Brand Management

Module-5 & 6
IMT Hyderabad

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What separates a generic local soft drink
from Coca-Cola and Pepsi.

It’s the value that a brand adds to

comparable products.

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We will discuss
Define brand resonance
Describe the steps in building brand resonance
Define the brand value chain
Identify the stages in the brand value chain
Brand equity and customer equity
Brand Resonance Pyramid
Subdimensions of Brand Building Blocks
Brand Salience
• Achieving the right brand identity means creating brand
salience with customers
• Brand salience:
• Measures various aspects of the awareness of the brand
• How easily and often the brand is evoked under various
situations or circumstances – Top-of-Mind; Recall

• Breadth and depth of awareness:

• Gives a product an identity by linking brand elements to:
• The product category
• The associated purchase
• The consumption or usage situations
Brand Salience
• Product category structure:
• How product categories are
organized in memory
• Marketers assume that products
are grouped

• Depth of brand awareness – brand

comes to mind
• Breadth of brand awareness – different
types situations where brand might
come to mind
Brand Performance
• Describes how well the product or service:
• Meets customers’ more functional needs
• Rate on objective assessments of quality
• Satisfies utilitarian, aesthetic, and economic
customer needs and wants in the product or
service category

• Attributes and benefits often underlie brand

performance:
• Primary ingredients and supplementary
features
• Product liability, durability, and serviceability
• Service effectiveness, efficiency, and empathy
• Style and design
• Price
Brand Imagery
• A main type of brand meaning is brand
imagery
• Brand imagery depends on the extrinsic
properties of a product or service
• It’s the way people think about the brand
abstractly; rather than think what the
brand actually does
• Many kinds of intangibles can be linked to
a brand; the four main ones are:
• User profiles
• Purchase and usage situations
• Personality and values
• History, heritage, and user experiences
Brand Imagery
• User imagery:
• One set of brand imagery associations is
about the type of person or organization who
uses the brand
• Demographic factors include:
• Gender
• Age
• Race
• Income
• Purchase and usage imagery:
• Associations that tells consumers under what
conditions or situations they can or should
buy and use a brand
Brand Imagery
• Brand personality and values:
• Through consumer experience or marketing activities,
brands may take on personality traits or human values:
• A person
• Appear to be modern or old-fashioned, for
example
• Five dimensions of brand personality:
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness
• When user & usage imagery are important to
consumer decisions, brand personality & imagery are
more likely to be related – cars, beverages, cosmetics
Brand Judgments
• Customers’ personal opinions about and evaluations of a brand:
• Consumers form judgments by putting together all the different brand
performance and imagery associations
• Brand Quality
• Brand Credibility
• Brand Considerations
• Brand Superiority
Brand Feelings
• Customers’ emotional responses and reactions to a brand
• Brand feelings relate to the social currency evoked by the brand
• Feelings can be:
• Experiential and immediate, increasing in level of intensity
• Private and enduring, increasing in level of gravity
• Six important types of brand-building feelings:
1. Warmth
2. Fun
3. Excitement
4. Security
5. Social approval
6. Self-respect
Brand Resonance
• Ultimate relationship and level of identification that a customer has
with a brand:
• Describes the nature of the relationship
• Extent to which customers feel in sync with the brand
• Characterized in terms of intensity:
• Depth of the psychological bond that customers have with a
brand
• Four categories of brand resonance:
• Behavioral loyalty
• Attitudinal attachment
• Sense of community
• Active engagement
Brand Resonance
• Behavioral loyalty:
• Repeat purchases and the amount or share of category
volume attributed to the brand:
• Share of category requirements
• Attitudinal attachment:
• Resonance requires a strong personal attachment
• Going beyond having a positive attitude:
• Viewing the brand as something special
Brand Resonance
• Sense of community:
• Brand may take on a broader meaning by conveying a sense of community
• Social phenomenon in which customers feel a kinship or affiliation with others
associated with the brand
• Active engagement:
• Perhaps the strongest affirmation of brand loyalty
• Willing to invest time, energy, money, or other resources beyond those expended
during purchase or consumption
Brand-Building Implications
• Marketers can assess their brand’s
progress in their brand-building efforts
through the brand resonance model:
• Customers own the brand
• Don’t take shortcuts with brands
• Brands should have richness
• Brand resonance provides important
focus
• Customer networks strengthen brand
resonance
The Brand Value Chain
• Structured approach to:
• Assessing the sources and outcomes of brand equity and the manner by which
marketing activities create brand value
Brand Value Chain
The Brand Value Stages
• The brand value chain has numerous implications:
• Value creation begins with the marketing program investment
• Value creation requires more than an initial marketing investment
• Band value chain provides a detailed road map for tracking value creation
3. Brand Value Chain Model

2. Brand Resonance Model

Brand Planning Models

1. Brand Positioning Model

Point of Point of
Parity Difference
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Brand Equity &
Customer Equity

Marketing Activity Brand Equity Customer Equity

What is it? Commercial value that derives from The sum of discounted stream of cash flows
consumer perception of the brand name generated from a company’s pool of customers
Unit of analysis Product Customer
Level of analysis Attitudinal: ‘the mind’ Behavioural: observed customer
Product & service Create strong customer preference Create high customer retention rates
quality
Advertising Create brand image & position Create customer affinity
Promotions Deplete brand equality Create repeat buying & enhanced lifetime value
Segmentation Customer characteristics & benefit Behavioural segmentation based on customer
segmentation database
Customer service Enhance brand image Create customer affinity
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How to maximise Customer Equity

• Invest in highest value customer first

• Transform product management into customer management
• Consider how add on sales & cross selling can increase customer equity
• Reduce acquisition costs
• Track customer equity gains & losses against marketing programs
• Relate branding to customer equity
• Monitor the intrinsic retainability of your customer
• Look at writing separate marketing plan or separate marketing organisations for
acquisition & retention efforts

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CITROEN Case
Dimensions of CITROEN’s brand image
• Being Indian in India
• 90% local parts
• Inputs from Indian customers
• Expertise from TCS
• Mainstream to Premium – neither cheapest nor most expensive
• Value for money – strong value proposition
• Better design styling
• Comfort
• Space
• 50+ customizable features
• Disruptive & modern – ‘inspired by you’
• Unmatched customer experience
• Dealer & service
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CITROEN Case
Brand Resonance model w.r.t. CITROEN in India
• Salience
• Strong strategy on paper, but effectiveness??
• Need to strengthen brand salience & spread desired brand awareness among TG
• Brand Performance
• Advanced style, comfort, technology
• C3-spacious, roomy, superior chassis & suspension, 26” screen, 50+ customizable options
• C-Cubed concept
• Strong supplier base, R&D capability, local assembly & engine manufacturing, 90% local
parts
• Dealers in 19 cities, 100% online buying (90 cities)
• Thus very strong parameters to enhance brand performance
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CITROEN Case
Brand Resonance model w.r.t. CITROEN in India
• Imagery
• Being Indian in India
• C3 TG – young & progressive Indians
• Highly distinct product in the mind of Indian consumers
• C-Cubed – Cool, Comfort, Clever
• Co-created with consumers over a 5 year period
• Strong aspects for building Brand Imagery

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CITROEN Case
Brand Resonance model w.r.t. CITROEN in India
• Had much to convey
• But could not do so & elicit response from target segment
• Far from reaching the next 2 levels – Brand Judgement & Brand
Feelings
• Brand Resonance – a distant dream

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CITROEN Case
Brand Resonance model w.r.t. CITROEN in India
• Strategies for improvement of Brand Image among target segment
• Weak brand salience – efforts to develop brand recall & recognition
• Clarity on focus segment required – currently premium>>mainstream
• Has strong reasons to convey ‘performance’ and ‘imagery’, but limited reach of
dealer/service network
• Needs to speed up channel expansion & have aggressive aftermarket strategies
• Build trust
• Pricing – make the customer understand & appreciate the brand’s value
• Target segment – young & progressive Indians.
• Digital initiatives
• Personal relevance & consistency; brand’s benefits to be seen as ‘personal benefits’
• Create unique & exciting consumer experiences – maximise brand resonance
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