CIM Level 6 Brand Proposition

Why do organisations need to differentiate themselves?

• Avoid commoditisation

• Reduce price competition

• Create competitive advantage

• Help customers perceive unique value and stand out in crowded/mature markets

How does differentiation create competitive advantage?

Offers value that competitors can’t easily replicate through functional, emotional, or experiential assets, leading to stronger positioning and increased brand equity.

What are Porter’s Generic Strategies?

• Cost leadership = offers the lowest price in market

• Differentiation = unique desirable products that stand out vs competition

• Focus/Niche = specialised products in a niche market

Stops organisations being “stuck in the middle”.

What are the risks of being “stuck in the middle”?

• Weak positioning

• Unclear value propositions

• Poor competitive performance

Why is market knowledge essential for differentiation?

Enables organisations to understand customer needs, motivations, and pain points.

What is a CVP?

Customer value propositions explain who the target customer is, what problem the organisation solves, how it’s different from competitors, and why the customer should believe the claim.

What are the core components of an effective CVP?

• Problem/solution fit

• Differentiation

• Proof of value delivery

How do the core components of an effective CVP drive customer motivation?

• When a brand addresses problems/unmet needs the value proposition becomes relevant and compelling

• Differentiation helps customers understand why one brand is better to alternatives, reducing choice and increasing perceived value

• Proof builds credibility and trust showing a brand can deliver its promises through evidence like reviews

How does mapping the customer journey improve CVPs?

Identifies pain points and moments of truth, enable organisations to design CVPs that deliver consistent and relevant value at each stage.

How can organisational resources create competitive advantage?

Resources create competitive advantage when they’re valuable, rare, difficult to imitate and supported by the organisation (VRIO framework)

Why are people skills critical to brand proposition?

People deliver brand experience, represent brand values, and influence customer perception through service quality and relationship-building

How do financial resources support competitive advantage?

They enable investment in innovation, marketing, talent, and customer experience, support sustainable brand propostions

Why is cross-functional working important to brand success?

Ensures consistency, efficiency, and alignment in delivering the brand promise across the organisation

Why is innovation a source of competitive advantage?

Allows organisations to meet evolving customer needs, differentiate from competitors, and sustain relevance in dynamic markets

Why is delivering the promised customer experience critical?

Failure of this damages trust, satisfaction, and brand equity, weakening long-term competitor advantage

What role does internal comms play in brand delivery?

Aligns employee with brand values and propositions, ensuring consistent customer experiences across touchpoints

What are brand attributes?

Defining characteristics associated with a brand shaping its perception, positioning, and customer expectations

How is a brand defined?

A set of perceptions, associations, and experiences held by stakeholders extending beyond visual identity to values, purpose, and behaviour

What is brand purpose?

Explains why a brand exists beyond profit and how it contributes value to society or customers

What is brand equity?

The added value a brand gives to products through awareness, associations, loyalty, and perceived quality

What is Kapferer’s Brand Identity Prism?

A framework defining brand identity through six elements:
1) physique = physical characteristics
2) personality = tone/voice
3) culture = values and beliefs
4) relationship = how brand behaves
5) reflection = target customer image
6) self-image = how customers feel using brand

What does “personality” mean in Kapferer’s Prism?

The brand tone, voice, and character traits, often linked to Aaker’s brand personality dimensions

What is brand positioning?

How a brand is perceived relative to competitors in the minds of the target audience

What are the main types of brand architecture?

1) Branded house = one master brand across all products, strong consistency and equity sharing
2) Sub-brands = combining master brand with distinct product brands, adds differentiation within portfolio
3) Endorsed brands = individual brands supported by a parent brand, parent lends credibility
4) House of brands = separate standalone brands, little visible connection to parent

How do brands add value to customers?

1) reduce risk
2) simplify choice
3) build trust and loyalty
4) create emotional connection
5) enable self-expression

What does CBBE model mean?

customer-based brand equity model

Explain the CBBE model

brand equity is built through customer perceptions and experiences and it’s structured as a 4-level pyramid:

Level 1: Identity = Salience
Level 2: Meaning = Performance & Imagery
Level 3: Response = Judgements & Feelings
Level 4: Relationship = Resonance

What does each level of the CBBE pyramid represent?

1) Salience = brand recognition & recall
2) Performance = functional delivery
3) Imagery = emotional & symbolic associations
4) Judgement = customer evaluations
5) Feelings = emotional responses
6) Resonance = loyalty, attachment, advocacy

Why is the CBBE model important for brand building?

• Shows how equity is built

• Links customer perception to brand value

• Guides positioning and experience design

• Helps move customers from awareness to loyalty

What is Aaker’s Brand Equity Model?

Brand equity is built from 5 key assets:
1) Brand loyalty
2) Brand awareness
3) Perceived quality
4) Brand associations
5) Proprietary assets (trademarks, patents, licenses etc)

How does relationship marketing add brand value?

Relationship marketing focuses on long-term engagement, increasing loyalty, retention and customer lifetime value

What is a brand audit?

it evaluates brand performance, positioning, perception, consistency, and equity to inform strategic decisions

What is micromarketing?

Targeting highly specific audiences or communities with tailored messaging reflecting social, cultural, or ethical relevance

market research vs marketing research

Market Research

• Understand market environment

• Broad, external focus

• Trends, competitors, customer needs

Marketing Research

• Evaluate marketing actions

• Narrow, action-focused

• Test campaigns, product concepts, pricing

How does brand innovation help formulate a clear vision, identity, and purpose?

• Drives continuous improvement

• Builds competitive edge

• Meets evolving customer needs

• Supports brand vision, identity, purpose, and management

What are the 3 main types of brand innovation?

1) product innovation
2) service innovation
3) marketing process innovation

Which 5 brand elements are strengthened by innovation?

• brand audit insights

• brand equitu (CBBE)

• identity & purpose

• management effectiveness

• brand vision clarity

what are the 8 risks and barriers to brands?

1) crisis/reputation damage
2) competition
3) changing customer preferences
4) counterfeiting/imitation
5) supply chain risks
6) lack of innovation
7) lack of investment
8) social media influence

in what 7 ways can brands overcome risks and barriers?

1) reputation/crisis management
2) resource-based view & VRIO framework
3) customer research
4) intellectual property protection
5) strong supplier relationships
6) diverse supply chains with shared values
7) financial investment in brand & innovation

what 8 attributes makes a brand strong?

1) authentic
2) consistent
3) clear
4) relevant to target audience
5) emotional connection
6) differentiated
7) innovative
8) strong equity

what are the four T’s of reputational risk management?

1) tolerate = accept minor risk if low impact
2) treat = act to reduce risk through policies, training, controls
3) transfer = share risk via insurance or partnerships
4) terminate = stop activities causing high risk

what are the 8 main brand strategies?

1) differentiation
2) cost leadership
3) niche
4) brand extension
5) co-branding
6) cause-led branding
7) customer experience focus
8) rebranding

what is a differentiation strategy?

brands that stand out through unique features, quality, or experience, appealing to customers willing to pay premium

what is a cost leadership strategy?

compete by offering lowest costs in the market to attract price-sensitive customers

what is a niche strategy?

targets specific segments with specialised needs focusing on deep expertise and customer loyalty

what is brand extension?

launching new products under existing brands leveraging brand equity to reduce risk

what is co-branding?

partnership of two brands on a product combining their equity and audience reach

what is cause-led branding?

brands that align with social/environmental causes to build emotional connection and trust

what is brand promiscuity?

a brand appearing in multiple unrelated categories, which can dilute focus and equity

what is brand essence?

the core, timeless identity of a brand expressed as a word or short phrase

what are the key legal issues for branding?

1) GDPR
2) privacy policy
3) IP protection
4) copyright
5) trademarks
6) patents
7) service level agreements (SLAs)

what’s Hofacker’s model in marketing communications?

customers process marketing messages in 5 stages:
1) exposure = customer sees/hears message
2) attention = customer notices and focuses on it
3) comprehension & perception = customer understands the message and interprets it
4) yielding/acceptance = customer evaluates and is persuaded to act
5) retention = customer remembers the message for future decisions