The presentation elaborates CBBE model

1. Customer-Based Brand Equity Model
Soroush Mosavati
V 1,2 - Jan, 2015

2. A brand comes to embody a promise about the
goods it identifies, a promise about quality,
performance, or other dimensions of value, which
can influence consumers' choices among competing
products.

3. Brand can convey six level of meaning (Kotler):
 Attribute: durable, prestigious, well engineered, and expensive
 Benefits: functional, emotional and self expressive
 Values: high performance, safety
 Culture: German culture, organized, efficient, high quality
 Personality: austere, aggressive, no-nonsense person

4. Quality of experience
 Experience economy is a new kind of emerging economy in which increasing
numbers of industrial practitioners find out the importance of capitalizing on
the customer experience (Xu & Chan, 2010).
 Competitive environment delivers quality of experience rather than quality of
service (Klaus & Maklan, 2007).

5. There is a relationship between quality of experience
and overall brand equity.

6. Brand Equity
 Brand equity refers to the marketing effects or outcomes that accrue to a
product with its brand name. Consumers believe that a product with a well-
known name is better than products with less well known names.
The value of brand equity is the “expected future revenue”.

7. Benefits of Brand Equity:
 Enabling buying decisions
 Builds Customer Loyalty
 Builds Market Share
 Protect Market Share
 Helps Command Higher Price
 Create a Halo Effect
 Assists Product, Service and Business Expansion

8. Brand experience is also lead to
positive brand equity
 Brand awareness: Consumers are aware of the brand.
 Brand recognition: Consumers recognize the brand and know what it
offers versus competitors.
 Brand trial: Consumers have tried the brand.
 Brand preference: Consumers like the brand and become repeat
purchasers. They begin to develop emotional connections to the brand.
 Brand loyalty: Consumers demand the brand and will travel distances
to find it. As loyalty increases so do emotional connections until there is
no adequate substitute for the brand in the consumer’s mind.
 Brand Maintenance: Sustain that loyalty and positive brand equity for
years to come.

9. building brand equity with keller’s
Customer-Based Brand Equity model
Keller’s CBBE model is marketing focus
The basic premise of the CBBE concept is that the power of a brand lies in what
customers have learned, felt, seen, and heard about the brand as a result of their
experiences over time.

10. Strategic Brand Management
SBM involves the design and implementation of marketing programs and
activities to build, measure, and manage brand equity.
Strategic brand management process has four main steps:
1- Identifying and developing brand plans
2- Designing and implementing brand marketing program
3- Measuring and interpreting brand performance
4- Growing and sustaining brand equity

11. Identifying and developing brand plans
It clears understanding of what the brand is to represent and how it should be
positioned with respect to competitors.
 Brand Positioning Model: Describes how to guide integrated marketing to
maximize competitive advantages.
 Brand Resonance Model: Describes how to create intense, activity loyalty
relationships with customers.
 Brand Value Chain: Means to trace the value creation process for brands,
to better understand the financial impact of brand marketing expenditures and
investments.

12. Brand Positioning delivers:
 Mental maps
 Competitive frame of reference
 Points-of-parity and points-of difference
 Core brand associations
 Brand mantra
Positioning requires defining our desired or ideal brand knowledge
structures and establishing points-of-parity and points-of-difference to establish
the right brand identity and brand image.
Positioning Model answers to these questions:
• Who the target consumer is?
• Who the main competitors are?
• How the brand is similar to these competitors?
• How the brand is different from them?

13. Brand Resonance
 Ensure identification of the brand with customers and an association of the
brand in customers’ minds with a specific product class, product benefit, or
customer need.
 Firmly establish the totality of brand meaning in the minds of customers by
strategically linking a host of tangible and intangible brand associations.
 Elicit the proper customer responses to the brand.
 Convert brand responses to create brand resonance and an intense, active
loyalty relationship between customers and the brand.

14.  Those four steps represent a set of fundamental questions that
customers invariably ask about brands—at least implicitly. The four
questions (with corresponding brand steps in parentheses) are:
 Who are you? (brand identity)
 What are you? (brand meaning)
 What about you? What do I think or feel about you? (brand responses)
 What about you and me? What kind of association and how much of a
connection would I like to have with you? (brand relationships)

16. The Brand Value Chain
 Stage 1: The brand value creation process begins when the firm invests in a
marketing program targeting actual or potential customers.
 Stage 2: The associated marketing activity then affects the customer mind-
set—what customers know and feel about the brand—as reflected by the
brand resonance model
 Stage 3: This mind-set, across a broad group of customers, produces the
brand’s performance in the marketplace—how much and when customers
purchase, the price that they pay, and so forth
 Stage 4: Finally, the investment community considers this market to arrive at
an assessment of shareholder value in general and a value of the brand in
particular

17. Brand Value Chain

18. Brand elements:
 sometimes called brand identities, are those trademarkable devices that serve to
identify and differentiate the brand. The main ones are brand names, URLs,
logos, symbols, characters, spokespeople, slogans, jingles, packages, and
signage.
Criteria for Choosing Brand Elements:
 1. Memorable
 Easily recognized
 Easily recalled
 2. Meaningful
 Descriptive
 Persuasive
 3. Likable
 Fun and interesting
 Rich visual and verbal imagery
 Aesthetically pleasing
 4. Transferable
 Within and across product categories
 Across geographic boundaries and cultures
 5. Adaptable
 Flexible
 Updatable
 6. Protectable
 Legally
 Competitively

20. Designing and implementing brand
marketing program
 positioning the brand in the minds of customers and achieving as much brand
resonance as possible.
 Brand-building product, pricing, channel, and communication strategies must
be put into place.

23. “The challenge for marketers in building a strong brand
is ensuring that customers have the right type of
experiences with products and services and their
accompanying marketing programs so that the desired
thoughts, feelings, images, beliefs, perceptions,
opinions, and so on become linked to the brand.”
Kevin Lane Keller

24. Branding is built over time by the company supporting its brand
strategy and in everything it does. Therefore all employees must work
as ambassadors of the brand and be consistent in how they present
the brand, Aaker.

25. Thank You