Marketing Communications - Chapter 2

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Marketing Communications Challenges: CHAPTER 2 Enhancing Brand Equity, Influencing Behavior, and Being Accountable © 2010 South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie Cook All rights reserved. The University of West Alabama Eighth Edition
Chapter Objectives After reading this chapter you should be able to: 1. Explain the concept of brand equity from both the company’s and the customer’s perspectives. 2. Describe the positive outcomes that result from enhancing brand equity. 3. Appreciate a model of brand equity from the customer’s perspective. 4. Understand how marcom efforts must influence behavior and achieve financial accountability.. © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–2
Introduction: Introduction: Framework for Marcom Process Framework Desired Fundamental Implementation Outcomes Decisions Decisions Evaluation and Corrective Action © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–3
Basic IMC Issues Marketing Communicators How to How to affect How to justify How to enhance demonstrate customer marcom brand equity financial behavior investments accountability © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–4
Basic IMC Issues • What can marketing communicators do to What enhance the equity of their brands? enhance • How can marketing communicators affect the How behavior of their present and prospective customers? customers? • How can marketing communicators justify their How investments in advertising, sales promotions, and other marcom elements? other • How can marketing communications demonstrate How financial accountability? financial © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–5
Brand • Brand  Is a name, term, sign, symbol, or design.  Identifies and differentiates goods and services of one Identifies seller or group of sellers from those of the competition. competition.  Communicates a particular set of values. • Brand Equity  Can be considered either from the perspective of the Can organization that owns it or from the vantage point of the customer. © 2010 South-Western, aconsumers believe the brand can  Is valuable when Is part of deliver on its promises. deliver Cengage Learning. All rights reserved. 2–6
A Firm-Based Perspective on Brand Equity Effects of Brand Equity Increases Increased Higher Premium Revenue market share brand loyalty pricing premiums © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–7
Children’s Taste Preferences (In percents) Table 2.1 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–8
Brand Equity Increases • Revenue Premium  The revenue differential between a branded item and The a corresponding private labeled item. corresponding  Revenue premium for a branded item (b) compared to compared a private label (pl) = private (volumeb)(priceb) – (volumepl)(pricepl) © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–9
A Customer-Based Brand Equity Framework Figure 2.1 © 2010 South-Western, a part of Cengage Learning. All rights Source: Adapted from Kevin Lane Keller, “Conceptualizing, Measuring, and Managing reserved. 2–10 Customer-Based Brand Equity,” Journal of Marketing 57 (January 1993), 7.
Forms of Brand Knowledge • Brand Awareness  Whether a brand name comes to mind when Whether consumers think about a particular product category consumers  The ease with which the name is evoked • Brand Image  The types of associations that come to the The consumer’s mind when contemplating a particular brand brand • Top-of-Mind Awareness (TOMA)  Occurs when a brand is the first brand that Occurs © 2010 South-Western, a when thinking about brands in a consumers recall part of particular product category. particular Cengage Learning. All rights reserved. 2–11
The Brand Awareness Pyramid Figure 2.2 © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–12 Source: David A. Aaker, Managing Brand Equity (New York: Free Press, 1991), 62.
Brand Associations Brand image associations that build brand equity Positive Perceived Favorable Attributes Benefits Attitude © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–13
Dimensions of Brand Personalities Sincerity Competence Excitement Ruggedness Sophistication © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–14
Ways of Enhancing Brand Equity Enhancing Brand Equity Message-Driven Speak-for-Itself Leveraging © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–15
Leveraging Brand Meaning from Various Sources Figure 2.3 © 2010 South-Western, a part of Cengage Learning. All rights Source: Kevin Lane Keller, “Brand Synthesis: The Multidimensionality of Brand Knowledge,” reserved. 2–16 Journal of Consumer Research 29 (March 2003), 598. By permission of the University of Chicago Press.
Types of Branding for Leveraging • Co-Branding  A partnership between two brands • Ingredient Branding  Inclusion of one brand within the other © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–17
What Benefits Result from Enhancing What Brand Equity? Brand • Increased consumer loyalty • Long-term growth and profitability for the brand • Maintain brand differentiation from competitive Maintain offerings offerings • Insulate brand from price competition © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–18
Measuring World-Class Brands Measuring Evaluating World-Class Brands Salience Quality Equity © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–19
Characteristics of a World-Class Brand • Delivers benefits • Brand helps build brand Delivers Brand consumers want equity consumers equity • Stays relevant • Brand’s managers Brand’s understand what the • Price equals value brand means to • Good positioning consumers consumers • Support over long run • Consistency • Monitoring of the sources • Fits into brand portfolio Monitoring of brand equity of © 2010 South-Western, a part of Cengage Learning. All rights reserved. 2–20