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CBBE Model

AL

Ada Leung

Transcript

In Building Brand Equity

Keller's CBBE Model

CBBE Model

Key Concepts of CBBE

  • This model provides different dimensions to build customer-Based Brand Equity.
  • Building a strong brand provides the following benefits (Hoeffler and Keller, 2003):
  • improved perceptions of product performance;
  • Better customer loyalty;
  • less vulnerability to competitive marketing actions and marketing crises;
  • larger margins;
  • more elastic customer response to price decreases and inelastic customer response to price increases;
  • greater trade or intermediary cooperation and support;
  • increased marketing communication effectiveness;
  • additional licensing and brand extension opportunities.

Reference: Hoeffler, S., and K.L. Keller. 2003. The marketing advantages of strong brands. Journal of Brand

Management 10, no. 6: 421–45.

CBBE Model Pyramid

CBBE

Model Pyramid

Reference: Keller, K.L. ‘Building strong brands in a modern marketing communications environment’, Journal of Marketing Communications 15(2/3) 2009, 139–55

How CBBE model helps?

Brand Equity

  • Different perspectives helps marketers design and implement more impactful communication program (e.g. Ways of communication)

  • Increase the chance that the best possible marketing communication tactics are developed; Increase cost-effectiveness

Limitations

  • While applying the CBBE model, it depends on marketer’s understanding on the markets / available market data

  • The execution depends on an effective internal communication (e.g. consistent marketing message throughout the whole corporate)

  • The digital transformation of the market lets consumers take a more active role in building brand equity, which makes the marketing campaigns more difficult to deliver the designed message.

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