Chapter 2
Customer-Based Brand Equity and Brand Positioning
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Brand Equity Model
Customer-based Brand Equity Model
This model helps to answer two important questions.
What makes a brand strong?
How do you build a strong brand?
Defining CBBE
CBBE is the differential effect that brand knowledge has on consumer response to the
marketing of that brand.
Three Key
Ingredients
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Dimensions Brand Knowledge
Brand
Recognition
Brand
Awareness
Non-product
Brand Recall related
Brand
Attributes Product
Related
Brand
Knowledge Types of BA
Functional
Strength of
BA Brand
Brand Brand Experiential
Benefits
Image Association (BA)
Favorability
of BA Symbolic
Uniqueness
of BA
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Brand Associations
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Advantages of Brand Awareness
Identifying and Establishing Brand Positioning
Basic concepts
Brand positioning is the “act of designing the company’s offer and image so that it occupies a distinct and
valued place in the target customer’s minds.”
Deciding on a positioning requires determining a frame of reference (by identifying the target market and
the nature of competition) and the optimal points-of-parity and points-of-difference brand associations.
Target Market
-Market
-Market segmentation
Segmentation bases
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Behavioral segmentation bases are often most valuable in understanding branding issues because they
have clearer strategic implications. For example, defining a benefit segment makes it clear what should be
the ideal point-of-difference or desired benefit with which to establish the positioning. Take the toothpaste
market.
1. The Sensory Segment: seeking flavor & product appearance
2. The Sociables: seeking brightness of teeth
3. The Worriers: seeking decay prevention
4. The Independent Segment: seeking low price
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Criteria:
A number of criteria have been offered to guide segmentation and
target market decisions, such as the following:
• Identifiability: Can we easily identify the segment?
• Size: Is there adequate sales potential in the segment?
• Accessibility: Are there specialized distribution outlets and communication media available to reach
the segment?
• Responsiveness: How favorably will the segment respond to a tailored marketing program?
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Nature of Competition
-Indirect Competition
-Direct Competition
Points-of-Difference and Points-of-Parity
Point-of-Difference
-are formally defined as attributes or benefits that consumers strongly
associate with a brand, positively evaluate, and believe that they could not find to the
same extent with a competitive brand.
PODs are generally defined in terms of consumer
benefits. These benefits often have important underlying
“proof points” or reasons to believe (RTBs).
These proof points can come in many forms:
-functional design concerns
-Key attributes
-key ingredients
-key endorsements
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Points-of-Parity
-are not necessarily unique to the brand but may in fact be shared with other brands.
Cleans Teeth Cleans Teeth
Types of POPs
Category points-of-parity
Competitive points-of-parity
Correlational points-of-parity
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Positioning guidelines:
Two key issues in arriving at the optimal competitive brand positioning are
i) Defining and communicating the competitive frame of reference:
Starting point is to determine category membership.
It is more important for a new product.
For highly established products/services category membership is not a focal issue.
Eg: Fedex, Overnight Delivery Services-ONDS
Eg: BMW. Luxury were seen as lack of performance, The Ultimate Driving machine, Luxury
performance car
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Ways to convey category membership:
There are three main ways to convey a brand’s category membership
-Communicating category benefits
-Comparing to Exemplars
-Relying on Product Descriptor
Developing compelling PODs is critical to effective brand positioning
Choosing PODs: Three key Considerations
Desirability
- Desirability criteria
Deliverability
-Deliverability criteria (feasibility & communicability (“proof points” “reasons-to-believe”))
Differentiation
- Differentiation criteria
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ii) Establishing Points-of-Parity and Points-of-Difference
Separate the Attributes
Leverage Equity of Another Entity
Redefine the Relationship
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Straddle Positions is kind of positioning where the brands are looking for position itself in
two attributes simultaneously.
Occasionally, a company will be able to straddle two frames of reference with one set of points of-
difference and points-of-parity. In these cases, the points-of-difference in one category become points-of-
parity in the other and vice-versa for points-of-parity.
Updating Positioning Over time
-Opportunity is Laddering
How to deepen the meaning of the brand to tap into core brand associations or more abstract
considerations.
-Challenge is Reacting
Do nothing
Go on the defensive
Go on the offensive
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Developing a Good Positioning
-Has a “foot in the present” and a “foot in the future”
-Role play competitors positioning
-Reflect consumers’ point of view
-Need to consider brand resonance model
Brand Mantra
- is a short, 3-5 words phrases that captures the irrefutable essence or spirit of the brand positioning.
Designing Brand Mantra
Brand name Emotional modifier Descriptive Modifier Brand function
Nike Authentic Athletic Performance
Disney Fun Family Entertainment
McDonald Fun Family Food
CocaCola Sharing Happiness Tasty
BMW Ultimate Driving Machine
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Implementing a Brand Mantra
-Communicate
-Simplify
-Inspire
Slogan vs Tagline
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Quiz 1
Write the brand name who carries the following slogans or taglines
1. Think different
2. Think Outside the Box 11. Never Settle
3. Just Do It 12. Don’t be Evil
4. Be What’s Next 13. It’s Finger Lickin’ Good
5. Connecting People 14. Life’s good
6. Think Small 15. This is for the Players
7. Take Care 16. [Link]
8. Impossible is Nothing 17. The Best or Nothing
9. Designed for Driving Pleasure 18. The World’s Local Bank
10. The Ultimate Driving Machine 19. I’m Lovin’ it
20. The Best A Man Can Get
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