MMKT 444: Product and Brand Management
KUSOM BBA Hons
Spring 2020
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Lecture 10: Developing a Brand Equity
Measurement & Management System
© Sujan R Shrestha, KUSOM 2020.
Brand Equity Measurement System
A brand equity measurement system is a set of research
procedures that is designed to provide timely, accurate,
and actionable information for marketers so that they can
make the best possible tactical decisions in the short run
and strategic decisions in the long-run.
Brand Equity Measurement System
Implementing this system involves:
Conducting brand audits.
Brand Inventory
Brand Exploratory
Designing a brand equity management system
Brand Equity Charters
Brand Equity Reports
Brand Equity Overseers
Developing tracking procedures.
Conducting the Brand Audit
A brand audit is a comprehensive examination of a brand
involving activities to assess the health of the brand,
uncover its sources of equity and suggest ways to improve
and leverage that equity.
A brand audit requires understanding sources of brand
equity from the perspective of both the firm and the
consumer.
Specifically, the brand audit consists of two activities:
Brand Inventory
Brand Exploratory
Brand Inventory
The purpose of the brand inventory is to provide a complete, up-
to-date profile of how all the products and services sold by a
company are marketed and branded.
For each product, the relevant brand elements must be identified,
as well as the supporting marketing program. This information
should be summarized both visually and verbally.
Although primarily a descriptive exercise, some useful analysis can
be conducted.
Consistency
Brand Exploratory
The brand exploratory is research activity designed to
identify potential sources of brand equity.
The brand exploratory provides detailed information as to
what consumers think of and feel about the brand.
Although reviewing past studies and interviewing relevant
personnel provides some insights, additional research is
often required.
To allow a broad range of issues to be covered and also
permit those issues to be pursued in-depth, qualitative
research techniques are often employed first.
To provide a more specific assessment of the sources of
brand equity, a follow-up quantitative phase is often
necessary.
Brand Equity Management System
(Three Steps): Step ONE
1. Formalize company position and philosophy into a Brand
Equity Charter to provide relevant guidelines to marketing
managers.
Importance of brands and brand equity
History of brand
Brand positioning
Core brand values
Core brand promise (“brand mantra”)
POP/POD
Brand guidelines
Strategic
Tactical
Brand Equity Management System
(Three Steps): Step TWO
2. Assemble results of tracking survey and other relevant
outcome measures into a Brand Equity Report distributed
to managers on regular basis
Provides descriptive information as to what is
happening with a brand as well as diagnostic
information as to why
Brand Equity Management System
(Three Steps): Step THREE
3. Establish position of VP or Director of Equity
Management to oversee implementation of Brand Equity
Charter and Reports
Ensure that, as much as possible, marketing of the
brand is done in way that reflects the spirit of the
Charter and the substance of the Report
Developing Tracking Procedures
Tracking studies involve information collected from
consumers on a routine basis over time
Often done on a “continuous” basis
Provide descriptive and diagnostic information
Key decisions
What to track
Who(m) to track
When and where to track
How to interpret tracking studies
Understand ROI of
Marketing Investments
Marketing
VALUE Customer Market Shareholder
Program
STAGES Mindset Performance Value
Investment
- Product - Awareness - Price premiums - Stock price
- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Market share - Market
- Other - Attachment - Expansion success capitalization
- Activity - Cost savings
- Profitability
Brand Value Chain
Marketing
Customer Market Shareholder
Program
VALUE Mindset Performance Value
Investment
STAGES
- Product - Awareness - Price premiums - Stock price
- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Market share - Market
- Employee - Attachment - Expansion success capitalization
- Other - Activity - Cost structure
- Profitability
FILTERS
Brand Value Chain
Marketing
Customer Market Shareholder
Program
VALUE Mindset Performance Value
Investment
STAGES
- Product - Awareness - Price premiums - Stock price
- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Market share - Market
- Employee - Attachment - Expansion success capitalization
- Other - Activity - Cost structure
- Profitability
Program
FILTERS Multiplier
Clarity
Relevance
Distinctiveness
Consistency
Brand Value Chain
Marketing
Customer Market Shareholder
Program
VALUE Mindset Performance Value
Investment
STAGES
- Product - Awareness - Price premiums - Stock price
- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Market share - Market
- Employee - Attachment - Expansion success capitalization
- Other - Activity - Cost structure
- Profitability
Program Consumer
FILTERS Multiplier Multiplier
Clarity Channel support
Relevance Consumer size & profile
Distinctiveness Competitive reactions
Consistency
Brand Value Chain
Marketing
Customer Market Shareholder
Program
VALUE Mindset Performance Value
Investment
STAGES
- Product - Awareness - Price premiums - Stock price
- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Market share - Market
- Employee - Attachment - Expansion success capitalization
- Other - Activity - Cost structure
- Profitability
Program Consumer Market
FILTERS Multiplier Multiplier Multiplier
Clarity Channel support Market dynamics
Relevance Consumer size & profile Growth potential
Distinctiveness Competitive reactions Risk profile
Consistency Brand contribution
Start your Brand Audit…
For ANY existing brand – local or multinational brand!
1. Brand Audit Report, analysis and recommendation
in case format… about 20-25 pages…
2. An article… about 1,000 – 1,500 words…
3. A presentation file of the same…
Due: ??
