brand measurement. pros and cons of brand measurement measure the wrong things evaluate alternative...
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Brand MeasurementBrand Measurement
Pros and Cons of Brand Measurement
Measure the wrong thingsMeasure the wrong things
Evaluate alternative strategies
Evaluate alternative strategies
Avoid costly mistakesAvoid costly mistakes
Increase efficiency in general
Increase efficiency in general
Disagreement on what to test
Disagreement on what to test
Research problemsResearch problems
Cost of measurementCost of measurement
Determine if objectives are achieved
Determine if objectives are achieved
TimeTime
Advantages Disadvantages
Brand Measurement: Marketers’ Views
Issue Agree
Brand Measurement is a key priority for today’s technology companies.
90%
I am dissatisfied with our ability to demonstrate marketing programs’ business impact and value.
80%
It is important to define, measure, and take concrete steps in the area of advertising accountability.
61.5%
I can forecast the impact on sales of a 10% cut in marketing spending.
37%
Essentials of Brand Measurement
Use a consumer response modelUse a consumer response model
Use benchmark testing
Use benchmark testing
Use multiple measures
Use multiple measures
Understand and implement proper
research
Understand and implement proper
research
Establish communications
objectives
Establish communications
objectives BrandMeasurement
BrandMeasurement
Two Evaluation & Measurement Strategies
• Brand Equity – brand assets (or liabilities) linked to a brand’s name and symbol that add to (or subtract from) a product or services*
• Brand Valuation – Assigning a dollar value to the brand
“Brand Leadership”, Aaker and Joachimsthaler
Brand Equity Dimensions & Constructs
Awareness Perceived Quality
Association/ Differentia-tion
Loyalty Market Behavior
Brand Awareness
Perceived Quality
Perceived Value
Price Premium
Market Share
Leadership Brand Personality
Satisfaction Price Indices
Organizational Associations
DistributionIndices
Aakers, David “Measuring Brand Equity Across Products and Markets”
Brand Equity Assessment Criteria
• Tap the full scope of brand equity• Focus on sustainable advantages not easily
duplicated by competitors• Reflect the constructs that truly drive the market;
are associated with future sales & profits– Movement on a measure will move price levels, sales or
profits
• Measures should be sensitive – when equity changes the measures reflect those changes
• Applicable across brands, product categories & markets– Tested proven measures provide structure for developing a
set of individual brand measures
Brand Awareness
• The level of brand recognition that consumers have of a particular brand and its specific product category
• Reflects the salience of the brand• Awareness levels
– Recognition: Has heard of the brand– Recall: Brands that can be named– Top-of Mind: The first-named brand– Brand Dominance: The only brand recalled– Brand Knowledge: Knowing what the brand
stands for– Brand Opinion: A value judgment of the brand
Precautions
• Awareness is not equally important across categories– Recognition is important for new companies– Recall and top-of-mind important to mature
categories/companies
• On its own provides an incomplete picture
Perceived Quality
• Special associations that occur in many contexts; empirically shown to affect ROI
• Associated with price elasticities and brand usage
• Associated with specific benefit variables • Measured as a scale in comparison to
alternative brands– High vs. average vs. inferior– The best vs. one of the best vs. one of the
worst vs. the worst– Consistent vs. inconsistent quality
“Brand Leadership”, Aaker and Joachimsthaler; Aakers, David “Measuring Brand Equity Across Products and Markets”
Precautions
• Perceived quality involves a competitor frame of reference
• Need to compare “apples to apples” … sub-compacts vs. luxury brands
• Segmentation issues … perception varies across customers vs. switchers vs. competitive loyalists
• It may not be the key driver• It may not be sensitive to relevant events
Perceived Quality - Leadership
• Taps into market dynamics above quality
• Leadership Dimension– The “Number 1” Syndrome – Product Class Innovation
• Measured by scales– The leading brand, one of the
leading brands, not a leading brand– Growing in popularity– Innovative, first with advances
Precautions
• Not a simple construction; reflects market size, popularity & innovation
• Not as well-researched or documented as other dimensions … loyalty, quality, awareness
• Therefore, evidence that it is important enough to merit attention is weak
• Aakers, David “Measuring Brand Equity Across Products and Markets”
Brand Associations - Definition
• Anything that connects individuals to the brand. It can include– User imagery– Product attributes– Organization considerations– Brand personalities – Symbols
“Brand Leadership”, Aaker and Joachimsthaler
Brand Association - Value
• Focuses on the brand value proposition
• Brand value involves – a functional benefit– is usually basic to most brands in its class
• Brand value can be measured by– Provides good value for the money– Whether there are reasons to buy a
brand over competitors
Precaution
• Is brand value different from perceived quality? Perceived quality/price?
• Brand value may relates more to functional benefits and utility
• Perceived quality may have a higher association with prestige
Association – Brand Personality
• Defined as “brand-as-a-person”
• Provides links to emotional and self-expression benefits
• Especially important where there are minor physical differences
• Continuum is often product specific– Retail: Energy/Vitality– Telephone companies:
friendly/reliable– Men’s products: rugged
Precautions
• Not all product categories or brands have personalities
• Measurement may distort brand strength of products positioned for functional advantages
• Personality may be stable and not reflect change sensitivity
Association – Organization Association
• Brand-as-an-organization – NFL, Major League Baseball, PGA
• Important basis for differentiation – product quality, innovation, credibility
• Any of these characteristics are candidates for measurement scales
Precaution
• Important in some but not all cases• May suffer from a lack of sensitivity
Brand Loyalty
• A consumer’s commitment to repurchase the brand
• When consumers like/consistently buy a specific brand
• Creates a barrier to entry
• Brand equity’s core dimension
Measuring Loyalty – Price Premium
• Price Premium – Amount a customer will pay vis-à-vis competing brands
• Negative Price premium can be good … Target vs. Macy’s
• Or what variables influence price • A reasonable summary of brand strength• Two measurements
– Dollar metric … How much are you willing to pay– Conjoint analysis … based a series of choices
• More sensitive• Seeks a “relative price
Precautions
• Defined with respect to only one set of competitors
• Might miss an emerging competitor or an emerging variable
• Different competitors/variable in different markets … the Budweiser case
• Price differentiation is not relevant … legal restrictions, the Japan beer market
Brand Loyalty – Customer Satisfaction
• Measure on multiple dimensions specific to a product or service– Auto: durability, fit & finish– Financial Services: empathy, responsiveness
• Measured as intent to buy– Would you buy this brand at the next
opportunity?– Would you recommend to others?
Precautions
• They do not apply to non-customers• Do not measure brand equity beyond the
customer base• Satisfaction and loyalty become ambiguous
when aggregated across customers, brand switchers and other brand loyalists
Market Behavior Precautions
• Market Share– More elements than brand go into market share– Often responsive to short-term strategies
• Price/Distribution Indices– Different channels– Complex competitive set
Where to From Here
• Develop a set of 4-8 constructs from the five dimension
• Establish a weighting system to accommodate relative importance
• Match the weighing system to perceived values of the target market