand Name Generation Process

• Prioritize Goals for Brand Name
• Meaning
• Memorable
• Likable
• Adaptable
• Transferable
• List Generation
• Screening
• Legal Search
• Consumer Testing

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Meaningfulness Factors

• Existing words (or historical references)
• Mayflower moving
• The Savoy (Black, upwardly mobile professionals)
• Word stems and morphemes
• Morpheme Smallest linguistic unit of meaning
• Plosives and Sibilants
• Letter sounds convey meaning
• Qs, Xs, Zs
• X Extreme, Cutting edge

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Linguistics Sound Symbolism

• BlackBerry b suggests relaxation, and berry
  suggests smallness. Alliteration is lighthearted.
  
• Enron The repetition of n at the end of each
  syllable produces a whirring sound suggesting a
  spinning motion.
• Prozac pro is pedestrian, but ac suggests
  action
• Zoloft zo life in Greek, and loft equals
  elevation. Z is very daring.
• Tyco t and k associated with active
• Viagara Suggests Niagara ?

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Memorability Factors

• Simple to spell and pronounce
• Aids recall
• Aim, Raid, Ban
• Difficult to pronounce? FCUK, Faconnable, Hundai
• Familiar
• Pre-exists in memory Less learning, but may have
  preexisting associations with it
• Dodge Neon
• Distinctive
• Increases recognition separates from clutter

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Brand Naming Discussion Electronic Commerce
Names
For each of these word sets, consider whether the
name is

• Set 2
• Garden.com
• Pets.com
• Furniture.com

• Set 1
• EBay
• Amazon
• Yahoo

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Logos and Symbols

• Word Marks
• Abstract Logos
• Literal Logos

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RepeatedExposure

• Do you think that the swoosh in the middle of
  the page is effective?
• Is it just chance?
• What is the benefit of putting the swoosh there?

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Kleine, Kleine, and Kernan 1993 Mundane
consumption and the self

• Social Identity theory (Tajfel and Turner 1979)
• Individuals do not have one, personal self, but
  multiple several selves that correspond to a
  widening circle of group membership.
• Multiple social identities
• The individuals self-concept is derived for
  perceived membership in social groups
• Our prior discussions about your MBA self
  versus your relationship partner self

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Roles vs. Identities

• Role
• Expected behaviors (consensual between you and
  society) related to ones position in society
• Society might be thought of as the aggregation of
  all of those roles
• Identity
• Self knowledge related to behavior within a
  social group
• The Individual is the sum of all of these identies

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How do possessions reflect on the self-concept?

• Prior to this paper, it was generally assumed
  that people bought brands AS reflections of the
  self
• However, this paper says that people buy brands
  in order to facilitate or maintain social
  self-identities
• Products (brands) are instrumental (enabling) in
  behavior, rather than as ends in themselves

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E1 summary

• Activate 5 schemas
• Athletic self-identity
• Possessions of the athletic self-identity
• Goal of athletic identity
• Role of athletic identify
• Global self
• Dump data into SEQ, turn the crank.

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E1 Summary

• Identity Related Possessions Schema linked to
  Identity schema, not to Global self
• Thus, the possessions (products or brands) that
  individuals associated with a particular
  self-identity do not necessarily match with an
  individuals global self
• This suggests that self-identities are more
  important in behavior than global self-concept

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E2 Identity salience and behavior

• Measure salience, behavior frequency, other
  antecedents of athlete, student and worker
  identities (p.227)
• Wave the magic wand and.

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Results

• Salience differed for each identity
• Behavior was driven by salience of identity and
  not by other identities
• All inputs to salience are significant, except
  Identity possessions. Why?
• Having the possessions is not enough, what
  matters is how a person perceives other peoples
  reactions to the use of those possessions

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Aaker 1997 Dimensions of Brand Personality

• Brand Personality
• Set of human characteristics associated with a
  brand
• Emotional and Cognitive
• Brands allow for self-expression
• Ideal and actual self
• Mundane consumption (Kleine et al 1993)

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This is a scale development paper

• First, generate trait lists
• 309 traits, found by using previously developed
  scales from personality scales in psych and
  business, advertising, and marketing research
  free association
• Second, pare the list down
• Ss rated traits as descriptive of brands in
  general
• Cutoff value (6) for inclusion
• 114 final traits

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Methodology continued

• Third, pick portfolio of brands to test traits
  with
• 37 brands chosen
• Ss responded to subsets of brands, then all
  answers were aggregated
• Fourth, Factor analysis
• Groups matrix of data into interpretable clusters
• Aaker found 5 of them

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Confirming the factors

• Sincerity, excitement, competence,
  sophistication, and ruggedness
• Test-retest
• Ss returned and did the same project again
• stable over time (this is good)
• Second sample of brands was selected
• Confirmatory FA found good fit of factors to data

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Aaker conclusions

• Included factors represent good picture of Brand
  Personality
• Generalizable across brands and product categories

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Brand Labels Slogans Jingles

• Encourages message rehearsal
• Cant get it out of your head
• Can serve as retrieval cue
• Hearing the jingle or slogan activates KS in
  memory
• Repetition creates liking
• Mere exposure,
• Reinforces key association
• Like a good neighbor...

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Case Study McDonalds

• Watch these ads and ask
• Does this jingle/slogan increase awareness?
• What are the meanings conveyed by the
  jingle/slogan?
• Polysemy
• Does the Jingle/slogan fit with the other images
  in the ad?
• Does Justin Timberlake make the Jingle more
  effective?

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Designing Marketing programs to build Brand equity

• Once you have your Brand Identity, you must
  communicate that to your customers
• Brand Conveyers in the IBM
• How do we design marketing activities that will
  maximize the creation of brand equity?

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A simple test for marketing communication
effectiveness
Current Customer Brand Knowledge
Desired Customer Brand Knowledge
Communication

• What is the state of your customers current
  brand knowledge?
• What do you wish your customers knew? (POD and
  POP)
• How do your communications help get the brand
  from current to desired brand knowledge?

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Creating Brands Advertising
1991
1985
1975
1971

• Affluence, exclusivity
• Fun to drive

• Affluence, exclusivity
• Fun to drive

• Fun to drive
• Economical

• International
• Desirability

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Guidelines for evaluating an Ad campaign

• Two parts to an ad campaign effectiveness
• Message Strategy
• Creative Strategy
• Two concerns in creating the campaign
• Positioning to maximize brand equity
• Identify the best creative strategy

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Types of creative strategies

• Informational
• Problem-solution
• Demonstration
• Product comparison
• Testimonial
• Transformational
• Typical or aspirational usage situation or person
• Brand personality and values

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Creative strategies

• Motivational techniques
• Humor
• Warmth
• Sex appeal
• Music
• Fear
• Special effects

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Discussion Nissan Motors

• Good Campaigns incorporate multiple elements
• As we watch, what elements are present?
• Motivational
• Informational
• Transformational