Brand Resonance and Brand Value Chain Chapter 3

Brand Resonance Pyramid 4. RELATIONSHIPS = RESONANCE What about you and me? 3. RESPONSE = JUDGMENTS FEELINGS What about you? 2. MEANING = PERFORMANCE IMAGERY SALIENCE What are you? 1. IDENTITY = Who are you?

Sub-Dimensions of CBBE Pyramid LOYALTY ATTACHMENT COMMUNITY ENGAGEMENT QUALITY CREDIBILITY CONSIDERATION SUPERIORITY PRIMARY CHARACTERISTICS & SECONDARY FEATURES PRODUCT RELIABILITY, DURABILITY & SERVICEABILITY SERVICE EFFECTIVENESS, EFFICIENCY & EMPATHY STYLE AND DESIGN PRICE WARMTH FUN EXCITEMENT SECURITY SOCIAL APPROVAL SELF-RESPECT USER PROFILES PURCHASE & USAGE SITUATIONS PERSONALITY & VALUES HISTORY, HERITAGE & EXPERIENCES CATEGORY IDENTIFICATION NEEDS SATISFIED

Resonance • Intense Active Loyalty • Apple Lifestyle & Communities • Apple Collectors/ Aficionados Judgments • High Quality (Precision & Engineering) • Innovation • Cutting Edge Technology • Quality at the premium price • Product Centric Feelings • Social Status • Customer Satisfaction • Feeling Proud, Comfortable, Satisfied Performance • Greater Support for Multi Tasking • Smooth User Experience • User Friendly • Speed Performance • Unique Operating System • High Price • Serviceability • Long Lasting Imagery • Human Silhouette • White • Exclusivity • Shell Shape • Translucent Pearl White • Steve Jobs Salience APPLE – THINK DIFFERENT Ipod, Macbook, Ipad, I Tunes

Brand Building Blocks • Brand Salience • Breadth & Depth of awareness • Product Category Structure • Historically, brand salience has been considered synonymous with the brand being ‘top of mind’ (mentioned first) when the product category is used to cue retrieval from memory. Brand salience reflects the quantity and quality of the network of memory structures buyers’ hold about the brands.

Brand Salience • The tendency of a brand to be thought of in a buying situation is known as “brand salience”. Brand salience is “the propensity for a brand to be noticed and/or thought of in buying situations” and the higher the brand salience the higher it’s market penetration and therefore its market share. • Salience refers not to what customers think about brands but to which ones they think about.

Brand Performance Dimensions • Primary characteristics and supplementary features • Product reliability, durability, and serviceability • Service effectiveness, efficiency, and empathy • Style and design • Price

Imagery Dimensions • User profiles • • Demographic and psychographic characteristics: Group perceptions—popularity: Ipod: If you don’t have one, you’re a loser 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

Purchase and usage situations

Nostalgia/Memories

Examples Brand Personality n Sincerity n Excitement n Competence n Sophistication n Ruggedness

Judgment Dimensions • Brand quality • • Value Satisfaction • Brand credibility • • • Expertise Trustworthiness Likeability • Brand consideration • Relevance • Brand superiority • Differentiation

• Warmth • Fun • Excitement • Security • Social Approval • Self-respect Feelings Dimensions

Resonance Dimensions • Behavioral loyalty • Frequency and amount of repeat purchases • Attitudinal attachment • • Love brand (favorite possessions; “a little pleasure”) Proud of brand • Sense of community • • Kinship Affiliation • Active engagement • • • Seek information Join club 2. 23 Visit website, chat rooms

The Brand Value Chain

Value stages • Marketing Program Investment • • Any marketing investment that can contribute to the value of the brand. Its success is enhances by the multipliers • • Clarity: How understandable is the program Relevance: How meaningful is the program Distinctiveness: How unique is the program Consistency: How cohesive or integrated is the program

Customer Mind-set Awareness: The extent to which customers recall and recognize the brand. Associations: Strength, favourability and uniqueness of perceived attributes of the brand Attitudes: Overall evaluations of the brand Attachments: Degree of loyalty customers feel towards a brand Adherence Addiction Activity: Extent to which customers use the brand, talk about it, seek out information, promotions and so on

Customer Mind-Set §Awareness §Associations (Image) §Attitude (Intention; Acceptability) §Attachment (Loyalty; Addiction) §Activity (WOM) 28

Marketplace conditions multiplier • Competitive superiority: how effective are the marketing investments of competiting brands • Channel and other intermediary support: how much brand reinforcement and selling effort is being put forth by the marketing partners • Customer size and profile: what types of customers are attracted to the brand

Market Performance Price Premiums and Elasticity How much extra are consumers willing to spend on the product because of the brand? Effect of price on demand Market share Whether marketing programs are increasing sales Brand Expansion Brand extensions become easier Adds enhancements to revenue systems Cost Structure Reduced Marketing Expenditure? ? All efforts are likely to be more effective Same effectiveness can be achieved at lower cost Brand Profitability

Investor sentiment multiplier • • Market Dynamics • Interest rates, supply of capital Growth Potential • • • Prospects of brand Prospects of industry PEST Risk Profile • How vulnerable is the brand Brand Contribution • How important is the brand to the firm’s portfolio