SBM L7 - Brand equity measuring and management system_b58402825e482fd9f0cfd2fae6759860

CCBS4015 Strategic Brand Management

Topic 7: Developing a Brand Equity Measurement and Management System

Learning Objectives

• ROMI Understanding: Describe the new accountability regarding Return on Marketing Investment (ROMI).

• Analytics Dashboards: Understand how analytics dashboards can be used to monitor brand performance and evaluate the impacts of investment.

• Brand Audit Steps: Outline the two main steps involved in conducting a brand audit and executing a digital marketing review.

• Tracking Study: Describe the design, conduct, and interpretation of a tracking study.

• Brand Equity Management: Identify the steps required to implement a brand equity management system.

The New Accountability

Overview of Accountability in Marketing

• Justification of Spending: It is essential for marketing expenditures to demonstrate both effectiveness and efficiency in relation to ROMI.

• Challenges: Linking brand equity improvements to short-term profits is difficult; therefore, measuring long-term value is crucial.

• Digital Economy Trends: Focus on building long-term relationships over immediate profits.

• Tools Needed: Marketers require new metrics and processes to validate brand investments beyond traditional ROMI measures.

Conducting Brand Audits

Purpose of Brand Audits

• Comprehensive Examination: A brand audit assesses sources of brand equity and consumer perceptions.

• Consumer Focus: Assesses how consumers interact with and interpret the brand to inform strategic decisions.

• Strategic Direction: Helps guide branding and marketing plans, especially during significant strategic shifts.

Steps in Brand Audit

• Brand Inventory: Cataloguing current branding elements and marketing practices.

• Brand Exploratory: In-depth understanding of consumer perceptions and insights for brand management.

A. Brand Inventory

Definition and Process

• Comprehensive Profile: Captures how products/services are marketed; involves cataloging brand elements like names, logos, and characteristics.

• Methods:

  • Assess product attributes and marketing activities.

  • Ensure consistency across all marketing channels.

Digital Asset Insights

• Analyze brand presence on digital platforms.

  • Identify outdated or overlapping brand assets.

  • Discover gaps in digital presence in key channels.

Outcomes of Brand Inventory

• Consumer Perception Basis: Understand current consumer perceptions and guide further research.

• Descriptive Insights: Provides a foundation for further investigation into brand equity management.

• Consistency Monitoring: Reveal deviations in brand presentation due to geographic expansion or product line extensions.

B. Brand Exploratory

Understanding Consumer Perceptions

• Goal: Clarify how consumers perceive the brand versus the marketer's intent.

• Preliminary Activities Involved:

  • Review prior research for relevance.

  • Conduct interviews with internal staff to understand their perspectives.

  • Utilize qualitative research techniques for deeper insights.

Qualitative Research Techniques

• Criteria: Employ methods with appropriate direction, depth, and diversity to obtain valuable insights.

• Mental Maps: Create visual representations of brand associations within the target market.

Core Brand Associations

• Significance: These associations impact brand positioning and influence consumer perceptions.

• Implications for Positioning: Understanding core and associated brand attributes informs marketing strategies.

Additional Insights from Brand Exploratory

Digital Marketing Review Benefits

• Identifies how well the brand's digital strategies are functioning.

• Provides insights into customer behavior relevant to brand strategy development.

Leveraging Social Media Data

• Use data for tracking brand conversations that provide real-time insights into consumer sentiment and behavior.

• Pros and Cons: While social media data offers timely information, it may not represent the entire consumer base.

C. Brand Positioning and Supporting Marketing Program

Moving Towards Ideal Positioning

• Goals: Align consumer beliefs about the brand with firm marketing objectives and desired brand characteristics.

Involvement in the Planning Process

• Stakeholders: Include marketing research, production, and external partners in brand positioning efforts for cohesive messaging.

Designing Brand Tracking Studies

Purpose and Implementation

• Routine Data Collection: Enables tactical decisions through less detailed information tracked over time.

• Consistent Baselines: Essential for evaluating marketing efforts as brands expand and evolve.

What to Track

Key Performance Measures

• Product-Brand Tracking: Focus on recall, recognition, and benefit associations to assess brand equity.

• Corporate Brand Tracking: Understanding consumer associations with both corporate and product brands is essential for maintaining brand equity.

Big Data & Marketing Analytics Dashboards

Importance of Big Data

• Data from mobile payments and social media supports continuous brand performance tracking.

• Dashboards Role: Communicate metrics for informed decision-making and alignment with brand health and financial returns.

Establishing a Brand Equity Management System

Importance of Structure

• Internal Framework: Organizes resources to leverage brand equity effectively; prevents internal threats to equity due to short-term focus.

Major Steps in Implementation

1. Creating Brand Charters: Guides internal and external marketing operations.

2. Assembling Equity Reports: Regular performance assessments contribute to strategic decision-making.

3. Defining Responsibilities: Establish roles to ensure consistency in brand management across departments.

Brand Charter or Bible

Purpose and Contents

• Formal Guidelines: Outlines branding philosophy, product scope, desired equity, and points of differentiation.

• Annual Updates: Keeps the charter relevant based on market conditions and organizational shifts.

Brand Equity Report

Regular Performance Assessment

• Distribution and Content: Regular updates include internal and external performance measures to assist decision-making.

• Consumer Insights: Summarizes consumer perceptions and market-level information to provide a comprehensive view of brand equity.