STRATEGIC BRAND MANAGEMENT BUILDING, MEASURING, AND MANAGING BRAND EQUITY Kevin Lane Keller Kafli 2 21. september 2004

Motivation for Customer-Based Brand Equity Model Marketers know strong brands are important but aren’t always sure how to build one. CBBE model was designed to be … comprehensive cohesive well-grounded up-to-date actionable

MARKETING PLANNING PROCESS Complex, Varied Marketing Activity Detailed, Rich Marketing Models Comprehensive, Robust Marketing Measures

Rationale of Customer-Based Brand Equity Model Basic premise: Power of a brand resides in the minds of customers Challenge is to ensure customers have the right types of experiences with products & services and their marketing programs to create the right brand knowledge structures: Thoughts Feelings Images Perceptions Attitudes

Building Customer-Based Brand Equity Building a strong brand involves a series of steps as part of a “branding ladder” A strong brand is also characterized by a logically constructed set of brand “building blocks.” Identifies areas of strength and weakness Provides guidance to marketing activities

CUSTOMER-BASED BRAND EQUITY PYRAMID RESONANCE SALIENCE JUDGMENTS FEELINGS PERFORMANCE IMAGERY 4. RELATIONSHIPS = What about you & me? 3. RESPONSE = What about you? 2. MEANING = What are you? 1. IDENTITY = Who are you?

Salience Dimensions Depth of brand awareness Ease of recognition & recall Strength & clarity of category membership Breadth of brand awareness Purchase consideration Consumption consideration

Performance Dimensions Primary characteristics & supplementary features Product reliability, durability, and serviceability Service effectiveness, efficiency, and empathy Style and design Price 23

Imagery Dimensions User profiles Purchase & usage situations Demographic & psychographic characteristics Actual or aspirational Group perceptions -- popularity Purchase & usage situations Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage Personality & values Sincerity, excitement, competence, sophistication, & ruggedness History, heritage, & experiences Nostalgia Memories

Judgment Dimensions Brand quality Brand credibility Value Satisfaction Brand credibility Expertise Trustworthiness Likability Brand consideration Relevance Brand superiority Differentiation

Feelings Dimensions Warmth Fun Excitement Security Social approval Self-respect

Resonance Dimensions Behavioral loyalty Attitudinal attachment Frequency and amount of repeat purchases Attitudinal attachment Love brand (favorite possessions; “a little pleasure”) Proud of brand Sense of community Kinship Affiliation Active engagement Seek information Join club Visit web site, chat rooms

Customer-Based Brand Equity Model Consumer- Brand Resonance Brand Salience Consumer Judgments Consumer Feelings Performance Imagery INTENSE, ACTIVE LOYALTY RATIONAL & EMOTIONAL REACTIONS POINTS-OF-PARITY & POINTS-OF-DIFFERENCE DEEP, BROAD BRAND AWARENESS

Sub-Dimensions of CBBE Pyramid LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT QUALITY CREDIBILITY CONSIDERATION SUPERIORITY WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT CATEGORY IDENTIFICATION NEEDS SATISFIED PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE, & EXPERIENCES

Application: Identify the key drivers of brand equity Performance P-1 P-10 P-7 P-8 P-9 P-3 P-4 P-6 P-5 P-11 P-12 I-2 I-9 Imagery I-1 I-3 I-6 I-5 I-10 I-7 I-8 I-11 I-12 I-4 F-2 Feelings F-1 F-3 F-4 F-6 F-5 F-7 F-8 F-9 F-11 F-12 F-10 J-2 Judgment J-1 J-3 J-4 J-6 J-5 J-10 J-7 J-8 J-9 J-11 J-12 0.17 0.66 0.24 0.65 R-2 Resonance R-1 R-3 R-4 R-6 R-5 R-10 R-7 R-8 R-9 R-11 R-12 0.58 0.49