Unit 3- Brand Mgmt

8/3/2019 Unit 3- Brand Mgmt

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Developing a

Brand Equity Measurement

&Management system


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Establishing brand equity

management system

Brand equity mgmt sys is a set of organizational

process designed to improve understanding &use of the brand equity concept within the

firm.

3 Steps that helps in implementing BEMS :

Brand equity charter.

Brand equity reports.

Brand equity responsibilities.


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Brand Equity Charter

It provides relevant guidelines to the marketingmanager within the company & to the key

marketing partners outside the company like

the ad agency staff.It should do the following:

Define the firms view of the brand equity

concept & explain why it is important. Specify what actual & desired equity is for a

brand .


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Brand Equity Report

Assemble the result of tracking survey & other

relevant performances measures for the

brand into a brand equity report or scorecard

to be distributed to the mgmt on a regular

basis.

Tracking survey/studies collecting info from

consumers on routine basis over time.(less

detailed brand related info.)


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Brand Equity Responsibilities

Overseeing brand equity:

For central coordination the firm should

establish a position entitled vice president ordirector of strategic brand mgmt or brand

equity mgmt. this person is responsible for

implementation of the brand equity charter &

brand equity reports


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Organizational design & structures :

The firm should organize its marketing functions

to optimize brand equity .

Various industries like automobile, health care,

pharmaceuticals , computer h/w & s/w are

introducing brand managers into their orgs.


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Managing marketing partners :

Since the performance of a brand also

depends on the action taken by outsidesuppliers & marketing partners ,firms mustmanage these relationship carefully.

Firms are now a days reducing their no. ofoutside suppliers. They are placing theirbusiness with one agency.

Eg: Colgate Palmolive works alone with Young& Rubicam.


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Measuring sources of brandequity :

Capturing customer mindset


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Qualitative Research Techniques

Its the unstructured measurement

approaches that permit a range of possible

consumer responses.

It often identifies the brand associations &

sources of brand equity.


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1. Free associations :

Asking consumers to tell what comes into

their mind when they think of the brand.

Eg: what does Rolex name means to you?

Free association gives a rough indication of

the relative strength ,favorability &

uniqueness of brand.


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2. Projective techniques:

Under some situations consumers may feel that itwould be socially unacceptable to express theirtrue feelings especially to an interviewer whomthey dont even know.

Projective techniques are the tools to uncover thetrue feelings& opinions of consumers .

The consumers is provided with an incompletestimuli and are asked to make sense of it or

complete it.


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Few projective techniques are:

completion & interpretation tasks Bubble exercise depict different people

buying different products , empty bubbles ,as

in cartoons , are placed in the the scene torepresent the thoughts , words ,action of one

or more participant. The consumers are then

asked to fill in the bubble by indicating what

they believe is happening or being said in the

scene


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Comparison tasks

Ask consumers to express their feelings by

comparing brands to people , animal ,

countries, cars , magazine , vegetables ,

fabrics, etc.

Eg:

Association Bush Kerry

Technology IBM Apple

Auto Ford BMW


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3. Zaltman metaphor elicitation technique :

Its based on the belief that consumers often

have subconscious motives for their

purchasing behavior . That's why its important

to find out the hidden knowledge

to get at what people dont know they know.

Its based on the idea that most of the

communication is non verbal.


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This study starts with a group of participants whoare asked in advance to think about the researchtopic at hand & select minimum of 12 imagesfrom their own sources (magazine, family photoalbum) that represents their thoughts andfeelings about the research topic.

The participants then brings these images for 2hour interview with the study administrator whouses advanced interview technique to explore theimages & reveal the hidden meaning.

Finally the participants use a computer programto create a collage with these images thatcommunicates their subconscious thoughts &feelings about the topic.


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4. Brand Personalities & Values :

Brand personality is the human characteristics

that consumers can attribute to a brand.

Eg: if Campbells soup were to be described as

a person , one possible response might be

Mrs. Campbell is a rosy cheeked & plumpgrandmother who lives in a warm , cozy house

& wears an apron as she cooks wonderful

things for her grandchildren.


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5. Experiential methods :

The researchers were sent to the consumers

homes to see how they approach their day ,

cameras & diaries were provided to capture

their feelings.

Hours of footage are then condensed intodocumentary like 30 min videos to help

marketers & the agency see how people

communicate and interact in different real lifesituations.


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Quantitative Research Techniques

It generates some verbal responses from theconsumers.

1. Brand awareness : strength of brand in memory ,as reflected by consumers ability to identify

various brand elements like brand name, logo,under different situations.

Recognition

Recall -

unaided recall

Eg: Please tell me all the brands of mobilephones you can think of.


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aided recall

Eg: Please look at these brands: A, B, C, and D.

Which one do you use?

Correction for guessing :

Make sure that the consumers is not making

up the response.


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2. Brand image : distinguish between -

Lower level considerations related to consumers

perceptions of specific performance & imageryattribute & benefits

Higher level considerations related to overalljudgment , feelings & relationship.

Beliefs (descriptive thoughts that a person holdsabout something)

Eg : for Sony video games consumers have a

belief that its -exciting & fun

cool

colorful

advanced technology


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3. Brand responses :

Purchase intentions

It focuses on the likelihood of buying the brand orof switching to another brand. The purchaseintention can determine the actual purchasewhen there is correspondence b/w the 2 in these

categories : Action ( buying for own use or to give as a gift)

Target ( specific type of brand & product)

Context ( what type of store based on what prices& other conditions)

Time (within a week , month , year)


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4. Brand relationship :

Behavioral loyalty to find this ask consumersvarious questions directly.

Eg : manager of duracell batteries might askfollowing questions :

Which brand of batteries do you usually buy?

Which brand of batteries did you buy last time?

Do you have any batteries on hand? Which

brand? Which brand of batteries will you buy next time?


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Brand substitutability:

Answer these 2 questions :

1. Which brand did you but last time?

2. If the brand had been not available ,what

would you have done?

Based on the answers we can place consumers

into 6 segments:

1. People who bought your brand last time &

who would have waited or gone to another

store to buy your brand.


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Fournier gave the concept of

brand relationship quality

The 6 main aspects of BRQ are:

1. Interdependence

2. Self concept connection

3. Commitment

4. Love/passion

5.I

ntimacy6. Partner quality.


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Measuring Outcomesof Brand Equity :

Capturing market

performance


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Comparative Methods

These are the experiments that examine consumer attitudes andbehaviour toward a brand, to more directly assess the benefitsarising from having a high level of awareness and strong, favourable,and unique brand associations.

Brand-based comparative approaches (BBCA)

Marketing-based comparative approaches (MBCA)

Conjoint analysis (CA)


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Brand-based comparative

approaches:

Experiments in which one group of consumersresponds to an element of the marketing programwhen it is attributed to the brand and another groupresponds to that same element when it is attributedto a competitive or fictitiously named brand.

This approach holds marketing program

fixed Examines consumer response based on

brand identification


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Marketing-based comparative

approaches:

Experiments in which consumers respond to

changes in elements of the marketing

program for the brand or competitive brands.

Hold the brand fixed

Examines consumer response based tochanges in the marketing program


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Conjoint analysis:

A survey-based variable technique that enablesmarketers to profile the consumer buying decisionprocess with respect to products and brands.

Ask consumers to express their preferences or tochoose among a number of carefully designedproduct profiles.

Goal:

Determine the trade-offs consumers are makingbetween various brand attributes, and thus theimportance they are attaching to them.


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Holistic Methods

Holistic methods place an overall value on the

brand in either an abstract utility(usefulness)

terms or in financial terms.

Therefore holistic methods attempt to assess

the unique contribution of the brand to over

all product equity.


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Two Approaches :

1. The residual approach which examines the

value of the brand by subtracting consumers

preference for the brand (based on physical

product attributes alone) from the over all

brand preference.

Residual value = Overall brand preference -

consumer preference


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2. Valuation Approaches

The valuation approach places a financial value

on brand equity for accounting purposes.

Putting a specific value on brands may be useful

for -

1. Mergers and acquisitions.

2. Branding licensing.

3. Fund raising.

4. Brand management decisions (allocate

resources , develop brand strategies)


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a.Historical perspective -

Grand Metropolitan first British company toplace monetary value on the brand it owned & to

put that value on its balance sheet.

G

rand Met used two different methods,

1. If a company consisted of one brand, it was saidthat the brand value was 75% of the purchaseprice.

2. Whereas if the company consisted of manybrands, a multiple of an income figure wasused.


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b.General Approaches

When firms need to determine the value of abrand in an acquisition or merger, they can

choose from three main approaches.

1. Cost approach

2. Market approach

3. Income approach


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The Cost Approach

The cost approach maintains that brand equity is

the amount of money that would be required toreproduce or replace the brand.

The Market Approach

Brand equity is the amount an active marketwould allow so that the asset would exchange

between a willing buyer and seller.

The Income Approach

Argues that brand equity is the future discounted

cash flow from the future earnings stream for the

brand.


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Unit 3- Brand Mgmt

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Transcript of Unit 3- Brand Mgmt