Module 4 : Build Your Brand

What is a Brand?

Definition: A distinguishing name or symbol intended to identify an offering and differentiate it from competitors. It represents a set of promises to customers—a contract.

• Role: Translates your positioning statement (superior value to target) into intangible elements that will later become a tangible customer experience.

Building Brand Intangibles (Brand Essence Statement)

urpose: Creating a set of intangible elements customers associate with your offering; it's consistent with positioning but goes deeper into what makes the brand unique.

• Elements (templates usually include):

    ◦ Benefits (WHAT): Emotional and/or functional, with justification.

    ◦ Character traits (WHO): Thinking of the brand as a person.

    ◦ Connection (HOW): How the brand makes customers feel.

    ◦ Purpose (WHY): A short sentence summarizing everything.

• Common Brand Personality Traits (WHO): Sincerity (e.g., Patagonia), Excitement (e.g., Red Bull), Sophistication (e.g., Cartier), Ruggedness (e.g., Marlboro), Competence (e.g., Accenture).

Brand Image vs. Brand Essence vs. Brand Gap

• Brand Essence Statement: Summary of intangible elements intended to make your brand unique.

• Branded Customer Experience: Converting brand intangibles into tangible elements consumers can feel, see, touch, hear.

• Brand Image: The perception of your brand by consumers after experiencing its tangible elements.

• Brand Gap: A discrepancy between how you intended your brand to be perceived (essence) and how it is actually perceived (image).

• Goal: Consistency between brand essence and brand image leads to a consistent message and ultimately brand equity.

Measuring the Path to Brand Equity

• Brand Equity Definition: The added financial value brought by the brand only to the company. It arises from customers associating an offering with a specific brand essence, creating a network of associations that reduce costs and increase sales (e.g., through loyalty).

Four Main Steps in Building Positive Brand Equity (each building from the previous)

1. Build the right brand image: Measure automatic associations consumers make (e.g., projective techniques, word clouds).

    2. Brand Value Research: See if brand associations impact the perception of value. Focuses on the personal significance of the brand. Dimensions: functional, psychological, and monetary.

    3. Brand Power Research: See if your brand changes actual consumer behavior (e.g., increased likelihood to buy, talking about the brand). Net Promoter Score (NPS) is a famous measurement of brand advocacy, often a proxy for brand equity.

    4. Create financial value (Brand Equity measurement): Assesses brand equity as the net present value of a brand’s future earnings (e.g., Interbrand, Brand Z, Brand Finance rankings).

• Virtuous Cycle: Positive associations → Positive attitudes → Change in consumer behavior → Additional financial value.

• Crucial Step: Successfully bridging brand essence and customer experience at all customer touchpoints by translating intangible elements into tangible ones.