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Building, Measuring, and LeveragingStrong Brands
Professor Steve Hoeffler
Beta Gamma Sigma: Atlanta Area Alumni Chapter
Tuesday, February 19th
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Branding: Roadmap and Sources
1) Define Brand Equity
2) Evaluate a Model for Building Brand Equity
3) Use Starbucks example throughout for hands-on learning
Sources:
1) Strategic Brand Management
by Kevin Lane Keller
2) The Marketing Advantages of Strong Brands
by Steve Hoeffler & Kevin Lane Keller
(Journal of Brand Management, Aug, 2003)3)Building Brand Equity through Corporate Societal Marketing
by Steve Hoeffler and Kevin Lane Keller
(Journal of Public Policy and Marketing, Spring, 2002)
4) How Social-Cause Marketing Affects Consumer Perceptions
by Paul Bloom, Steve Hoeffler, and Kevin Lane Keller
Sloan Management Review, Winter 2006
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First: Lets understand what a brand is
What Do You Think Of When You Hear?
Cadillac
At your table -- discuss all of the thoughts that come to mind
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Understanding brands:How information about brands is stored
Associative Network Memory Model network of nodes and links
nodes: stored information or concepts
links: strength of the association between nodes
Accurately portrays in detail all salient brand associations andresponses for a particular target market (e.g., brand users)
Can create a mental map by asking consumers for their top-of-mind brandassociations (e.g., When you think of this brand, what comes to mind?). Performance (product-related)
Imagery (non-product-related)
Recall: based on the concept of spreading activation
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Starbucks Mental Map - Team Exercise
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Components of Brand Knowledge:
Brand Awareness = strength of the brand node or tracein memory Brand Recall (retrieval given need, product category or some cue)
Key to Recall: linkages to Product Category, Purchase Situation,Usage Situation
Brand Recognition (confirm prior exposure)
Increase familiarity through repeated exposure Hence the importance of Integrated Marketing Communications
Use a wide range of communications options Advertising, Promotions, Sponsorship, PR
Depth versus Breadth of Awareness Amazon example
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Components of Brand Knowledge:BRAND IMAGE
Brand Image = consumer perceptions of the brandas reflected by the associations held in memory
Brand Meaning based on the number and content of
nodes that are connected to the brand in memory For competitive advantage need:
Strong (based on amount of processing) (personal relevance, consistency)
Favorable (based on consumer needs)
Unique (associations not shared by competitors)
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Framework for understanding how strongbrands gain an advantage: CBBE Model
Customer Based Brand Equity (CBBE) = thedifferential effect that brand knowledge has onconsumer response to the marketing of the
brand Differential Effect (necessary)
Brand Knowledge (in the minds of consumers)
Consumer Response (perceptions, preferences, behavior)
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Building Brand EquityNEW FRAMEWORK
Most research on brands has focused onadvantages of strong brands
Less is known about the most effective ways to
build brand equity
New Framework: Core Brand Values Pyramid
developed by Kevin Keller building blocks to accomplish necessary steps to
building brand equity
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BRAND PYRAMID
4. RELATIONSHIPS =
What about you & me?
4. RELATIONSHIPS =
What about you & me?
3. RESPONSE =
What about you?
3. RESPONSE =
What about you?
2. MEANING =
What are you?
2. MEANING =
What are you?
1. IDENTITY =
Who are you?
1. IDENTITY =
Who are you?
INTENSE,
ACTIVE LOYALTY
INTENSE,
ACTIVE LOYALTY
POSITIVE,ACCESSIBLE
REACTIONS
POSITIVE,ACCESSIBLE
REACTIONS
STRONG, FAVORABLE& UNIQUE BRAND
ASSOCIATIONS
POINTS-OF-PARITY& DIFFERENCE
DEEP, BROAD
BRAND
AWARENESS
DEEP, BROADBRAND
AWARENESS
RESONANCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
SALIENCE
Stages of Brand
Development
Branding Objective at
Each StageBuilding Blocks
COLD HOT
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RECENT EXAMPLE: (COLD path of pyramid)Building Utilitarian associations to a Brand
Cadillac transforming their image via performance From Car and Driver Review:
With a folding hardtop that completely disappears at the touch of abutton, the XLR presents a sleek and clean profile
Under the XLRs hood lies its most significant major mechanicaldistinction the 4.6 liter Northstar V-8upgraded in a variety of waysfor improved performance, emissions, and fuel economy
New Ad Strategy is to move from heritage to performance
Early Ads showed classic Cadillacs morphing into models (heritage)
New Ads focus on performance (engineering & speed)
Benefits to revitalizing the Cadillac brand Average age of buyers has dropped
Resale values are rising
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Now What Do You Think Of?
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Brand Positioning
Essence: Brand has some sustainable competitive advantage(SCA) or unique selling proposition (USP) that gives consumers acompelling reason to buy that particular brand
Competition-Based Positioning Identify the Appropriate Category
Distinguish from Other Category Members on Important Dimension
Strongest Positions: Brand has Clear Point of Difference on Benefitthat Prompts Category Use
Example: Tide -- superior cleaning power
Image-Based or Goal-Based Positioning Depict Brand or Category as way to Satisfy Consumer Goal
Laddering Up Inferences are like rungs on a ladder and becomemore abstract and general as you go up
General Belief: Abstract > Competition
Brand Essence
Abstract Benefits
Benefits
Attribute/Image
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Recent Example: NASCARAssociations Positioning Behavior
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Recent Example: NASCARAssociations Positioning Behavior
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Recent Example: NASCARAssociations Positioning Behavior
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Recent Example: NASCARAssociations Positioning Behavior
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Brand Positioning:Understand Brand Meaning
Core brand associations
Set of abstract associations that characterize the 5-8 mostimportant aspects or dimensions of a brand.
Can serve as the basis of brand positioning in terms of how they
relate to points-of-parity and points-of-difference Challenge is to maximize the coverage of the mental map to
include all relevant associations while making sure each corebrand associations is as distinct as possible
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Starbucks Core Brand AssociationsTeam Exercise
1) 2)
3) 4)
5) 6)
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Brand PositioningConduct Competitive Analysis
Competitive frames of reference Nature of competition
Target market
Points-of-parity shared brand values Necessary
Competitive
Points-of-difference unique brand values Desirable Deliverable
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Starbucks Competitive PositioningTeam Exercise
Competitor
1) Fast food chains &convenience shops
POP
POD
2) Supermarket Brands(for home)
3) Local Caf
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Brand Positioning III:Capture Brand Essence
Brand mantras Short 3-to-5 word phrases that capture the irrefutable
essence or spirit of the brand. Nike = Authentic Athletic Performance
Disney = Fun Family Entertainment Brand mantra must clearly delineate what the brand is
supposed to represent and therefore, at leastimplicitly, what it is not
Brand mantras typically are designed to capture thebrands points-of-difference, i.e., what is unique aboutthe brand.
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Brand Mantras
To arrive at the final brand mantra, the following considerationsshould come into play.
Communicate. A good brand mantra should define the category (orcategories) of business for the brand and set the brand boundaries. It
should also clarify what is unique about the brand.
Simplify. An effective brand mantra should be memorable. As a result, itshould be short, crisp, and vivid in meaning.
Inspire. Ideally, the brand mantra would also stake out ground that is
personally meaningful and relevant to as many employees as possible.
Regardless of exactly how many words actually make up the mantra,however, there will always be a level of meaning beneath the brandmantra itself that will need to be articulated.
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Starbucks Brand MantraTeam Exercise
? ? ?
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Branding Takeaways
Brand Equity lies in the minds of consumers Mental Maps w/ Core associations, POP/POD, etc.
Lots of research and knowledge about the benefits thataccrue to strong brands
Less is known about the right way to build strong brands
Customer Based Brand Equity (CBBE) Model is useful overallframework for understanding brands
Core Brand Values Pyramid is useful framework for buildingstrong brands Need both Performance (Cold) or Emotional Aspects (Hot)
2 key types of positioning strategies (Competition andImage)