MKT 510 Chapter Notes - Chapter 2: Brand Equity, Sales Promotion, Critical Role

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14 Nov 2012
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Thursday September 13th, 2012
Chapter 2 :
Customer Based Brand Equity
Customer Based Brand Equity:
-customer based brand equity model (CBBE) incorporates theoretical
advances and managerial practices in understanding and influencing
consumer behavior
-CBBE model provided unique point of view as to what brand equity it
and how it should be built, measured and managed
the model approaches brand equity from the perspective of consumers
(individuals or an organization)
-the basic premise of the model is the power of a brand that lies in
what customers have learned, felt, seen and heard about the brand as
a result of their experience
-challenge for marketers is to build a strong brand, ensure that
customers have the right type of experience with products and service
so that the desired thoughts, feeling, image, beliefs, perception
becomes linked with the brand
-“customer based brand equity” is the effect that brand knowledge has
on consumer response
Brand has “positive” customer based brand equity when
consumers react more favorable to a product and the way it is
marketed when the brand is identified and willing to seek the
brand in a new distribution channel
Brand has “negative” customer based equity when consumers
react less favorably to marketing activity for the brand compared
with an unnamed version of the product
-3 key ingredients to the definition:
Differential Effect: differences in consumer response
Brand Knowledge: result of consumers knowledge about the
brand
Consumer response to marketing: choice of brand, response to a
sales promotion etc
Making a Brand Strong: Brand Knowledge- has two
components: brand awareness and brand image
-brand knowledge is the key to creating brand equity because it
creates differential effect that drives brand equity
-“Brand Awareness” is related to the strength of the brand node or
trace in memory which, we can measure as the consumers ability to
identify the brand under different conditions
-“Brand Image” is consumer’s perception about a brand, reflected by
brand associations held in consumer’s memory
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