2.

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 “The differential effect that brand knowledge
has on consumer response to the marketing of
that brand.”

Keller

2.2
 Differential effect
◦ Launch of iPhone latest phone?
◦ Launch of Panasonic latest phone?
◦ Launch of RedMi latest phone?
◦ CoolPad latest Phone?

 Brand knowledge

 Consumer response to marketing

◦ Choice of a brand
◦ Recall of copy points from an ad
◦ Response to a sales promotion
◦ Evaluations of a proposed brand extension
2.3
 Reflection of past investments in the
marketing of a brand
◦ Which companies acquire greater market share after
a recession?
 Direction for future marketing actions or
programs
◦ The ‘Israel way’ & the ‘Chinese way’, The ‘German
way’

 The Job of a CEO is to find a future in today’s

activities and contribute to brand building
2.4
 The most important start-up ecosystem in the world

 Smaller than the state of Kerala

 150 Israeli companies are listed in NASDAQ (third largest

next to China and the US)

 There are 300 R&D centers of innovative tech companies like

HP, Microsoft, Google and Facebook present in Israel.

 Jerusalem Venture Partners (JVP) was recently ranked one of

the top-10 consistently performing VC funds worldwide

 Third in the world for US-registered patents

2.5
 CEO between 1981- 2001, World’s largest Electrical and Jet
Aircraft Engine manufacturing company

 Companies value rose by 4000%

 He received a severance payment of $417 million, the largest

such payment in history

 He adopted Motorola's Six Sigma quality program in late

1995

 1999 he was named "Manager of the Century"

by Fortune magazine.

2.6
2.7
2.8
 78 Day air war against Federal Republic of
Yugoslavia (FRY) in 1999
 NATO claimed that the Albanian population in
Kosovo were being persecuted by FRY forces,
Serbian police, and Serb paramilitary forces, and
that military action was needed to force the FRY to
stop.
 After only one night of air strikes, mob of youths
started destroying McDonald’s outlets
 McDonald’s was forced to close down its 15 outlets
 However, McDonald’s kept the burger flipping and
NATO kept bomb dropping
 McDonald’s did an extraordinary comeback just weeks
later
 “McDonald’s is sharing the destiny of all people here”
 ‘McCountry’ – pork burger was introduced with paprika
garnish.
 To evoke Serbian identity and pride, McDonald’s
produced posters showing golden arches topped with
traditional Serbian cap (‘Serbify McDonald’s’)
 Redesigned logo. Donated 3000 free burgers to
participants of ‘Belgrade Marathon’ which was
dominated by anti NATO theme.
 For every burger sold, the company announced to
contribute 1 dinar to Yugoslav Red cross to help victim
of NATO air strikes.
 After the war, ‘Mac is ours’ said Yugoslavakian
 Brand knowledge is the key to creating brand
equity.

 Associative Network Memory Model or Human

Associative Memory (HAM)

 Brand knowledge consists of a brand node in

memory with a variety of associations linked
to it.

 Brand knowledge has two components: brand

awareness and brand image. 2.
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 2.
12
 2.
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 Brand awareness
◦ Brand recognition
◦ Brand recall

 Brand image
◦ Strong, favorable, and unique brand associations

2.
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 Learning advantages
◦ Register the brand in the minds of consumers
 Consideration advantages
◦ Likelihood that the brand will be a member of the
consideration set
 Choice advantages
◦ Affect choices among brands in the consideration
set
 Consumer purchase motivation
 Consumer purchase ability-----extension

2.
15
 Increasing the familiarity of the brand
through repeated exposure (for brand
recognition)
◦ ---Rote based (Mass & Distributed exposure in ads)

 Forging strong associations with the

appropriate product category or other
relevant purchase or consumption cues (for
brand recall)
◦ ---Disinterest to interest pleasure

2.
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 Brand Associations
◦ Does not matter which source of brand association
◦ Need to be favorable, strong, and unique
◦ Marketers should recognize the influence of these
other sources of information by both managing
them as well as possible and by adequately
accounting for them in designing communication
strategies.
◦ Pepsi & Palm Oil issue
◦ Coca cola’s multiple initiatives

2.
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 2.
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 Pepsi's slogan “Live for Now” perfectly reflects
how the company treats the planet – without
the slightest regard for tomorrow.

2.
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 Racial discrimination in USA, 1900 century

 Nigeria’s women automobile mechanic

 MoU with Indian Govt. to invest in agri

ecosystem

2.
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1. Ensure identification of the brand with
customers and an association of the brand
in customers’ minds (Node level)
2. Establish the totality of brand meaning in
the minds of consumers (Group & Network
Level)
3. Elicit the proper customer responses to the
brand identification and brand meaning
4. Convert brand response to create an intense,
active loyalty relationship between
customers and the brand
2.
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1. Who are you? (brand identity)
2. What are you? (brand meaning)
3. What about you? What do I think or feel
about you? (brand responses)
4. What about you and me? What kind of
association and how much of a connection
would I like to have with you? (brand
relationships)

2.
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Customer-Based Brand Equity Pyramid

4. RELATIONSHIPS =
RESONANCE What about you and me?

3. RESPONSE =
JUDGMENTS FEELINGS
What about you?

2. MEANING =
PERFORMANCE IMAGERY What are you?

1. IDENTITY =
SALIENCE
Who are you?
Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES

SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, DURABILITY SITUATIONS
& SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
 Depth of brand awareness
◦ Ease of recognition and recall
◦ Strength and clarity of category membership
◦ ING Direct

 Breadth of brand awareness

◦ Purchase consideration
◦ Consumption consideration
◦ Eg. Arm and Hammer Soda

2.
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 The product category hierarchy shows us not
only the depth of awareness matters but also
the breadth.
 The brand must not only be top-of-mind and

have sufficient “mind share,” but it must also

do so at the right times and places.

2.
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 Primary characteristics and supplementary
features
 Product reliability, durability, and serviceability
 Service effectiveness, efficiency, and empathy
 Style and design
 Price
 Uber

2.
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 User profiles
◦ Demographic and psychographic characteristics
◦ Actual or aspirational
◦ Group perceptions—popularity
 Purchase and usage situations
◦ Type of channel, specific stores, ease of purchase
◦ Time (day, week, month, year, etc.), location, and context of
usage
 Personality and values
◦ Sincerity, excitement, competence, sophistication, and
ruggedness
 History, heritage, and experiences
◦ Nostalgia
◦ Memories
2.
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 Patriotism (Force)
 Buy Bonds (Direction)
 Bank, post office, tele orders (Mechanism)
 Number of centers to purchase (Adequacy

and Compatibility)
 Ease of purchase (Distance)

 Why Indian Ethnocentric brands are not able

to do well?
 Brand quality  Brand consideration
◦ Value ◦ Relevance
◦ Satisfaction
 Brand credibility
 Brand superiority
◦ Expertise ◦ Differentiation
◦ Trustworthiness
◦ Likeability

2.
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In-vehicle security, emergency services,
hands-free calling, turn-by-turn navigation,
and remote diagnostics systems
.

United States, Canada, China, Mexico,

Europe, Brazil, and Argentina
 Warmth
 Fun
 Excitement
 Security
 Social Approval
 Self-respect

2.
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 Behavioral loyalty
◦ Frequency and amount of repeat purchases
 Attitudinal attachment
◦ Love brand (favorite possessions)
◦ Proud of brand
 Sense of community
◦ Kinship
◦ Affiliation
 Active engagement
◦ Seek information
◦ Join club
◦ Visit website, chat rooms
  World Wrestling Entertainment

 Art of Living

 Starbucks

 Google (Search to addiction to Dementia)

 Manchester united and Adidas

 2.
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 NY Times Extension to solve multiple needs

◦ Unwind at the end of the day

◦ To be updated
◦ To be informed
◦ To spend time productively
◦ Television
◦ Metro
◦ Economist

2.
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Customer-Based Brand Equity Model

Consumer- INTENSE, ACTIVE

LOYALTY
Brand
Resonance

RATIONAL &
Consumer Consumer EMOTIONAL
Judgments Feelings REACTIONS

POINTS-OF-
PARITY &
Brand Brand POINTS-OF-
Performance Imagery DIFFERENCE

DEEP, BROAD
Brand Salience BRAND
AWARENESS
 Customers own brands.
 Don’t take shortcuts with brands.
 Brands should have a duality.
 Brands should have richness.
 Brand resonance provides important focus.

2.
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 Customer-brand relationships are the
foundation of brand resonance and building
a strong brand.
 The customer-based brand equity model
certainly puts that notion front and center.

2.
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 Uses a company’s data systems and
applications to track consumer activity and
manage customer interactions with the
company
 Blattberg and Deighton (1996) offer eight guidelines as
a means of maximizing customer equity:

◦ Invest in highest-value customers first

◦ Transform product management into customer management
◦ Consider how add-on sales and cross-selling can increase
customer equity
◦ Look for ways to reduce acquisition costs
◦ Track customer equity gains and losses against marketing
programs
◦ Relate branding to customer equity
◦ Monitor the intrinsic retainability of your customer
◦ Consider writing separate marketing plans—or even building two
marketing organizations—for acquisition and retention efforts

2.
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 The sum of lifetime values of all customers
 Customer lifetime value (CLV) is affected by
revenue and by the cost of customer
acquisition, retention, and cross-selling
 Consists of three components:
◦ Value equity (Offer, price and convenience)
◦ Brand equity (Governs premium pricing)
◦ Relationship equity (Harley Davidson)

Rust, Zeithamal & Lemon, 2004

2.
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 Customers drive the success of brands but
brands are the necessary touchpoint that
firms have to connect with their customers.
 Customer-based brand equity maintains that
brands create value by eliciting differential
customer response to marketing activities.
 The higher price premiums and increased
levels of loyalty engendered by brands
generate incremental cash flows.

2.
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