Brand Equity and Brand Positioning
Brand Equity and Brand Positioning: Three Tool models are helpful to aid in planning the famous three models Russian nesting matryoshka dolls are interconnected and become larger in scope:
1st Model Brand Positing:
It describes how we can establish competitive advantages in our customer’s mind in the marketplace.
2nd Model Brand Resonance:
It describes how we can take these competitive advantages and how to create an intense active relationship of loyalty for the brand with the customers.
3rd Model Brand Value Chain:
It describes the value creation process can be trace for better understanding of financial impact to create loyal customers and makes the brand strong of marketing investments and expenditures.
The concept of CBBE approaches brand equity in perspective of the consumer. Whether an individual is the consumer or an organization. At the heart of successful marketing by understanding the needs and the wants of any consumer and organizations.
Formally we can define as differential effect customer based brand equity that the knowledge of brand has the response of the consumer for the marketing of the brand. When the consumer is reacting or giving more favor to the product it would be positive customer based brand equity. On the other hand you can say if customer is reacting or giving less attention/ favor to the brand’s marketing activities for the products which are unnamed or factiously named version.
3 key ingredients to the definition:
- Differential effect
- Brand Knowledge
- Consumer response to marketing
What we are meant to customer based brad equity here is the simplest way to illustrate it, it is consider to one of the typical results of the sampling of the product or the comparison tests. For example in blind taste tests there were two groups with two different opinions despite they were consuming the same product. The effects of these brandings also occurs in marketplace too. Here is another example once Hitachi and General Electric jointly a factory owned in England which made identical televisions for the two companies. There was the only one difference in both brands televisions and that was the name of brand on the television. Yet the Hitachi televisions were sold for 75$ over the premium GE televisions. Furthermore Hitachi sold as many sets twice as GE regardless of the higher price.
When different opinions are reported by the consumers about the braded and un branded versions of the products which are identical. Which happens almost invariably it must be in the case of brand knowledge created through any mean for example the users past experience and for brand marketing activity or it can be the word of mouth has changed the perceptions of performance of the product with highly dependent on the impressions of the brand which goes along with it. In other words there are some examples like cloths which may seems to better fit, a car seems may drive more smoothly and shorter wait in the line of bank it all depends on which brand is involved in it.
Brand Equity as a Bridge
As per the concept of customer based brand equity the knowledge of consumer that drives the differences which manifest themselves in term of brand equity. For one thing marketers are provided with a vital strategic bridge from their past to the future.
Sources of Brand Equity
What are the causes for brand equity to exist? How marketers can create it? Customer based brand equity is occurred When the consumer is highly aware and have familiarity with the brands which holds some favorable unique associations with brand in memory.
Brand recognition is consists brand awareness and brand recall performance:
- Its consumer’s ability to recognize the brand to confirm prior exposure for the brand when the cue is given by the brand. In other words when customer go to the store they will be able for recognizing the brand as the one which is already have been exposed by them.
- Brand recall is the ability of consumer to retrieve the brand from the memory when the category of products are given, category also fulfill the needs or the usage of situation as the cue.
Advantages of Brand Awareness
Here are some benefits of creating awareness’s high level of brand.
- Learning Advantages
- Consideration Advantages
- Choice Advantages
The formation and the strength of association influences the brand awareness which makeup the image of the brand. For creation of the brand image the marketer should first establish a node memory of brand in the minds of the customers. The task become easier if the right elements are chosen.
The must be considered by the consumer every time they are making a purchase for which it can be acceptable or satisfy by fulfilling the need.
The 3rd advantage for creating a high level of brand awareness is the one which can affect the choices among the brans in the set of consideration even when there is no other essentially association to those brands.
How someone create brand awareness? Creation of brand awareness increasing the familiarity of brand by repeating exposure. Generally Brand recall is more effective for brand recognition. Which is a consumer’s experience by hearing, seeing, or thinking about it through which the brand is more likely to be registered in the minds of users. Brand awareness on minimum level may be sufficient for the choice of product. Anything which causes consumers to experience is one out of the brand elements. It could be the name, logo packaging or the slogan which can be the cause of increasing familiarity or the awareness about the brand. It is better for the marketers reinforce more elements.
For Example Intel Insides logo and its symbol of distinctive as well as four note jingle which was famous in TV ads for enhancing the awareness.
By increasing the familiarity of any brand through repeated exposure brand awareness can be creating. With the appropriate product category forging strong associations can be the first important step towards building brand equity. Brand awareness is created once a sufficient level, more emphasis on crafting a brand image can be putted by the marketers.
Those descriptive features which can characterize a product or service are brand attributes. The personal value are the brand benefits which means the attachment of the consumer to the product.
Identifying and Establishing Brand Positioning
The CBBE concept in the background with some detail have been developed.
The heart of marketing strategy is brand positioning. The company’s offer and image are act of designing so that the distinct and value place in target customer’s mind can be occupies. Positioning is meant to finding the proper location in the minds of market segment, in mind of customer so that would be able to think about the service or the product in the right way for maximizing the potential benefit of the firm. By clearing what is brand all about good brand positing helps to guide marketing strategy that what is it uniqueness and how it can be similar to its competitive brands and the reasons why any one has to buy it and to become your customer.
A frame of reference is required by the positioning through identification of the target market and the competition’s nature.
Marketers should be known with
- Who is the target consumer?
- Who can be the main competitors?
- How can be the brand is similar to its competitors?
- What makes the brand different from other brands?
Upgrading your brand as per the need of the customer is called laddering
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