Brand Value

Chain
MKT 465: Ch 3 part 2

Brand Value Chain is the Structured approach to

assessing the source and outcome of Brand
Equity and the manner by which marketing
activities create Brand Value.

This model helps to understand

the ROI on investment.
Brand Value Chain is the means to
trace the value creation process
for brands to better understand
financial impacts of brand
marketing investments and
expenditures:

Number
of
linking
factors/
Multipli
er
interven
e
between
these
stages
and
determi
ne the
extent
to which
value
created

Value Stages:
1. Marketing Program
Investment: 8Ps
2. Customer Mind Set:
knowledge and feelings
3. Market Performance:
as a reflection to the
mind set
4. Shareholder Value:
based on the market
performance

1. Marketing Program Investment:

Marketing Mix (8 ps) related strategies that
can contribute to Brand Value development.

Product Development
Communications: tools
RnD
Research
etc

Quality but Quantity (investment amount) of

these Progs play the major role.

Program Quality Multiplier

The ability of the Marketing Progs to affect the Mind set
(stage2) depends on its Quality.
Quality Judgment Criteria: DRIVE

Distinctiveness :

Uniqueness, Creativeness,
Differentiating factors of the progs

Relevance: meaningful/relevant to cus

Integrated: ability to create an impact. Integration
with present n past progs

Value: ST or LT profitability or Equity

Excellence: standard/ state of the art

2: Customer Mind Set: with respect to a brand

Mind Set includes: Thoughts, Feelings, Experiences,
Images, Perceptions, Beliefs and Attitudes.
Marketing Prog can have an affect on these
Measures of Mind Set: 5 As
Brand Awareness: extent and ease to which
customers Recall and Recognize
Brand Association: Strengths, Favorability and
Uniqueness of perceived attributes and benefits:
key source of Brand Value as they are the means
by which customers feel brand satisfy their NWDs
Brand Attitudes: evaluation of the brand in
terms of quality and the satisfaction it generates.
Brand Attachments: loyalty,
attachment/adherence level, high brand
resonance, strong relationship
Brand Activities: frequency of use, spread WOM,

Marketplace Conditions Multipliers:

The extend to which value created in the minds of
customers affects Market Performance depends on 3
factors:

A.Competitive Superiority:

How Effective
are the marketing progs of the Competitors?

B.Channel and Other Intermediary

support: Reinforcement and Selling Efforts by
MI

C.Customer Size and Profile:

Number
and Type of customers attracted to the brand

3. Market Performance: 6 indicators

A. Price Premiums : how much extra the

consumers are willing to pay comparing to

competitions
B. Price Elasticity : demand increase/
decrease due to price fall or rises
C. Market Share: number of customers/ sales
vol
D. Expansion Success: supporting
lines/category expansions
E. Cost Structure: reduced as the mind set
is already done.
F. Profitability: increased profitability due to
the mentioned five

ANOKHI

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4. Shareho
lder Value
Based on a
ll available
current and
forecasted
info, the fin
ancial mar
place form
ket
ulates opin
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assessmen
ts that hav
e very dire
financial im
ct
plications f
or the bran
value.
d
Indicators:
Share P
rice
Price/ E
arning Mu
ltiple
Market
Capitaliza
tion

Implications:
Value creation begins with the marketing prog
investment
: Well Funded, Well Designed and Well Implemented
Marketing Progs are needed.
Value Creation means ensuring that Value Transfers
from one stage to another. Uncontrollable, unfavorable
circumstances might lead to failure