Strategic Brand Management: Amity International Business School

Amity International Business School
STRATEGIC BRAND MANAGEMENT

LECTURE 4
Definition of Customer-Based Brand Equity

The differential effect that brand knowledge has on customer response to brand marketing activity
Sources: Thoughts, feelings, images, experiences, beliefs, attitudes, experiences, etc. Outcomes: Revenue enhancements & cost savings
Brand Resonance
Brand resonance is when consumers feel that they are in synch with a brand Creating brand resonance involves a series of steps as part of a branding ladder Creating brand resonance is also characterized by a logically constructed set of brand building blocks.
BRAND RESONANCE PYRAMID

Stages of Brand Development Building Blocks Branding Objective at Each Stage
Intense, Active Loyalty
RELATIONSHIPS: What about you & me?
Resonance
RESPONSE: What about you?
Judgments
Feelings
Positive, Accessible Reactions
MEANING: What are you? Performance Imagery
Points-of-Parity & Difference
IDENTITY: Who are you?
Salience
Deep, Broad Brand Awareness
Brand Resonance Building Blocks: Salience

Salience
Depth and breadth of brand awareness
Recognition and recall at purchase and consumption
How easily and often the brand is thought of

In all the right places at all the right times in all the right ways
Brand Resonance Building Blocks: Performance & Imagery

Performance
What the brand does to meet customers' more functional needs.
Brand performance refers to the intrinsic properties of the brand in terms of inherent product benefits.
Imagery
How people think about a brand abstractly rather than what they think the brand actually physically does.
Brand imagery is thus more extrinsic properties of the brand.
Four important intangible dimensions are:

Type of user Brand personality History & heritage Experiences
Superior Competitive Positioning

Performance and Imagery associations should be chosen to help the brand achieve a superior competitive positioning Develop 3-5 unique brand points-of-difference (PODs)
Desirable to consumer Deliverable by the company Differentiatied from competitors
Establish 2-4 shared brand points-of-parity (POPs)

Negate competitor points-of-difference Overcome perceived vulnerabilities from points-of-difference Demonstrate category credentials
Brand Resonance Building Blocks: Judgments & Feelings

Judgments
Consumers overall brand evaluations
How consumers combine performance and imagery associations to form different kinds of brand opinions Quality, satisfaction, credibility, consideration, superiority
Feelings
Consumers emotional responses and reactions to the brand
Can be mild or intense; positive or negative; or experiential or enduring in nature. Can also relate to the social currency evoked by the brand.
Dimensions of Brand Feelings

Brand feelings can be divided into two broad categories: Experiential immediate, short-lived during purchase/consumption Enduring private, possibly part of day-to-day life Brands should have one, or ideally both, types of feelings
Experiential Feelings
Warm
Increasing level of intensity
Enduring Feelings
Sense of Security (Inner-directed) Social Approval (Outer-directed) Self-Respect (Actualization)
Self-Respect Sense of Security Social Approval Inner-Directed Outer-Directed
Higher level of values & needs
Fun Exciting
Brand Resonance Building Blocks: Resonance

Resonance
The extent to which customers feel that they are in synch with the brand
Intensity or depth of the psychological bond that customers have with the brand or others Level of activity engendered by this loyalty
Repeat purchase rates The extent to which consumers seek out brand information, events, or other loyal customers
The Four Components of Brand Resonance

Behavioral Loyalty Attitudinal Attachment
Customers repeat purchases and the amount or share of category volume attributed to the brand
When customers view the brand as being something special in a broader context
Active Engagement
When customers are willing to invest personal resources on the brand time, energy, money, etc. beyond those resources expended during purchase or consumption of the brand
Sense of Community
When customers feel a kinship or affiliation with other people associated with the brand.
Sub-Dimensions of Brand Resonance Pyramid
RESONANCE LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT
JUDGMENTS QUALITY CREDIBILITY CONSIDERATION SUPERIORITY
FEELINGS WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT IMAGERY USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE, & EXPERIENCES
PERFORMANCE PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE
SALIENCE CATEGORY IDENTIFICATION NEEDS SATISFIED
Achieving Resonance
First, must create foundation for resonance
Proper salience & breadth & depth of awareness Firmly established points-of-parity & points-ofdifference Positive judgments & feelings that appeal to the head & the heart
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Achieving Resonance
Then, must optimize four dimensions of brand resonance by developing marketing activities that:
Overcomes physical & mental barriers for purchase & consumption Strikes an emotional chord Are a catalyst for social connections Creates meaningful opportunities for interactions
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Nike Brand Resonance Pyramid
Loyalty Attachment Community Engagement Fun Exciting Self-respect

Emotional Route
Rational Route
Credibility Superiority
Innovative Quality Stylish
Empowerment Irreverence
Salience Everything athletic
Starbucks Brand Resonance Pyramid
Loyalty Attachment Community Engagement Quality Credibility Consideration Superiority Quality ingredients Exotic variety Personalized service Comfortable atmosphere Warm Fun Relaxation Romantic indulgence Sophisticated & elegant Casual & comfortable Third Place Progressive & cool
Rational Route
Emotional Route
Salience Highly accessible & convenient (ideally anywhere & anytime)

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