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Chapter 3

The document discusses brand resonance and the brand value chain. It defines brand resonance and describes the steps to build brand resonance. It also defines the brand value chain and identifies the stages in the brand value chain. Finally, it contrasts brand equity with customer equity.
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0% found this document useful (0 votes)
38 views

Chapter 3

The document discusses brand resonance and the brand value chain. It defines brand resonance and describes the steps to build brand resonance. It also defines the brand value chain and identifies the stages in the brand value chain. Finally, it contrasts brand equity with customer equity.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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Strategic Brand Management: Building,

Measuring, and Managing Brand Equity


Fifth Edition, Global Edition

Chapter 3
Brand Resonance and
the Brand Value Chain

Copyright © 2020 Pearson Education Ltd. All Rights Reserved


Learning Objectives
• Define brand resonance
• Describe the steps in building brand resonance
• Define the brand value chain
• Identify the stages in the brand value chain
• Contrast brand equity and customer equity

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Building A Strong Brand: The Four
Steps of Brand Building
• Brand salience
• Brand performance
• Brand imagery
• Brand judgments
• Brand feelings
• Brand resonance
• Brand-building implications

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Brand Salience

Breadth and Depth of


Awareness

Product Category Structure

Strategic Implications

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Brand Performance
 Describes how well the brand:
 Meets customers’ more functional needs
 Rate on objective assessments of quality

 Satisfies utilitarian, aesthetic, and economic customer


needs and wants in the product or service category

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Brand Imagery
• User profile/imagery
• Purchase and usage situations/imagery
• Brand personality and values
• Brand history, heritage, and experiences

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Purchase and usage situations

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Nostalgia/Memories

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 Sincerity

Examples Brand Personality  Excitement

 Competence

 Sophistication

 Ruggedness

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Examples Brand Personality
 Sincerity

 Excitement

 Competence

 Sophistication

 Ruggedness

Copyright © 2020 Pearson Education Ltd. All Rights Reserved


Examples Brand Personality

 Sincerity

 Excitement

 Competence

 Sophistication

 Ruggedness

Copyright © 2020 Pearson Education Ltd. All Rights Reserved


Examples Brand Personality

 Sincerity

 Excitement

 Competence

 Sophistication

 Ruggedness

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Brand Judgements
 Quality
 Credibility
 Consideration
 Superiority

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Brand Feelings
 Customers’ emotional responses and reactions to the
brand
 Relate to the social currency evoked by the brand
 Feelings can be:
 Experiential and immediate, increasing in level of
intensity
 Private and enduring, increasing in level of gravity

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Copyright © 2020 Pearson Education Ltd. All Rights Reserved
Copyright © 2020 Pearson Education Ltd. All Rights Reserved
Copyright © 2020 Pearson Education Ltd. All Rights Reserved
Copyright © 2020 Pearson Education Ltd. All Rights Reserved
Copyright © 2020 Pearson Education Ltd. All Rights Reserved
Brand Resonance
• Behavioral loyalty
• Attitudinal attachment
• Sense of community
• Active engagement

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Brand Resonance Pyramid
4.
RELATIONSHIPS
=
What about you
RESONANCE and me?
3.
RESPONSE
=

JUDGMENT FEELINGS What about


S you?

2.
MEANING
=
What are
PERFORMANCE IMAGERY you?
1.
IDENTITY
=
Who are
SALIENCE
you?

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Sub-Dimensions of CBBE
Pyramid
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATIO SECURITY
N SOCIAL
SUPERIORITY APPROVAL
SELF-RESPECT

PRIMARY USER PROFILES


CHARACTERISTICS & PURCHASE &
SECONDARY FEATURES USAGE
PRODUCT RELIABILITY, SITUATIONS
DURABILITY & PERSONALITY &
SERVICEABILITY VALUES
SERVICE EFFECTIVENESS, HISTORY,
EFFICIENCY & HERITAGE
EMPATHY &
STYLE AND DESIGN EXPERIENCES
PRICE CATEGORY IDENTIFICATION
NEEDS SATISFIED

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Resonance
• Intense Active Loyalty
•Apple Lifestyle & Communities
• Apple Collectors/ Aficionados

Judgments
• High Quality (Precision &
Engineering) Feelings
• Innovation • Cutting Edge • Social Status • Customer
Technology Satisfaction • Feeling Proud,
• Quality at the premium price Comfortable, Satisfied
• Product Centric
Performance
• Greater Support for Multi Tasking
Imagery
•Smooth User Experience
• Human Silhouette • White
• User Friendly • Speed
• Exclusivity • Shell Shape •
Performance
Translucent Pearl White
• Unique Operating System • High
•Steve Jobs
Price
• Serviceability • Long Lasting

Salience
APPLE – THINK DIFFERENT
Ipod, Macbook, Ipad, I Tunes

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The Brand Value
Chain

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Value stages
• Marketing Program Investment
– Any marketing investment that can contribute to the value of the brand.
– Its success is enhances by the multipliers

▪ Clarity: How understandable is the program


▪ Relevance: How meaningful is the program
▪ Distinctiveness: How unique is the program
▪ Consistency: How cohesive or integrated is the program

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Customer Mind-set

 Awareness: The extent to which customers recall and


recognize the brand.

 Associations: Strength, favourability and uniqueness of


perceived attributes of the brand

 Attitudes: Overall evaluations of the brand

 Attachments: Degree of loyalty customers feel towards a


brand
Adherence
Addiction

 Activity: Extent to which customers use the brand, talk


about it, seek out information, promotions and so on

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Customer Mind-
29

Set
Awareness

Associations (Image)

Attitude (Intention;
Acceptability)

Attachment (Loyalty;
Addiction)

Activity (WOM)
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Marketplace conditions
multiplier

• Competitive superiority: how effective are the marketing


investments of competiting brands

• Channel and other intermediary support: how much


brand reinforcement and selling effort is being put forth
by the marketing partners

• Customer size and profile: what types of customers are


attracted to the brand

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Market Performance

 Price Premiums and Elasticity


 How much extra are consumers willing to spend on
the product because of the brand?
 Effect of price on demand

 Market share
 Whether marketing programs are increasing sales

 Brand Expansion
 Brand extensions become easier
 Adds enhancements to revenue systems

 Cost Structure
 Reduced Marketing Expenditure????
All efforts are likely to be more effective
Same effectiveness can be achieved at lower cost

 Brand Profitability

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Investor sentiment multiplier
• Market Dynamics
• Interest rates, supply of capital

• Growth Potential
• Prospects of brand
• Prospects of industry
• PEST

• Risk Profile
• How vulnerable is the brand

• Brand Contribution
• How important is the brand to the firm’s portfolio

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Brand Building Implications
• Customers own the brand
• Don’t take shortcuts with brands
• Brands should have a duality
• Brands should have richness
• Brand resonance provides important focus

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To Sum up...
 Implications of brand value chain
A necessary condition for value creation is a well-funded,
well-designed, and well-implemented marketing program
 Value creation requires more than the initial marketing
investment
 Allows to estimate shareholder value and the investor
sentiment multiplier through investor analysis and
interviews

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