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Chapter 8: Developing a brand equity measurement and management system
By Cheese Group
1. Pham Ly Yen Nhi
2. Nguyen Le Thi Thuy Duong
3. Pham Phuong Nam
14/04/2020
4 learning objects
Describe the new accountability in terms of ROMI.
Learning objectives
Outline the two steps in conducting a brand audit.
Describe how to design, conduct, and interpret a tracking study.
Identify the steps in implementing a brand equity management system.
The new accountability
Although the marketing concept and the brand is importance, the managers often struggle with these questions:
The new accountability
Return of marketing investment
The profit from a particular activity compared with the amount spent on marketing it in a particular period
This shows how effectively the company is spending money on marketing
Accountability
Accountability
When an individual or department is responsible for performing a specific function
Example: an accountant in the company.
How strong is our brand?
How can we ensure that our marketing activities create value?
Money spent on marketing activities of the company must be justified as both effective and efficient in terms of ROMI.
How do we measure that value?
Beyond ROMI and some other ways, the new accountability is know as a new tools and procedures that clarify and justify the value of their expenditures.
BRAND AUDIT
A brand audit is a comprehensive examination of a brand to discover it’s sources of brand equity.
Conducting brand audits
A brand audit is a more externally, consumer-focused exercise to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity.
The brand audit can set strategic direction for the brand.
Conducting brand audits on a regular basis, such as during the annual planning cycle, allows marketers to keep their fingers on the pulse of their brands.
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
MARKETING AUDIT
It is to make sure marketing operations are efficient and effective
THREE-STEP PROCEDURE
Agreement on objectives, scope, and approach
THREE-STEP PROCEDURE
Data collection
Report preparation and presentation
Purpose: to provide a current, comprehensive profile of how all the products and services sold by a company are marketed and branded
BRAND INVENTORY
The brand inventory is a valuable first step for several reasons
It helps to suggest what consumers’ current perceptions may be based on
It can supply some useful analysis, and initial insights into how brand equity may be better managed
War Room: where all the various marketing activities and programs can be displayed or accessed. Visual and verbal information help to provide a clearer picture
Red Hat "war room"
Software pioneer Red Hat created of all its various ads, brochures, and other marketing materials
The brand exploratory is to provide detailed information about what consumers actually think of the brand by means of the brand exploratory
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
Preliminary Activities
Several preliminary activities are useful for the brand exploratory
First, in many cases, a number of prior research studies may exist and be relevant
Preliminary Activities
Second, Interview internal personnel to gain an understanding of their beliefs about consumer perceptions for the brand and competitive brands
To allow marketers to cover a broad range of issues and to pursue some in greater depth, the brand exploratory often employs qualitative research techniques as a first step
Interpreting Qualitative Research
There are a wide variety of qualitative research techniques. Marketers must carefully consider which ones to employ
Interpreting Qualitative Research
Criteria
Identifies three criteria by which we can classify and judge any qualitative research technique: direction, depth, and diversity
Mental Maps and Core Brand Associations
Mental Maps and Core Brand Associations
Mental Maps
A mental map accurately portrays in detail all salient brand associations and responses for a particular target market
Core Brand Associations
Core Brand Associations
Core brand associations are those abstract associations (attributes and benefits) that characterize the most important aspects or dimensions of a brand
Conducting Quantitative Research
Conducting Quantitative Research
Qualitative research is suggestive, but a more definitive assessment of the depth and breadth of brand awareness and the strength, favorability, and uniqueness of brand associations often requires a quantitative phase of research
Four key considerations in achieving the ideal positioning for a brand (According to John Roberts, one of Australia’s top marketing academics)
What customers currently believe about the brand (and thus find credible)
What customers will value in the brand
Brand Positioning and the Supporting Marketing Program
What the firm is currently saying about the brand
Where the firm would like to take the brand
Designing brand tracking system
What is brand tracking?
Designing brand tracking system
Why brand tracking?
What to track
How to conduct tracking studies
How to interpret tracking studies
What is brand tracking?
Brand tracking is a way to continuously MEASURE the development of a brand within some key variables.
These variables include:
Awareness
Preference
Usage
Attitudes
Perceptions
Judgement
Allow marketers to:
Monitor the health of a brand to allow for proper adjustments.
Provide information to facilitate marketers day-to-day decision making.
Provide insights into the effectiveness of marketing programs implemented by an organization.
Provide insights into the effects of many marketing actions on brand equity.
What to track
Each brand faces different issues, which often requires customized tracking surveys.
But the measurements of awareness, usage, brand attitudes, perceptions and purchase intent should be in the brand tracking survey.
Product-brand tracking
Tracking an individual branded product requires measuring brand awareness and image, using both recall and recognition measures.
Moving from general to more specific questions is good to measure brand image.
”lower-level” brand associations should include all potential sources of brand equity such as performance and imagery attributes and functional and emotional benefits.
Product- Brand tracking
At the same time, marketers will track more general, “higher-level” judgments, feelings, and other outcome-related measures.
Product-brand tracking
Marketers should assess those key brand associations on the basis of strength, favorability, and uniqueness in that order.
If the associations are strong enough for consumers to recall them, their favorability does not matter
If they are favorable enough to influence consumers’ decisions, their uniqueness does not matter
Corporate or Family Brand Tracking
When a brand is identified with multiple products, as in a corporate or family branding strategy, one important issue is which particular products the brand reminds consumers of.
Can be done separately or currently with Product-brand tracking
Additional questions can be included:
Corporate or Family Brand Tracking
Which product of the brand reminds them of the Corporate/Family brand:
on an unaided basis - What come to mind when you think of Nike?
on aided basis for sub-brands – Do you aware of Nike Air Max running shoes?
Consumers can be asked about the relationship between the brand and the products to better understand the relationship. - There are many different products associated with Nike. Which ones are most important to you in formulating your opinion about the brand?
Global tracking
When brand involves diverse geographic markets
Global tracking
Broad set of background measures are needed to put brand development in perspective in those markets
These context-measures may not be collected too often
Whom to track
Different consumer segments
Heavy and light users
- Current customers
Loyals and switchers
- Non users of brand and category – possible new segments
Other stakeholders can be monitored
- Channel members and intermediaries
- Employees (particularly in service organizations)
Different questionnaires are required to capture specific issues associated with each segments
When and where to track – how frequently
When and where to track
Frequency - depends on frequency of purchase, amount of competitive activity, consumer category behavior.
Less frequency needed when:
- Brand is stable and has enduring associations (sound, old brands)
- Mature markets – opinions may not change much
More frequency needed
- New brand entering the market
- In emerging markets - opinions may shift radically.
Continuous - smoothen out aberrations of unusual activities and events (new brand / ad campaign)
-Provides a more representative baseline measure
-Results - on a rolling average basis – monthly / quarterly
Global basis – frequency is decided on the basis of the product or brand life cycle
MILLWARD BROWN
Interviews 50–100 people a week and looks at the data with moving averages trended over time, then it relates specific marketing activity and events to the trend data to understand their impact
The survey data is analyzed in conjunction with a variety of other data sources (traditional and social media, search data, sales data, etc.) to provide guidance on improving marketing ROI
Interviews on average run from 15 to 20 minutes in length (on the Web, the phone—both landline and mobile—and in-person in emerging markets).
How to interpret tracking studies
Given the comparative nature of brand tracking studies, brand tracking measures tend to stay the same over time. However, you should revise from time to time to assess their reliability and sensibility.
Another issue with brand tracking measures is defining what constitutes the desirable level of a particular metric. Is a 50% level awareness good enough? It depends. It is all relative to the product category and the competitive environment.
In low involvement and competitive product categories, it may be difficult to get very high awareness and strong brand associations. Consequently, the benchmark for what it is a good level for a metric differs across industries and product categories.
WHAT IS BRAND EQUITY MANAGEMENT SYSTEM?
Establish a brand equity management system
Defined as :
Brand equity management system is a set of organizational processes designed to to improve the understanding and use of brand equity concept of a firm
Three major steps to help implement a brand equity management system
Creating brand equity charters
Assembling brand equity reports
Defining brand equity responsibilities
"
BRAND CHARTER
The first step in establishing a brand equity management system is to formalize the company view of brand equity into a document. Document should crisply and concisely do the following:
"
Document should crisply and concisely do the following
Define the firm’s view of the brand equity
Suggest how marketers should manage brands
Describe the scope of key brands in terms of associated products
Outline how to devise marketing programs along specific tactical guidelines
Specify what the actual and desired equity is for brands
Explain how brand equity is measured and the resulting brand equity report.
Specify the proper treatment of the brand in terms of trademark usage...
Example:
Brand Equity Report
BRAND EQUITY REPORT
The second step in establishing a successful brand equity management system is to assemble the results of the tracking survey and other relevant performance measures for the brand into a brand equity report
Contents
• The brand equity report should describe what is happening with the brand as well as 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.
• In particular, one section of the report should summarize consumers’ perceptions
Dashboards
As important as the information making up the brand equity report is the way the information is presented. .
Dashboards
A number of firms have implemented marketing dashboards to provide comprehensive
A marketing dashboard functions just like the dashboard of a car.
Brand Equity Responsibilities
BRAND EQUITY RESPONSIBILITIES
To develop a brand equity management system that will maximize long-term brand equity, managers must clearly define organizational responsibilities and processes with respect to the brand
Organizational Design and Structures
Overseeing Brand Equity
Overseeing Brand Equity
One of senior management’s important roles is to determine marketing budgets and decide where and how to allocate company resources within the organization.
The brand equity management system must be able to inform and provide input to decision makers so that they can recognize the short-term and long-term ramifications of their decisions for brand equity.
Organizational Design and Structures
• The firm should organize its marketing function to optimize brand equity.
• Several trends have emerged in organizational design and structure that reflect the growing recognition of the importance of the brand and the challenges of managing brand equity carefully
Many leading manufacturers such as Procter & Gamble are assuming the role of category captain to help retailers manage sections of their stores.
Managing Marketing Partners
The performance of a brand also depends on the actions taken by outside suppliers and marketing partners. Firms must manage these relationships carefully.
Managing Marketing Partners
Increasingly, firms have been consolidating their marketing partnerships and reducing the number of their outside suppliers.
Other marketing partners can also play an important role.