1. Brand Measurement Chapter One
An Introduction to Integrated Marketing Communications
Brand Measurement
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

2. Pros and Cons of Brand Measurement
Advantages
Disadvantages
Avoid costly mistakes
Cost of measurement
Evaluate alternative strategies
Research problems
Increase efficiency in general
Disagreement on what to test
Determine if objectives are achieved
Measure the wrong things
Time

3. Brand Measurement: Marketers’ Views
Issue
Agree
Brand Measurement is a key priority for today’s technology companies.
90%
I am dissatisfied with our ability to demonstrate marketing programs’ business impact and value.
80%
It is important to define, measure, and take concrete steps in the area of advertising accountability.
61.5%
I can forecast the impact on sales of a 10% cut in marketing spending.
37%

4. Essentials of Brand Measurement
Use a consumer response model
Use benchmark testing
Brand
Measurement
Establish communications objectives
Understand and implement proper research
Use multiple measures

5. Key to Evaluation
Tie evaluations to objectives
Like objectives, evaluation tools should be quantitative and statistically based
Determine evaluation tools before implementation
Get management buy-in up front

6. Two Evaluation & Measurement Strategies
Brand Equity – brand assets (or liabilities) linked to a brand’s name and symbol that add to (or subtract from) a product or services*
Brand Valuation – Assigning a dollar value to the brand
“Brand Leadership”, Aaker and Joachimsthaler

7. Brand Equity Dimensions & Constructs
Awareness
Perceived Quality
Association/ Differentia-tion
Loyalty
Market Behavior
Brand Awareness
Perceived Quality
Perceived Value
Price Premium
Market Share
Leadership
Brand Personality
Satisfaction
Price Indices
Organizational Associations
Distribution
Indices
Aakers, David “Measuring Brand Equity Across Products and Markets”

8. Brand Equity Assessment Criteria
Tap the full scope of brand equity
Focus on sustainable advantages not easily duplicated by competitors
Reflect the constructs that truly drive the market; are associated with future sales & profits
Movement on a measure will move price levels, sales or profits
Measures should be sensitive – when equity changes the measures reflect those changes
Applicable across brands, product categories & markets
Tested proven measures provide structure for developing a set of individual brand measures

9. Brand Awareness
The level of brand recognition that consumers have of a particular brand and its specific product category
Reflects the salience of the brand
Awareness levels
Recognition: Has heard of the brand
Recall: Brands that can be named
Top-of Mind: The first-named brand
Brand Dominance: The only brand recalled
Brand Knowledge: Knowing what the brand stands for
Brand Opinion: A value judgment of the brand

10. Perceived Quality
Special associations that occur in many contexts; empirically shown to affect ROI
Associated with price elasticities and brand usage
Associated with specific benefit variables
Measured as a scale in comparison to alternative brands
High vs. average vs. inferior
The best vs. one of the best vs. one of the worst vs. the worst
Consistent vs. inconsistent quality
“Brand Leadership”, Aaker and Joachimsthaler; Aakers, David “Measuring Brand Equity Across Products and Markets”

11. Perceived Quality - Leadership
Taps into market dynamics above quality
Leadership Dimension
The “Number 1” Syndrome
Product Class Innovation
Measured by scales
The leading brand, one of the leading brands, not a leading brand
Growing in popularity
Innovative, first with advances

12. Brand Associations - Definition
Anything that connects individuals to the brand. It can include
User imagery
Product attributes
Organization considerations
Brand personalities
Symbols
“Brand Leadership”, Aaker and Joachimsthaler

13. Brand Association - Value
Focuses on the brand value proposition
Brand value involves
a functional benefit
is usually basic to most
brands in its class
Brand value can be measured by
Provides good value for the money
Whether there are reasons to buy a brand over competitors

14. Precaution
Is brand value different from perceived quality? Perceived quality/price?
Brand value may relates more to functional benefits and utility
Perceived quality may have a higher association with prestige

15. Association – Brand Personality
Defined as “brand-as-a-person”
Provides links to emotional and self-expression benefits
Especially important where there are minor physical differences
Continuum is often product specific
Retail: Energy/Vitality
Telephone companies: friendly/reliable
Men’s products: rugged

16. Association – Organization Association
Brand-as-an-organization – NFL, Major League Baseball, PGA
Important basis for differentiation – product quality, innovation, credibility
Any of these characteristics are candidates for measurement scales

17. Brand equity’s core dimension
Brand Loyalty
A consumer’s commitment to repurchase the brand
When consumers like/consistently buy a
specific brand
Creates a barrier to entry
Brand equity’s core dimension

18. Measuring Loyalty – Price Premium
Price Premium – Amount a customer will pay vis-à-vis competing brands
Negative Price premium can be good … Target vs. Macy’s
Or what variables influence price
A reasonable summary of brand strength
Two measurements
Dollar metric … How much are you willing to pay
Conjoint analysis … based a series of choices
More sensitive
Seeks a “relative price

19. Brand Loyalty – Customer Satisfaction
Measure on multiple dimensions specific to a product or service
Auto: durability, fit & finish
Financial Services: empathy, responsiveness
Measured as intent to buy
Would you buy this brand at the next opportunity?
Would you recommend to others?

20. Market Behavior Precautions
Market Share
More elements than brand go into market share
Often responsive to short-term strategies
Price/Distribution Indices
Different channels
Complex competitive set

21. Where to From Here
Develop a set of 4-8 constructs from the five dimension
Establish a weighting system to accommodate relative importance
Match the weighing system to perceived values of the target market

22. Communication Effective Research
Direct Rating Method – Participants are directly asked to rate the advertisement
Portfolio Tests – Participants view a variety of ads then they are asked to recall the ads and the contents. .
Laboratory tests – Apparatus to measure the heart rates, blood pressure, perspiration as/after viewing ads to asses physiological reactions to messages

23. Quick & Dirty Ad Metrics
Advertising Objective
Quick & Dirty Metric
Stimulate sales increase
Inquires
Inquires converted into sales
Reinforce Awareness
Test awareness pre/post advertising
Number of enquiries
Inform
Focus group feedback
Requests for further information
Brand Image
Brand recognition and perceived values surveys
Loyalty and relationship
Repeat purchase
Levels of customer retention
Mold/Reinforce Attitudes
Measure changes in customer demographic profile
Compare & contrast goods ordered by new purchasers
Attitudinal surveys

24. 9 Social Media Metrics Metric
Twitter, Facebook, Blogs, Pintrist, Website
Conversation rate
Number of replies or comments to each post
Referring traffic
Monitors traffic sent to the website
Total reach
Total impress -- larger reach = increase the potential spread of your content
Amplification rate
Rate that your followers share your content with their networks (see above media)
Applause rate
Clicking on tweet links, “Liking” Facebook updates, Google++1 an entry, blog posts number of +1s, tweets and likes
Quality of content
Unique page views, time on page, and total pages viewed metrics. Conversion rate, share rate
Sentiment
Positive/Negative ratio; like/dislikes; key word content analysis (manual)
Conversation Share
Number/ratio of you conversations vs. competition
Economic Value
Sales, decreased costs, decreased call center use, increase CSR, improved conflict resolution …….

25. Coverage Mapping

26. Coverage Tone

27. Media Signal
Media signal is an audience and feature weighted impact metric. It combines the estimated circulation/readership of the coverage with how prominently and frequently a company is featured within the coverage.

28. Brand Measurement Chapter One
An Introduction to Integrated Marketing Communications
Brand Measurement
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

29. Precautions Perceived quality involves a competitor frame of reference
Need to compare “apples to apples” … sub-compacts vs. luxury brands
Segmentation issues … perception varies across customers vs. switchers vs. competitive loyalists
It may not be the key driver
It may not be sensitive to relevant events

30. Precautions Awareness is not equally important across categories
Recognition is important for new companies
Recall and top-of-mind important to mature categories/companies
On its own provides an incomplete picture

31. Precautions Defined with respect to only one set of competitors
Might miss an emerging competitor or an emerging variable
Different competitors/variable in different markets … the Budweiser case
Price differentiation is not relevant … legal restrictions, the Japan beer market

32. Precautions They do not apply to non-customers
Do not measure brand equity beyond the customer base
Satisfaction and loyalty become ambiguous when aggregated across customers, brand switchers and other brand loyalists

33. Precautions Not all product categories or brands have personalities
Measurement may distort brand strength of products positioned for functional advantages
Personality may be stable and not reflect change sensitivity

34. Precaution Important in some but not all cases
May suffer from a lack of sensitivity

35. Precautions
Not a simple construction; reflects market size, popularity & innovation
Not as well-researched or documented as other dimensions … loyalty, quality, awareness
Therefore, evidence that it is important enough to merit attention is weak
Aakers, David “Measuring Brand Equity Across Products and Markets”