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Brand Value & Positioning

Brand equity refers to the added value provided to products and services due to the brand, which influences how consumers think about, feel about, and interact with the brand. There are two types of brand equity: customer brand equity, which is the extra value for customers over an unbranded version, and firm brand equity, which is the increased cash flow from attracting and retaining customers compared to an unbranded alternative. High customer brand equity can provide benefits like price premiums and increased sales volume for the firm. Brand equity can be measured using models like Aaker's Brand Asset Valuator, which evaluates elements like brand differentiation, brand reputation, brand knowledge, and marketing program. Effective brand positioning involves designing the brand's offering

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63 views21 pages

Brand Value & Positioning

Brand equity refers to the added value provided to products and services due to the brand, which influences how consumers think about, feel about, and interact with the brand. There are two types of brand equity: customer brand equity, which is the extra value for customers over an unbranded version, and firm brand equity, which is the increased cash flow from attracting and retaining customers compared to an unbranded alternative. High customer brand equity can provide benefits like price premiums and increased sales volume for the firm. Brand equity can be measured using models like Aaker's Brand Asset Valuator, which evaluates elements like brand differentiation, brand reputation, brand knowledge, and marketing program. Effective brand positioning involves designing the brand's offering

Uploaded by

Harish SAEINDIA Marketing
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Brand Value &

Positioning
What is Brand Equity?
Brand equity is the added value endowed
on products and services, which may be
reflected in the way consumers, think, feel,
and act with respect to the brand.
Definitions
Customer Brand Equity – brand value to customers
Value received by individual customers from a branded product
or service, over and above the value received from an
unbranded version of the same product or service.
Firm Brand Equity – brand value to the firm
Ultimately measured by the cash flow streams resulting from
the brand’s ability to attract, retain, and grow customers, over
and above an unbranded alternative.
Customer Brand Equity
Pre-purchase equity
The value the customer receives by virtue of information
contained in brand names or other signifiers. This value
reduces both the customer’s search costs and the economic
and psychological risk.
Post-purchase equity
The value the customer receives when the brand enhances the
consumption experience. Brands transform the consumption
experience by offering such psychological benefits as status
and prestige. Brands may also provide the assurance of
continued functional benefits, and such economic benefits as
low cost of ownership.
High Customer Brand Equity – Impact on Firm Brand Equity:
Illustration – Toyota Corolla versus GM Geo Prizm
$11,500

Toyota Corolla
$11,000 $11,100

Wholesale GM Geo Prizm


Price Premium – $400
Price ($) $10,700
80,000 200,000
$10,500 Volume Benefit
120,000 units

$10,000
0 100,000 200,000
Annual Quantity Sold
High Customer Brand Equity – Impact on Firm Brand Equity:
Illustration – Toyota Corolla versus GM Geo Prizm

Toyota benefit = 120,000 x $400


= $48 million
Brand Equity Models

 Brand Asset Valuator


 Aaker Model
 BRANDZ
 Brand Resonance
Brand Knowledge
Thoughts Feelings

Knowledge

Images
Beliefs
Experiences
BAV Key Components for
measurement
Differentiation
Degree of difference

Energy
Brand momentum

Relevance
appeal

Esteem
Respect & regard

Knowledge
Familiarity & intimacy
Young & Rubicam Brand Asset Valuator Patterns of Brand Equity
Brand Dynamics Pyramid
Strong Relationship

Bonding
Nothing beats it
Advantage
Better offering
Performance
Can it deliver
Relevance
Is it relevent to you
Presence
Do you know about it
Weak Relationship
Aaker Model
Core Identity
Brand Identity Elements
Spirit of excellence
Technology that fits

Extended Identity Brand Essence


Elements Global network
Open communicator Local expert
Confident and competent
Brand Resonance Pyramid
Brand Health Check
Type of Measure Measure Description of Measure

Purchasing and sales Market breadth Number and type of customers purchasing the brand

Market depth Extent of repeat purchase

Market share Brand sales as a percentage of total market sales (units and/or dollars)

Perceptual Awareness Degree of brand awareness

Brand image Brand associations, congruence with brand identity

Quality Perception of brand quality (from blind tests)

Uniqueness Extent of differentiation from competition

Value Extent to which the brand provides good value for money

Marketing support Market share/advertising share


Advertising
Advertising/total marketing spend

Extent of distribution coverage in target outlets


Distribution
For retail goods, quality of display, especially key accounts

Relative price Price compared to competitive brands

Profitability Gross margin earned from the brand


Profit
Economic value added (EVA) of the brand
Managing Brand Architecture
• Umbrella branding versus multi-branding

• Brand broadening (leveraging)


• Brand migration
• Associate old brand with new brand
• Drop old brand
• Alliances and partnerships
• Aging and defunct brands
• Target new market segment (s)
• Change brand associations
• Alter competitor target
What is Positioning?
Positioning is the act of designing the
company’s offering and image to occupy a
distinctive place in the mind of the target
market.
Defining Associations
Points-of-difference Points-of-parity
(PODs) (POPs)
• Attributes or benefits • Associations that
consumers strongly are not
associate with a
brand, positively necessarily
evaluate, and believe unique to the
they could not find to brand but may be
the same extent with a shared with other
competitive brand brands
Differentiation Strategies

Product Personnel

Channel Image
Personnel Differentiation:
Singapore Airlines
Nature’s
Basket
Image Differentiation

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