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Bradley Kingston
Vassili Zachariou
How to market yourself
Utilize public relations resources
Advertise – remind and persuade
Result = Brand Equity
Outline of Presentation
REVIEW
CONTEXT
MEASUREMENT APPROACHES – 2 main ways to measure the benefits or outcomes of brand equity
Comparative methods
Conjoint analysis
Holistic methods
Residual approach
Valuation approach
QUESTIONS
Review
Brand Equity (BE):
Branding and Finance 10.0 (pg 428) – Accounting Perspectives on Brands (Roger Sinclair)
• They must describe the premium price paid over net asset
value (Assets – Liabilities).
•Example: &
Comparative Methods - BBCA
Applications
• Product purchase or consumption research for new or existing
products
• Only if – brand identification can be hidden.
• 2008: the60secondmarketer.com
Andy Goldsmith, Vice President, Creative and Brand Strategy,
American Cancer Society
• Brain scans showed that the ventrolateral prefrontal cortex lights up when either brand was
consumed. Since that part of the brain responds to rewards, and people were being asked to drink
sugar water, no surprise.
• But when researchers then told people which cola they were drinking, interesting results.
• In those “branded” taste tests, while still hooked up to the fMRI, Coke was preferred by
75% 25%
• Understanding exactly how knowledge of the brand affects consumer responses to prices,
advertising and so for this extremely useful in developing strategies in these different areas.
Concern
• Simulations and concept statements may highlight the particular product characteristics
enough to make them more salient than they would otherwise be, distorting results.
Comparative Methods
Marketing-based comparative approaches:
Experiments in which consumers respond to changes in elements of the
marketing program for the brand or competitive brands.
Applications
• Researching price premium and increase strategy to reveal brand-switching
and loyalty patterns.
• Assess price sensitivity and thresholds for different brands - example Intel
Comparative Methods - MBCA
Applications (cont.)
• Assessing consumer response to different advertising
strategies, executions, or media plans through multiple
test markets.
Example:
Kulula.com brand extensions
Comparative Methods - MBCA
Advantages
• Ease of implementation.
• Compare virtually any proposed set of marketing actions for the brand.
Drawbacks
• Difficult to tell whether consumer responses to changes in marketing stimuli are
caused by brand knowledge or by more generic product knowledge.
• I.e. it may be that for any brand in the product category, consumers are willing to pay
certain prices, accept a particular brand extension, etc.
• Suggested solution:
Determine whether the response is specific to the brand by:
Conducting similar tests of consumer response with competitive brands.
Comparative Methods
Conjoint analysis:
A survey-based multivariate technique that enables marketers to profile
the consumer buying decision process with respect to products and
brands.
Disadvantage
• Marketing profiles may violate consumer’s expectations based on what they
already know about brands.
• Grand Metropolitan
1.Cost approach
2.Market approach
3.Income approach
The Cost Approach
• The cost approach maintains that brand equity is the
amount of money that would be required to reproduce or
replace the brand which include all costs for research
and development, test marketing, advertising and so on.
1.Market segmentation
2.Financial analysis (role of branding)
3.Demand analysis (brand strength)
4.Competitive benchmarking
5.Brand value calculation
Summary
Comparative methods:
Use experiments that examine consumer attitudes and behaviour toward a brand, to more
directly assess the benefits arising from having a high level of
awareness and strong, favourable, and unique brand associations.
Brand-based comparative approaches: Experiments in which one group of consumers
responds to an element of the marketing program when it is attributed to the brand and another
group responds to that same element when it is attributed to a competitive or fictitiously named
brand.
Conjoint analysis: A survey-based multivariate technique that enables marketers to profile the
consumer buying decision process with respect to products and brands.
Holistic methods:
Attempt to place an overall value on the brand in either abstract utility terms or concrete
financial terms. Thus, holistic methods attempt to "net out" various
considerations to determine the unique contribution of the brand.
Residual approach: Examines the value of the brand by subtracting out from overall brand
preferences consumers' preferences for the brand based on physical product attributes alone.
Valuation approach: Places a financial value on the brand for accounting purposes, mergers
and acquisitions, or other such reasons.
Conclusion
NO single measure that fully captures BRAND EQUITY.