Part 4:
Measuring and Interpreting Brand Performance
Developing a brand equity measurement and management system
Conducting brand audits
Establishing a brand equity management system
Comprehensive models of consumer-based brand equity
Book chapter 9
Developing a brand equity measurement and management system
2.2
Brand Equity Measurement System
A brand equity measurement system is a set of research
procedures designed to provide marketers with timely,
accurate, and actionable information about brands so
they can make the best possible tactical decisions in the
short run and strategic decisions in the long run.
Conducting Brand Audits
A brand audit is a comprehensive examination of a brand to
discover its sources of brand equity.
An accounting audit is a systematic inspection by an outside
firm of accounting records including analyses, tests, and
confirmations.
A marketing audit is a “comprehensive, systematic,
independent, and periodic examination of a company’s—or
business unit’s—marketing environment, objectives,
strategies, and activities with a view of determining problem
areas and opportunities and recommending a plan of action to
improve the company’s marketing performance.”
Conducting Brand Audits
The brand audit consists of two steps:
the brand inventory and
the brand exploratory.
Conducting Brand Audits
Brand Inventory
The purpose of the brand inventory is to provide a current,
comprehensive profile of how all the products and services sold by a
company are marketed and branded.
Profiling each product or service requires marketers to
catalogue the following in both visual and written form for
each product or service sold:
the names, logos, symbols, characters, packaging, slogans, or other
trademarks used; the inherent product attributes or characteristics of the
brand; the pricing, communications, and distribution policies; and any
other relevant marketing activity related to the brand.
The outcome of the brand inventory should be an accurate,
comprehensive, and up-to-date profile of how all the products and
services are branded in terms of which brand elements are employed
and how, and the nature of the supporting marketing program.
Conducting Brand Audits
Brand Exploratory
The brand exploratory is research directed to understanding what
consumers think and feel about the brand and act toward it in
order to better understand sources of brand equity as well as any
possible barriers.
Several preliminary activities are useful for the brand exploratory.
Review the prior research report
Interview internal personnel
Beside these a number of Qualitative research Techniques are useful:
Conducting Brand Audits
Brand Exploratory: Mental Maps and Core Brand Associations.
One useful outcome of qualitative research is a mental
map.
A mental map accurately portrays in detail all salient brand
associations and responses for a particular target market.
One of the simplest means to get consumers to create a mental map
is to ask them for their top-of-mind brand associations (“When you
think of this brand, what comes to mind?”)
Conducting Brand Audits
Mental Maps: Mtv
Establishing A Brand Equity
Management System
A brand equity management system is a set of
organizational processes designed to improve the
understanding and use of the brand equity concept within a
firm.
Three major steps help to implement a brand equity
management system:
creating brand charters,
Assembling brand equity reports, and
defining brand equity responsibilities.
Brand Charters
The brand charter is a document that provides relevant guidelines to
marketing managers within the company as well as to key
marketing partners outside the company such as marketing research
suppliers or ad agency staff.
Brand Charters
This document should crisply and concisely do the following:
• Define the firm’s view of the brand equity
• Describe the scope of the key brands
• Specify actual and desired equity for the brand
• Explain how brand equity is measured
• Suggest how brand equity should be measured
• Outline how marketing programs should be devised
• Specify the proper treatment for the brand in terms of
trademark usage, packaging, and communication
Brand Equity Report
A brand equity report or scorecard entails the result of the different
performance measure for the brand as tracking survey.
This report is distributed to management on a regular basis - weekly,
monthly, quarterly, or annually.
Contents of ‘Brand Equity Report’
The brand equity report should describe
• what is happening with the brand, and
• why it is happening.
It should include all relevant
• internal measures of operational efficiency and effectiveness
and
• external measures of brand performance and sources and
outcomes of brand equity.
Brand Equity Report
Contents of ‘Brand Equity Report’
In particular, one section of the report should summarize
consumers’ perceptions of key attribute or benefit associations,
preferences, and reported behavior as revealed by the tracking study.
Another section of the report should include more descriptive
market-level information such as the following:
• Product shipments and movement through channels of distribution
• Retail category trends
• Relevant cost breakdowns
• Price and discount schedules where appropriate
• Sales and market share information broken down by relevant factors
(such as geographic region, type of retail account, or customer)
• Profit assessments
Brand Equity Responsibilities
To maximize long-term brand equity, managers must clearly
define organizational responsibilities and processes with
respect to the brand.
• Organizational Design and Structures
• Managing Marketing Partners
Brand Equity Responsibilities
Organizational responsibilities and processes
that aim to maximize long-term brand equity
Establish position of Director of Equity Management
to oversee implementation of Brand Equity Charter and
Reports
Ensure that, as much as possible, marketing of
the brand is done in a way that reflects the spirit
of the charter and the substance of the report
8.16
COMPREHENSIVE MODELS OF CONSUMER-BASED BRAND EQUITY
BrandDynamics
COMPREHENSIVE MODELS OF CONSUMER-BASED BRAND EQUITY
BrandDynamics
The BrandDynamics model of Millward Brown
adopts a hierarchical approach to determine the
strength of relationship a consumer has with a
brand.
The five levels of the model, in ascending order
of an increasingly intense relationship, are
• presence,
• relevance,
• performance,
• advantage, and
• bonding.
COMPREHENSIVE MODELS OF CONSUMER-BASED BRAND EQUITY
BrandDynamics/The Brand Pyramid
Fig: BrandDynamics from Millward Brown
COMPREHENSIVE MODELS OF CONSUMER-BASED BRAND EQUITY
BrandDynamics
Consumers are placed into one of the five levels depending
on their brand responses.
By comparing the pattern across brands, we can uncover
relative strengths and weaknesses and see where brands can
focus their efforts to improve their loyalty relationships.
COMPREHENSIVE MODELS OF CONSUMER-BASED BRAND EQUITY
BrandDynamics
Level 1: Presence
At this level, customers are aware of your brand, but little
else. They may have tried your products and services before,
but they have little or no emotional attachment to them.
Level 2: Relevance
At this level, customers start to think about whether the
brand meets their wants and needs. It's here that they begin
comparing the cost of your products with respect to the
value these provide.
Customers begin asking questions like:
"Does this brand fit my needs?"
"Is it in the right price bracket for me?"
"Is it worth it?”
COMPREHENSIVE MODELS OF CONSUMER-BASED BRAND EQUITY
BrandDynamics
Level 3: Performance
Here, customers begin comparing the brand with others, to
see whether it delivers on its potential.
They're also starting to associate the brand with a specific
identity, and they're beginning to recognize it and associate
with it.
By now, the brand is on the customer's "short list" of brands
to choose from.
Level 4: Advantage
At this level, customers have determined that there is a
distinct advantage to using the brand, compared with others.
They're also beginning to associate the brand with their
emotions and with their sense of self.
COMPREHENSIVE MODELS OF CONSUMER-BASED BRAND EQUITY
BrandDynamics
Level 5: Bonding
Here, customers have established a bond with the brand.
They've determined that cost, advantage, and performance
are all at levels that they're happy with.
They've also formed a strong emotional attachment to the
brand; the brand has become an integral part of their self-
image, and helps represent who they are. This, in turn,
encourages them to exclude other brands in favor of this
one.
Customers at this level are also likely to be vocal advocates
of the brand, which helps build further awareness within
their family, social, and professional circles.
COMPREHENSIVE MODELS OF CONSUMER-BASED BRAND EQUITY
