DEVELOPING A BRAND EQUITY
MEASUREMENT AND MANAGEMENT
SYSTEM
Bhagabat Barik
Centurion University of Technology
and Management
The New Accountability
Return of marketing investment
(ROMI).
Some observers believe that up to 70%
(or even more) of marketing
expenditures may be devoted to
programs and activities that cannot be
linked to short-term incremental profits,
but yet can be seen as improving brand
equity.
The Brand Value Chain
The brand value chain is a structured
approach to assessing the sources and
outcomes of brand equity and the
manner by which marketing activities
create brand value.
Broader perspective than just the CBBE
model
Brand Value Chain
VALUE
STAGES
Customer
Mindset
Marketing
Program
Investment
Product
Communications
Trade
Employee
Other
MULTIPLIER
Awareness
Associations
Attitudes
Attachment
Activity
Program
quality
Clarity
Relevance
Distinctiveness
Consistency
Market
Performance
Pricepremiums
Priceelasticity
Marketshare
Expansionsuccess
Coststructure
Profitability
Marketplace
Conditions
Shareholder
Value
Stockprice
P/Eratio
Marketcapitalization
Investor
Sentiment
Marketdynamics
Channelsupport
Consumersizeandprofile Growthpotential
Competitivereactions
Riskprofile
Brandcontribution
Value Stages
Marketing program investment
Any
marketing program that can be attributed
to brand value development
Customer mindset
In
what way have customers been changed as
a result of the marketing program?
Market performance
How
do customers respond in the
marketplace?
Shareholder value
Multipliers
Program quality multiplier
The ability of the marketing program to affect customer
mindset
Must be clear, relevant, distinct, and consistent
Customer multiplier
The extent to which value created in the minds of
customers affects market performance
It depends on factors such as competitive superiority,
channel support, and customer size and profile
Market multiplier
The extent to which the value generated through brand
market performance is manifested in shareholder value
It depends on factors such as market dynamics,
growth potential, risk profile, and brand contribution
Brand Equity Measurement
System
A set of research procedures that is
designed to provide timely, accurate, and
actionable information for marketers so that
they can make the best possible tactical
decisions in the short run and strategic
decisions in the long run
Brand Equity Measurement
System
Conducting brand audits
Developing tracking procedures
Designing a brand equity management
system
Designing Brand Tracking
Studies
Tracking studies involve information
collected from consumers on a routine
basis over time
Often
done on a continuous basis
Provide
descriptive and diagnostic information
What to Track
Customize tracking surveys to address the
specific issues faced by the brand
Product-brand tracking
Corporate or family brand tracking
Global tracking
How to Conduct Tracking
Studies
Who to track (target market)
When and where to track (how frequently)
How to interpret brand tracking
Brand Equity Management
System
A brand equity management system is a
set of organizational processes designed
to improve the understanding and use of
the brand equity concept within a firm:
Brand
equity charter
Brand equity report
Brand equity responsibilities
Brand Equity Charter
Provides general guidelines to marketing
managers within the company as well as
key marketing partners outside the
company
Should be updated annually
Brand Equity Charter
Components
Define the firms view of the brand equity
Describe the scope of the key brands
Specify actual and desired equity for the brand
Explain how brand equity is measured
Suggest how brand equity should be measured
Outline how marketing programs should be
devised
Specify the proper treatment for the brand in
terms of trademark usage, packaging, and
communication
The Knicks Brand Charter
The
Knicks
The Fans
Emotional Bond
Uniquely authentic
An incomparable event, scene
and energy
Relentless, resourceful, and
tough
Championship caliber
A vital part of New York City
Unlimited in its possibilities
An intensely passionate,
professional, unparalleled
New York City
experience
Sensory fulfillment
Looks, feels, and sounds
Visceral thrill
Eager anticipation/excitement
War: winning/losing
Psychological benefits
Personal identification (with heroes)
Social currency/belonging
Emotional awards
Intense experience
Childhood
Sustaining
Exceeds
Brand Equity Report
Assembles the results of the tracking
survey and other relevant performance
measures
To be developed monthly, quarterly, or
annually
Provides descriptive information as to
what is happening with the brand as well
as diagnostic information on why it is
happening
Brand Equity Responsibilities
Organizational responsibilities and
processes that aim to maximize long-term
brand equity
Establish position of VP or Director of Equity
Management to oversee implementation of Brand
Equity Charter and Reports
Ensure that, as much as possible, marketing
of the brand is done in a way that reflects
the spirit of the charter and the substance of
the report
Thank You
Fun is Fundamental!
