STRATEGIC BRAND MANAGEMENT

MODULE-4
Measuring & Interpreting brand
performance
By:
MADHU B.K

STRATEGIC BRAND MANAGEMENT

MODULE-4

Measuring & Interpreting brand

performance:
Brand Value chain- Designing
Brand
Tracking
studies,
Establishing
brand
Equity
Management.

STRATEGIC BRAND MANAGEMENT

Brand Value chain

The brand value chain is a structured approach
to assessing the sources and outcomes of brand
equity and the manner by which marketing
activities create brand value.
Some observers believe that up to 70% (or even
more) of marketing expenditures may be
devoted to programs and activities that cannot
be linked to short-term incremental profits, but
yet can be seen as improving brand equity.

STRATEGIC BRAND MANAGEMENT

It recognizes that many different people

within an orgn can affect brand equity and
need to be aware of relevant branding
effect. The brand value chain thus provides
insights to support brand managers chief
marketing officers, managing directors and
chief executive officer all the whom may
need different types of information.
Virtually every marketing dollar spent today
must be justified as both effective and
efficient in terms of return of marketing
investment (ROMI).

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Brand Value Chain Stages

Customer
Mindset

Marketing
VALUE Program
STAGES
Investment
Product
Communications
Trade
Employee
Other

Awareness
Associations
Attitudes
Attachment
Activity

Program
Multiplier

Market
Performance
Pricepremiums
Priceelasticity
Marketshare
Expansionsuccess
Coststructure
Profitability

Consumer
Multiplier

Shareholder
Value
Stockprice
P/Eratio
Marketcapitalization

Market
Multiplier

FILTERS
Clarity
Relevance
Distinctiveness
Consistency

Marketdynamics
Channelsupport
Consumersizeandprofile Growthpotential
Competitivereactions
Riskprofile
Brandcontribution

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1. Marketing program investment : any

marketing program investment that can
contribute to brand value development
intentionally or not falls into this first
value
stage many marketing activities
like product research development &
design, trade or intermediary support
marketing
communication
including
advertising promotion sponsorship direct
and interactive marketing , personal
selling publicity and public
relations
and employee training.

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Program quality multiplier : the ability of the marketing program to

affect the customer mind-set will depend on its quality.
1. Clarity: how understandable is the brand marketing program ?do
properly interpret and evaluate its meaning?
2. relevance :how meaningful is the marketing program to
customers ? Do consumer feel the brand is one they should
seriously consider
3. Distinctiveness : how unique is the marketing program ? How
creative or differentiating is it?
4. Consistency : how cohesive and well integrated is the marketing
program ? Do all aspects combine to create the biggest impact
with customer ?
A well-integrated marketing program carefully designed and
implemented to be highly relevant and unique, is likely to achieve a
greater return on investment form marketing program expenditures

STRATEGIC BRAND MANAGEMENT

2. Customer Mind-set: in what ways have customer been

changed as a result of the marketing program ?
The customer mind-set includes everything that exists in the
minds of customers with respect to a brand. Thoughts,
feeling
experiences images perceptions beliefs and
attitudes,
understanding customer mind-set can have
important implication for the marketing programs.
Five dimensions have emerged form prior research as to
measures of the customer mind-set.
Brand awareness
Brand associations
Brand attitudes
Brand attachment
Brand activity

STRATEGIC BRAND MANAGEMENT

Marketplace conditions multiplier: the extent to

which value created in the minds of customers
affects market performance depends on factors
beyond the individual customer three such factors
are:
Competitive superiority : how effective are the
marketing investments of competing brands?
Channel and other intermediary support:
Customer size and profile:
The value created in the minds of customer will
translate to favorable market performance when
competitors fail to provide a significant threat when
channel members and other intermediaries provide
strong support and when a sizable number of
profitable customers are attracted to the brand.

STRATEGIC BRAND MANAGEMENT

1.

2.
3.

4.

3. Market performance : how customers react in the marketplace in six

main ways:
Price premiums
Price elasticity
Market share
Expansion success
Cost structure
Profitability
The first two related to price premiums and price elasticities. How much
extra are customers willing to pay for a comparable product because of
its brand? And how much does their demand increase or decrease when
the price rises or falls?
A third outcome is market share which measures the success of the
marketing program in driving brand sales.
The fourth outcome is brand expansion the success of the brand in
supporting line & category extensions and new-product launches into
related categories, this dimension captures the brands ability to add
enhancement to the revenue stream.
The ability of the brand value created at this stage to reach the final
stage in terms of stock market valuation again depends on external
factors.

STRATEGIC BRAND MANAGEMENT

Investor sentiment Multiplier: financial

analysts and investors consider a host of
factors in arriving at their brand valuations
and investment decision
1. Market dynamics
2. Growth potential
3. Risk profile
4. Brand contribution

STRATEGIC BRAND MANAGEMENT

4. Shareholder value: based on all available

current and forecasted information about a

brand, as well as many other considerations,
the financial marketplace formulates opinions
and assessments that have very direct
financial implications for the brand value,
three particularly important indicators are the
stock price, the price / earnings multiple, and
overall market capitalization for the firm,
research ahs shown that not only can strong
brands deliver greater returns to stockholders
they can do so with less risk.

STRATEGIC BRAND MANAGEMENT

Designing Brand Tracking Studies

It provide in-depth information and insights essential for setting
long-term strategic direction for the brand. But to gather
information for short-term tactical decisions, marketers will
collect less detailed brand-related information through ongoing
tracking studies.
Tracking studies collect information form consumers on a routine
basis over time, typically through quantitative measures of brand
performance on a number of key dimensions marketers can
identify in the brand audit or other means, they apply the brand
value chain to understanding where, how much, an din what ways
brand value is being created, thus offering invaluable information
about how well the brand has achieved its positioning.

STRATEGIC BRAND MANAGEMENT

Tracking studies involve information collected from

consumers on a routine basis over time.
Often done on a continuous basis
Provide descriptive and diagnostic information

Moving form general to more specific

measures is also a good idea in brand
tracking surveys to measure brand image,
especially specific perceptions like what
consumers think characterizes the brand &
evaluations such as what the brand means
to consumers

STRATEGIC BRAND MANAGEMENT

1. What to Track

1.

2.
3.

Customize tracking surveys to address the specific issues

faced by the brand.
It involves 3
Product-brand tracking: tracking an individual branded
product requires measuring brand awareness and image,
using both recall and recognition measures and moving
from more general to more specific questions
Corporate or family brand tracking: when marketers may
also want to track the corporate or family brand separately
or concurrently or both with individual products.
Global tracking: if your tracking covers diverse geographic
markets especially in both developing and developed
countries then you may need a broader se of background
measures to put the brand developments in those markets
in the right perspective.

STRATEGIC BRAND MANAGEMENT

2. How to Conduct Tracking Studies

1.

2.
3.

It involves 3
Whom to track (target market): tracking often
concentrates on current customers, but it can also be
rewarding to monitor nonusers of the brand or even of the
product category as a whole.
When and where to track (how frequently)
How to interpret brand tracking: which elements of the
brand should you use in tracking studies? Marketers use
the brand name, but it may also make sense to use a logo
or symbol in probing brand structures if these elements
can play a visible and important role in the decision
process.

STRATEGIC BRAND MANAGEMENT

Establishing of Brand Equity

Measurement System
A brand equity measurement system is a set of organizational
processes designed to improve the understanding and use of
the brand equity concept within a firm:
Brand equity charter
Brand equity report
Brand equity responsibilities
A brand equity measurement system is a set of
research procedures that is designed to provide
timely, accurate, and actionable information for
marketers so that they can make the best possible
tactical decisions in the short run and strategic
decisions in the long-run.

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1. Brand Equity Charter

Provides general guidelines to marketing managers
within the company as well as key marketing
partners outside the company & Should be updated
annually
the first step in establishing a brand equity
management system is to formalize the company
view of brand equity into a document, the brand
equity charter, that provides relevant guidelines to
marketing managers within the company as well as
key marketing partners outside the company such
as ad agency staff.

STRATEGIC BRAND MANAGEMENT

Brand Equity Charter Components

Define the firms view of the brand equity.
Describe the scope of the key brands.
Specify actual and desired equity for the brand.
Explain how brand equity is measured.
Suggest how brand equity should be measured.
Outline how marketing programs should be devised
Specify the proper treatment for the brand in terms
of trademark usage, packaging, and communication

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STRATEGIC BRAND MANAGEMENT

2. Brand Equity Report

Assembles the results of the tracking survey
and other relevant performance measures.
To be developed monthly, quarterly, or
annually.
Provides descriptive information as to what is
happening with the brand as well as
diagnostic information on why it is happening.

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STRATEGIC BRAND MANAGEMENT

Brand equity report: the second step in establishing a

successful brand equity management system is to
assemble
the results of the tracking surveys and other
relevant performance measures for the brand into a brand
equity report or scorecard to be distributed to management
on a regular basis.
The brand equity report should describe what is happening
with the brand as well as why it is happening, if should
include all relevant internal & external measures of brand
performance and sources and outcomes of brand equity.
Organizational Design & Structures: the firm should
organize its marketing function to optimize brand equity,
several trends have emerged in organizational design and
structure that reflect the growing recognition of the
importance of the brand and the challenges of managing
brand equity carefully.

STRATEGIC BRAND MANAGEMENT

3.Brand Equity Responsibilities

Organizational responsibilities and
processes that aim to maximize long-term
brand equity
Establish position of VP or Director of Equity
Management to oversee implementation of Brand
Equity Charter and Reports

Ensure that, as much as possible,

marketing of the brand is done in a way
that reflects the spirit of the charter and
the substance of the report

STRATEGIC BRAND MANAGEMENT

Conducting the Brand Audit

A brand audit is a comprehensive examination
of a brand involving activities to assess the
health of the brand, uncover its sources of equity
and suggest ways to improve and leverage that
equity.
A brand audit requires understanding sources of
brand equity from the perspective of both the
firm and the consumer.
Specifically, the brand audit consists of two
activities:
Brand Inventory
Brand Exploratory

STRATEGIC BRAND MANAGEMENT

Brand Inventory
The purpose of the brand inventory is to
provide a complete, up-to-date profile of how
all the products and services sold by a
company are marketed and branded.
For each product, the relevant brand
elements must be identified, as well as the
supporting marketing program.
This
information should be summarized both
visually and verbally.
Although primarily a descriptive exercise,
some useful analysis can be conducted.
Consistency

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Brand Exploratory
The brand exploratory is research activity designed
to identify potential sources of brand equity.
The brand exploratory provides detailed information
as to what consumers think of and feel about the
brand.
Although reviewing past studies and interviewing
relevant personnel provides some insights, additional
research is often required.
To allow a broad range of issues to be covered and
also permit those issues to be pursued in-depth,
qualitative research techniques are often employed
first.
To provide a more specific assessment of the sources
of brand equity, a follow-up quantitative phase is
often necessary.

STRATEGIC BRAND MANAGEMENT

Brand Equity Measurement

System
Implementing this system involves:
Conducting brand audits.
Brand Inventory
Brand Exploratory

Developing tracking procedures.

Designing a brand equity management
system
Brand Equity Charters
Brand Equity Reports
Brand Equity Overseers

STRATEGIC BRAND MANAGEMENT

THANK YOU