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Chapter 8

The document discusses developing a brand equity measurement and management system. It outlines the brand value chain with stages of marketing investment, customer mindset, market performance, and shareholder value. It also discusses designing brand tracking studies, establishing a brand equity management system including a charter and report, and assigning responsibilities for overseeing equity, organizational structure, and marketing partners.

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Ali Ahmii
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© © All Rights Reserved
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Download as PPT, PDF, TXT or read online on Scribd
30 views

Chapter 8

The document discusses developing a brand equity measurement and management system. It outlines the brand value chain with stages of marketing investment, customer mindset, market performance, and shareholder value. It also discusses designing brand tracking studies, establishing a brand equity management system including a charter and report, and assigning responsibilities for overseeing equity, organizational structure, and marketing partners.

Uploaded by

Ali Ahmii
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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CHAPTER 8

DEVELOPING A BRAND
EQUITY MEASUREMENT
& MANAGEMENT SYSTEM
The Brand Value Chain
Value Stages:

1. Marketing Program Investment


2. Customer Mindset
3. Market Performance
4. Shareholder Value
Value Stages

Marketing Program Investment:

The ability of a marketing program


investment to transfer or multiply
further down the chain will depend on
qualitative aspects of the marketing
program via the program multiplier.
Value Stages

The Program Multiplier:


Four factors are important:
1. Clarity
2. Relevance
3. Distinctiveness, and
4. Consistency
Value Stages
Customer Mindset:
Five dimensions have emerged from research as
important measures of the customer mindset:
1. Brand Awareness
2. Brand Associations
3. Brand Attitudes
4. Brand Attachment
5. Brand Activity
Value Stages
Customer Multiplier:

Three essential factors are:

1. Competitive Superiority

2. Channel and other intermediary support

3. Customer size and profile


Value Stages
Market Performance:
Six dimensions need to be addressed:
1. Price Premiums
2. Price Elasticities
3. Market Share
4. Brand Expansion
5. Cost Structure
6. Brand Profitability
Value Stages
Market Multiplier:
Following factors need to be considered:
1. Market Dynamics
2. Growth Potential
3. Risk Profile
4. Brand Contributions
Value Stages

Stakeholder Value:

Based on all available and forecasted information


about a brand and many other considerations,
the financial marketplace then formulates
opinions and makes various assessments that
have direct financial implications for the brand
value.
Value Stages
Three important indicators are:

1. Stock price

2. Price/earnings multiple, and

3. Overall market capitalization of the firm


The Brand Value Chain

Implications:

1. A necessary condition for value creation is a


well-funded, well-designed, and well-
implemented marketing program.

2. Value creation involves more than just the initial


marketing investment.
The Brand Value Chain
 Implications:

3. Each of the three multipliers can increase or


decrease market value from stage to stage.

4. The brand value chain provides a detailed


roadmap for tracking value creation enabling
market research and intelligence efforts.
Designing Brand Tracking Studies

What to Track:
1. Product Brand Tracking
2. Corporate or Family Brand Tracking
3. Global Tracking

How to Conduct Tracking Studies:


1. Who to track
2. When and where to track

How to Interpret Tracking Studies


Designing Brand Tracking Studies
What to Track: Three distinct surveys can be conducted for:

1. Product-Brand Tracking: The six-block pyramid for


brand-building can be used as a basis for design of
the questionnaire.
2. Corporate or Family Brand Tracking: Some
additional questions may be added to establish
levels of corporate credibility and corporate brand
associations.
3. Global Tracking: A broader set of background
measures are needed to put brand development in
those markets in the right perspective .
Designing Brand Tracking Studies

Who to Track:
1. Current Customers
2. Potential Customers
3. Channel Members
4. Frontline Employees (Services sector)
When and Where to Track: Options are:
Continuous Tracking Studies
Based on Stage of Product Life Cycle
Based on depth of Brand Equity
Designing Brand Tracking Studies

How to Interpret Tracking Studies:

For tracking measures to facilitate actionable insights and


recommendations, they must be reliable and sensitive as
possible. This may require framing of questions in a
comparative or temporal manner. It is also necessary to
decide on appropriate cutoffs. For example:
Establishing a Brand Equity
Management System
 Brand Equity Charter

 Brand Equity Report

 Brand Equity Responsibilities:


1. Overseeing Brand Equity
2. Organizational Design and Structure
3. Managing Marketing Partners
Establishing a Brand Equity
Management System
Brand Equity Charter:
A formalized document should spell out the following:
 The firm’s view of the brand equity concept.
 The scope of the key brands of the firm.

 Specify the actual and desired equity for a brand at all


relevant levels i.e. at individual product level and
corporate level.
Establishing a Brand Equity
Management System

 Strategies for managing brand equity.

 Outline specific tactical guidelines for marketing


programs.

 Trademark usage, packaging & communications


Establishing a Brand Equity
Management System
Brand Equity Report:
Important market information that should be included:

1. Product shipments and movement through channels of


distribution.
2. Relevant cost breakdowns
3. Price and discount schedules
4. Sales and market share information
5. Profit assessments
Establishing a Brand Equity
Management System
 Brand Equity Responsibilities:
1. Overseeing Brand Equity: Aspects that are important:
a) Review brand sensitive material
b) Review the status of key brand initiatives
c) Review brand sensitive projects
d) Review new product and distribution strategies with
respect to core brand values
e) Resolve brand positioning conflicts
Establishing a Brand Equity
Management System
Brand Equity Responsibilities:
2. Organizational Structure & Design:
The current market trends are redefining job
requirements and duties. The traditional
marketing department is disappearing from a
number of companies that are exploring other
ways to conduct their marketing functions
through business groups, multidisciplinary teams
and so on.
Establishing a Brand Equity
Management System

 Brand Equity Responsibilities:


3. Managing Marketing Partners:
The performance of a brand also depends on the
actions taken by outside suppliers and marketing
partners. Hence, these relationships must be
managed carefully. Many leading global firms
have been consolidating their marketing
partnerships and reducing the number of outside
suppliers. (Ex: Levi Strauss value chain)

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