Brand Equity Research

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Brand Equity Research

• Scott Smith

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

• 1920s .50 /hr avg. wage Output doubled, but
  consumers had inadequate income to buy.
• 1930s - 40s .66/hr avg. wage... production
  made products cheaper so consumers could buy.
• 1940s customer was the retailer or wholesaler
  Sales
• Late 1940s pent up demand, shortage, made old
  product better, Chemicals, electronic advances
• 1960s Customer Orientation
• 1970s Competitor Orientation
• 1980s Strategic Marketing Orientation
• 1990s Streamlining, Optimizing Market Offerings
• 2000s Global markets, Low Price, High Tech, Off
  Shore Production

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Types of Research Studies by Stage of Product
Life Cycle
Preintroduction Introduction Growth Mature
Decline
New users New product uses Line
extensions Competitors activities Product
availability
Store Audits Sales/share Product
stocking,out-of-stock,In-store
Promotion,Prices Tracking Awareness, Trial,
Repeat buying
Product Satisfaction Name/package Product
positioning Advertising copy Market response
Product PerformanceSales
ForecastingProduct Positioning
Price elasticity Cost reductions
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Product and Brand Associations
ProductAttributes
Country / GeographicArea
Intangibles
Customer Benefits
Competitors
Name andSymbol
Relative Price
Product Class
Use / Application
Life Style / Personality
User / Customer
Celebrity / Person
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Brand Associations
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ComplianceGap
Top Management Quality Plan
Quality as desired by Customer
Involvement Gap
Realization Gap
ACTUAL QUALITY RESULT
Value Gap
Point of View Gap
Planning Gap
Perception Gap
Quality as perceived by Personnel
Quality as perceived by Customer
Comprehension Gap
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Identifying Your Market Strategy

• 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 customers 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
• Products Life Cycle Position

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AVERAGE SUBJECT CONFIGURATION VECTORS
CORR. WITH SEMANTIC DIFFERENTIAL SCALES
1
SPORTY
FRESH
0.9
300 ZX
0.8
MASCULINE
0.7
EXCITING
MUSTANG
PORSCHE
SWIFT
0.6
RELIABLE
CORVETTE
BOLD
0.5
0.4
UNCONVENTIONAL
0.3
STRONG
ESCORT
SPORTINESS
0.2
0.1
0
SOPHISTICATED
-0.1
ELEGANT
CHEVETTE
COMPLEX
-0.2
-0.3
JAGUAR
-0.4
-0.5
RENAULT
MERCEDES
-0.6
LINCOLN
-0.7
CADILLAC
-0.8
-1.6
-1.2
-0.8
-0.4
0
0.4
0.8
1.2
1.6
LUXURIOUSNESS
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PRODUCT QUALITYDimensions 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?

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Achieving a Sustainable Competitive Advantage

• Achieve differentiation in the product delivery
  attributesPrice, Quality, Aesthetics,
  Functionality, Availability, Consumer Awareness,
  Visibility, Service
• Achieve differentiation on the key buying
  attributes1, 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