Chapter 8 – Brand Equity Measurement System

return of marketing investment (ROMI)
What is the new accountability problem in marketing? Virtually every marketing dollar spent today must be justified as both effective and efficient
in terms of ______. This increased accountability has forced
marketers to address tough challenges and develop new measurement approaches
Brand Audit
is a comprehensive examination of a brand to discover its sources of brand equity. In accounting, an
audit is a systematic inspection by an outside firm of accounting records including analyses, tests, and
confirmations.3 The outcome is an assessment of the firm’s financial health in the form of a report.

on the other hand, is a more externally, consumer-focused exercise to assess
the health of the brand, uncover its sources of brand equity, and suggest ways to improve and
leverage its equity. A brand audit requires understanding the sources of brand equity from the
perspective of both the firm and the consumer

Brand Inventory
• Provides a current, comprehensive profile of how all the products and services sold by a company are marketed and branded
• War rooms of every single marketing and branding effort related to a product that are posted to visually see everything the company has done to sell a product.
perceptions
Rationale: The brand inventory is a valuable first step for several reasons. First, it helps to suggest what consumers’ current _________ may be based on. Consumer associations are typically rooted in the intended meaning of the brand elements attached to them—but not always.
The brand inventory therefore provides useful information for interpreting follow-up research such as the brand exploratory we discuss next.
Brand exploratory
is research directed to
understanding what consumers think and feel about the brand and act toward it in order to better
understand sources of brand equity as well as any possible barriers.

It has preliminary activities

research
Several preliminary activities are useful for the brand exploratory.
First, in many cases, a number of prior ________ studies may exist and be relevant. It is important
to dig through company archives to uncover reports that may have been buried, and perhaps even
long forgotten,
internal
Second, it is also useful to interview _______ personnel to gain an understanding of their
beliefs about consumer perceptions for the brand and competitive brands
Mental maps and core brand associations
Brand exploratory is typically performed in one of two ways
Mental Maps
accurate portrays in detail all salient brand associations and responses for a particular target market
Core Brand Associations
abstract associations that characterize the 5 to 10 most important aspects or dimensions of a brand
Brand Tracking Studies
collect information from consumers on a routine basis over time, usually through quantitative measures of brand performance on a number of key dimensions that marketers can identify in the brand audit or other means.
believe
value
saying
take
To achieve optimal brand positioning companies must know

(1) what customers currently _____ about the brand (and thus find credible),
(2) what customers will _____ in the brand,
(3) what the firm is currently _____ about the brand, and
(4) where the firm would like to _____ the brand

Personas
are detailed profiles of one, or perhaps a
few, target market consumers. They are often defined in terms
of demographic, psychographic, geographic, or other descriptive
attitudinal or behavioral information
A personality symbol / brand characters
is something like Tony the Tiger or the Burger King, which is used to act as a spokesman for a product
Brand tracking studies
collect information from consumers on a routine basis over time,
usually through quantitative measures of brand performance on a number of key dimensions that
marketers can identify in the brand audit or other means.
strength / favorability / uniqueness
whom
benchmarks
What to track
• You should track the ______, ________ and ________ of a brand in a product category in that order

How to conduct
• Identify _____ to track, and when and where to track them
How to interpret
• Decide on appropriate ________ and design targets with allowance for competitive considerations and the nature of the category and identify the determinants of brand equity

Product brand tracking
Tracking an individual branded product requires measuring brand
awareness and image, using both recall and recognition measures and moving from more general
to more specific questions
Corporate tracking
How well managed is GE?
• How easy is it to do business with GE?
• How concerned is GE with its customers?
• How approachable is GE?
• How accessible is GE?
Global tracking
If your tracking covers diverse geographic markets—especially in both developing
and developed countries—then you may need a broader set of background measures to
Whom to track (How to conduct)
Tracking often concentrates on current customers, but it can also be rewarding
to monitor nonusers of the brand or even of the product category as a whole, for example, to
suggest potential segmentation strategies.
When and where to track (how to conduct)
How often should you collect tracking information? One useful approach
for monitoring brand associations is continuous tracking studies, which collect information from
consumers continually over time. The advantage of continuous tracking is that it smoothes out aberrations
or unusual marketing activities or events like a high profile new digital campaign or an unlikely
occurrence in the marketing environment to provide a more representative set of baseline measures.
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. Three
major steps help to implement a brand equity management system: creating brand charters, assembling
brand equity reports, and defining brand equity responsibilities
Brand Charter
or brand bible as it is sometimes
called, that provides relevant guidelines to marketing managers within the company as well as to
key marketing partners outside the company such as marketing research suppliers or ad agency
staff
equity
scope
hierarchy
tracking
brands
programs
treatment
It accomplishes these 7 things:

• 1. Define the firm’s view of branding and brand _____
• 2. Describe the _____ of key brands
• 3. Specify the actual and desired equity for brands at all levels of brand ______
• 4. Explain how brand equity is measured in terms of ______ studies
• 5. Suggests how marketers should manage ______
• 6. Outline how to devise marketing ________ along specific tactical guidelines.
• 7. Specify the proper ______ of the brand.

Brand equity report
Should describe what is happening with the brand as well
as why it is happening. It should include all relevant internal measures of operational efficiency
and effectiveness and external measures of brand performance and sources and outcomes of
brand equity.

Provide comprehensive but actionable summaries of brand-related information

senior
launch
analytics
future
• 1. _______ level execs must devote necessary resources to development and stay involved
• 2. Investment of resources doesn’t stop at _______
• 3. Graphics and _______ matter
• 4. Execs should focus on what can be measured today but learn how to improve in the ______
brand equity responsibilities
To develop a brand equity management system that will maximize long-term brand equity, managers
must clearly define organizational _____
Overseeing brand equity
Organizational design and structures
managing marketing partners
there are 3
Overseeing brand equity
To develop a brand equity management system that will maximize long-term brand equity, managers
must clearly define organizational
organizational design and structures
the firm should organize its marketing function to optimize brand equity
managing marketing partners
The performance of a brand also depends on the actions taken by outside suppliers and marketing partners, so firms must manage these relationships carefully to ensure that your brand is treated well and consistently with the brand charter
Nordstrom
the science of branding 8-2
• 1. Make the brand relevant
• 2. Make the brand accessible
• 3. Reinforce the brand continuously
• 4. Make brand education an ongoing program
• 5. Reward on-brand behaviors
• 6. Align hiring practices
6 principles
make the brand relevant
Each employee must understand
and embrace the brand meaning. Nordstrom,
whose brand relies on top-notch customer service, empowers
sales associates to approve exchanges without
manager approval.
make the brand accessible
Employees must know where they
can get brand knowledge and answers to their brand-related
questions. Ernst & Young launched “The Branding Zone” on
its intranet to provide employees easy access to information
about its branding, marketing, and advertising programs.
Reinforce the brand continuously
Management must reinforce
the brand meaning with employees beyond the initial
rollout of an internal branding program. Southwest Airlines
continually reinforces its brand promise of “a symbol of
freedom” through ongoing programs and activities with a
freedom theme.
Make brand education and ongoing program
Provide new
employees with inspiring and informative training. Ritz-
Carlton ensures that each employee participates in an
intensive orientation called “The Gold Standard” that includes
principles to improve service delivery and maximize
guest satisfaction.
Reward on brand behavior
An incentive system to reward
employees for exceptional support of the brand strategy
should coincide with the roll-out of an internal branding
program. Prior to its merger with United, Continental Airlines
rewarded employees with cash bonuses each month
that the airline ranked in the top five of on-time airlines.
Align hiring practices
HR and marketing must work together
to develop criteria and screening procedures to ensure
that new hires are good fits for the company’s brand
culture. Pret A Manger sandwich shops has such a carefully
honed screener that only 20 percent of applicants end up
being hired.