Brand Equity ResearchBrand Equity Research

Scott Smith

Brigham Young University

Marketing Changes…Marketing Changes…

1920’s $.50 /hr avg. wage Output doubled, but consumers had inadequate income to buy.

1930’s - 40’s $.66/hr avg. wage... production made products cheaper so consumers could buy.

1940’s customer was the retailer or wholesaler Sales Late 1940’s pent up demand, shortage, made old product

better, Chemicals, electronic advances 1960’s Customer Orientation 1970’s Competitor Orientation 1980’s Strategic Marketing Orientation 1990’s Streamlining, Optimizing Market Offerings 2000’s Global markets, Low Price, High Tech, Off Shore

Production

Marketing is a set of activities designed to satisfythe needs and wants of a market (the customer) through an exchange process.

Types of Research Studies by Stage of Product Life Cycle

Preintroduction Introduction Growth Mature Decline

Product SatisfactionName/packageProduct positioningAdvertising copyMarket response

Store Audits:Sales/shareProduct stocking,out-of-stock,In-store Promotion,Prices

Tracking:Awareness, Trial, Repeat buying

Product PerformanceSales ForecastingProduct Positioning

New usersNew product usesLine extensionsCompetitors’ activitiesProduct availability

Price elasticityCost reductions

Product and Brand Product and Brand AssociationsAssociations

Name and

Symbol

ProductAttributes Intangibles

Customer Benefits

Relative Price

Use / Application

User / CustomerCelebrity / Person

Life Style / Personality

Product Class

Competitors

Country / Geographic

Area

Brand AssociationsBrand AssociationsProduct Attributes Crest-Decay Prevention Michelin - Family Safety Vollvo - Durability

Intangibles Bayer - Fast Acting Cadillac - Quality Lexis - Luxury Technological Leadership

Customer Benefits McDonalds - Reward Snickers - Reward Rational: Thick, full body Psych: Look, feel good

Relative Price Premium / Quality Hotels: Budget: Motel 6 Economy,: Days in Midrange: Courtyard, H.I. Luxury: Marriott Super luxury: Hyatt Reg.

Luxurysuite: Embassy Suite

Use/Application Campbells: lunch to meal Bell: Reach out and touch. Food usage: start day, between meals, between meals with something, lunch, supper, dinner w/ guests, evening, weekends

User/Customer Covergirl: Young, blonde Revlon: Sophisticated Mabelline: ??? to smart, Cadbury, Schweppes: For when your tastes grow up Miller Lite: “Heavy drinkers” Less filling

Celebrity/Person Mike: Michael Jordan Reebok: Mr. Clean, Pillsbury Dough

Life Style/Persnality Betty Crocker: Honest, dependable, friendly, specialist... old and traditional, out of date

Product Class Maxim - freeze dried Parkay - butter 70up Uncola

Competitors Avis - Hertz Pontiac - VW Rabbit

Country/Geog. Area Benehana - Japan Stolichnaya - Russia

Top Management Quality Plan

Quality as perceivedby Personnel

Quality as desiredby Customer

Quality as perceivedby Customer

ACTUALACTUALQUALITYQUALITYRESULTRESULT

Involvement Gap

Planning Gap Perception Gap

Realization Gap

Value Gap

Point of View Gap

ComplianceGap

Comprehension Gap

Identifying Your Market Identifying Your Market StrategyStrategy How to Segment the Market Define the Markets for the

Product Identify Scope and

Dimensions of each Market: Size, Profitability

Expected Segment Growth Requirements for success in

each market Market standing with

established customers in each segment: Share, Pattern of repeat business, Expansion of customer’s product use, Reputation

Benefits that customers in each segment derive from the product: Economics, Better Performance, Cost

Reasons for buying the product by segment: Features, Awareness, Price, Advertising, Promotion, Packaging, Display, Sales Assistance

Customer Attitudes by Segment: Brand Awareness, Brand Image Mapping

Purchase and Use Habits Product’s Life Cycle Position

-1.6 -1.2 -0.8 -0.4 0 0.4 0.8 1.2 1.6

LUXURIOUSNESS

SPO

RTIN

ESS

CORR. WITH SEMANTIC DIFFERENTIAL SCALES

1

0.90.80.70.60.50.40.30.20.10

-0.1-0.2-0.3-0.4-0.5-0.6-0.7-0.8

MUSTANG

LINCOLN

300 ZX

PORSCHE

JAGUAR

MERCEDES

CADILLAC

ESCORT

CHEVETTE

RENAULT

SOPHISTICATED

STRONG

UNCONVENTIONAL

BOLD

COMPLEX

SPORTY FRESH

SWIFT

ELEGANT

RELIABLE

MASCULINE

CORVETTE

EXCITING

AVERAGE SUBJECT CONFIGURATION & VECTORS

PRODUCT QUALITYPRODUCT QUALITYDimensions of ExcellenceDimensions of Excellence

1. Performance. How well does a drug cure an ailment, or a piece of diagnostic equipment diagnose? A physician operate?

2. Durability. How long will the lawn mower last...any corollaries in the health care area? Treatments?

3. Conformance with Specifications. What are the inside dimensions? Corollaries with health care area? Standard procedures?

4. Features. Does the airline flight offer movies? How Many? MD11 business class (6 movies x 4) Amenities in hotel or hospital...do they differ for each area of the hospital...pediatrics Vs. medical/surgical unit.

5. The Name. Is it a name that means quality? Cars/Planes/Leather/Jewelry?

6. Reliability. Will each visit result in the same satisfaction.

7. Serviceability. Is the service system efficient, competent, convenient?

8. Fit and Finish. Does the product look and feel like a quality product?

Achieving a Sustainable Competitive Achieving a Sustainable Competitive AdvantageAdvantage Achieve differentiation in the product delivery attributes:Price, Quality, Aesthetics, Functionality, Availability, Consumer Awareness, Visibility, Service

Achieve differentiation on the key buying attributes:1, 2, or 3 attributes may be critical... Others are marginalQuality Product and ServiceName Recognition

Achieve breadth of attraction and depth of preference

Achieve Capability GapBusiness Systems GapPositioning Gaps: Reputation, Consumer Awareness, CapabilityRegulatory / Legal GapOrganizational / Managerial Gap