Brand Management

Brand Management

Brand Equity and Measurement

Christ with the Adulteress

Han van Meegeren sold this ‘Vermeer’ to Goering for US$7m in today’s money.

Rembrandt

• The parts of our brain associated with pleasure respond differently to a genuine Rembrandt if we are told it is a fake (Huang et al 2011)

• Rembrandt Research Project 1968 found several paintings to not be originals and value dropped overnight from £2m to <£100k

• This idea of name value is at the heart of brand equity

• There is a value to a brand over and above the intrinsic value of the product

Brand Equity

• “A set of brand assets & liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or that firm’s customers.”

(Aaker 1991: 55)

• Customer Perspective (understanding BE) – comes first as it is what will determine the brand’s success

• Financial Perspective (valuing BE) – considers the asset value of the brand to the company. • Follows on from the customer’s perception of added value • ‘The financial value of a brand is a result of brand equity …and not

the definition of brand equity.’ (Rossenbaum-Elliott et al 2015 pp102)

Brand Equity Concept

• Begins to feature in asset value of a company in the 80s due to the high volume of M&A among large brands

• Pre-1980s brands acquired at 8:1 price paid to earnings

• Post-1980 upwards of 20:1 • ‘Balance sheets reflect bad management decisions

in the past, whereas the brand is a potential source of future profits’ (Kapferer 1998)

Consumer-Based Brand Equity

Franzen (1999)

• Mental Brand Equity - awareness, perception, and attitude

• Behavioural Brand Equity – purchase behaviour • BE as assets and liabilities in the four categories:

Awareness, associations, perceived quality, and loyalty

Customer-Based Brand Equity “The differential effect of brand knowledge on consumer response to the

marketing of the brand.” (Keller, 1993: 2)

Differential effect

• Consumer prefers one brand over others in blind vs. branded tests of identical products (i.e. value of brand name).

Brand knowledge

• Strength, types, and uniqueness of consumer memory associations of the brand (brand image); and the recall strength of the memory traces (brand awareness)--arising from marketing mix activity.

“Set of perceptions, attitudes, knowledge, and behaviors on the part of consumers that results in increased utility and allows a brand to earn greater volume or greater margins than it could without the brand name”. (Christodoulides and de Chernatony 2010)

Customer Based Brand Equity

1. Identity Who are you?

2. Meaning What are you?

3. Response What about you?

4. Relationships What about you and

me?

Stages of Brand Development

Branding objective at each stage

Deep, broad brand awareness

Points of parity and difference

Positive, accessible reactions

Intense, active loyalty

AKA Brand Resonance Model

Keller et al 2013

Keller 2001

Salience

Performance Image

Judgements Feelings

Resonance

Social Brands

Social brands: • Help individuals indicate to themselves

and others that they identify with a specific behavior (Kirby 2001) • Represent what the behavior means to

people (Lefebvre 2011) • Transcend the constraints of literacy

(Lefebvre 2011) • Can have a campaign brand and behavior

brand (Mulcahy et al 2015)

Social Brand Equity

Naidoo and Abratt 2018

Measuring Sources of Brand Equity

Two Perspectives

1. Financial

2. Behavioral and Psychological

• Strength and nature – to develop long-term strategy (Rossenbaum- Elliott et al 2015 pp 161) • Which brands are seen by consumers as the most competitive? • How prominent or salient is a brand in the consumer’s mind relative to

other competing brands? • What are the key dimensions of a brand’s Identity and how do consumers

single it out from competitors?

• Qualitative and Quantitative • Neal and Strauss (2008) suggest that the optimal way of

determining brand equity is by evaluating the price premium that consumers are willing to pay for a branded product or service, compared to an equivalent unbranded product or service

Brand Equity

Brand Loyalty

Brand Awareness

Brand Quality

Brand Associations

Brand Image

Other Brand Assets

Brand Equity

Brand Awareness

Brand Recall

Brand Recognition

Brand Image

Association Types

Association Strength

Association Favorability

Association Uniqueness

Aaker (1997) Keller (1993)

Brand Equity Research - Qualitative

• Qualitative • Motivation:

• Probing - Don’t ask ‘Why do you buy this brand?’ (we’re not introspective about our behavior as consumers) but rather get under the surface with questions like: ‘how do you feel when you buy this brand?’ and ‘what else makes you feel this way?’

• Projective techniques – ‘Why do your friends use this product?’ or use cartoon characters is brand usage situations and let participants fill out speech bubbles

• Benefit Structure – word associations about your category • Laddering - ‘What comes to mind when I say

savings?’….’security’….’And what does security make you think of?’

Brand Equity Research - Quantitative

• Quantitative • Salience – ‘list all brands that come to mind for x category’ – first mentions vs total

mentions to uncover top of mind • Preference/Substitutes – How willing to accept or purchase substitute? • Price Elasticity – Upside/Downside • Loyalty – behavior (RFV) and attitude (net promoter score) • Lassar et al 1995 – performance, value, social image, trustworthiness, commitment

CBBE Model can also be used to Measure • Recall – identification of brand given a

cue or probe

• Recognition – ability to identify the brand in a variety of circumstances

• Type, favorability, and strength of brand associations

Keller et al 2013

Creating Brand Equity

Aaker (1995)

1. Brand Identity

2. Value Proposition

3. Brand Position

4. Execution

5. Consistency over time

6. Brand System

7. Brand Leverage

8. Tracking brand equity

9. Brand responsibility

10.Invest in Brands

Questions?

Some References

Aaker, D. (1995) Building Strong Brands Pocket Books.

Aaker, D. (1997). Managing brand equity. New York, NY: Free Press [u.a.].

Aaker David (2004). Brand Portfolio Strategy: Creating Relevance, Differentiation, Energy, Leverage and Clarity . Simon & Schuster

Braun T. (2004). The Philosophy of Branding: Great Philosophers Think Brands. London: Kogan Page.

Chiaravalle B. and S. F. Schenk (2006). Branding For Dummies. John Wiley & Sons.

de Chernatony, L., McDonald, M. and Wallace, E. (2010) Creating Powerful Brands. Butterworth Heinemann.

Doyle P. (1998). Value-Based Marketing. Wiley, UK.

Elliot, R. and Percy, L. (2007) Strategic Brand Management. Oxford Elliot, R. and Percy, L. (2007) Strategic Brand Management. Oxford University Press.

Some References (Cont’d)

Gale B. T. (1994). Managing Customer Value. New York: Free Press.

Kapferer, J. (2012) The New Strategic Brand Management: Advanced insights and strategic thinking. 5th Edition. Kogan Page

Keller, K. L., Aperia, T. and Georgsen, M. (2011) Strategic Brand Management: A European Perspective 2nd Edition. FT/Prentice Hall

Keller, K. L. (2000). 'The Brand Report Card', Harvard Business Review. February, pp. unknown.

Keller K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing, 57, January, 1-22.

Rosenbaum-Elliot, R., Percy L., and Pervan, S. (2015). Strategic Brand Management, 3rd Edition. Oxford: Oxford University Press..