A Compendium of Branding A useful definition is that a brand is the sum total of all that is known, thought, felt and perceived about your company, service or product. Branding, then, is the process of making products and companies into brands - the consistent anddisciplined way a company communicates a brands essence to the public. Consumers response to the brand revolves around the brands image. This makes the concept an essential input into marketing strategy since a positive, strong brand image willpresumably lead to choosing a particular brand. In this piece we are going to run through a few of the more useful brand measurement approaches we have encountered, or developed for our use. PertinentMethodologies Brand measurement is being practiced by a fairly broad range of users, and in a number of different ways. Many corporate clients are already doing some form of brand measurement themselves. Their agencies and consultantsare also providing that expertise where needed. Basic awareness and brand tracking research is being done at the corporate and ad agency level. The more sophisticated methodologies are probably being used by the branding firms, other marketingservice providers, and by the some clients themselves. We have seen a number of very effective methodologies being offered to clients. There is no shortage of approaches. Frankly, we think they have more things in common than not. And thatincludes our own. The benchmarking techniques (the various scorecards)-like brand equity, reputation, retention, permission-serve to identify the key drivers to brand perceptions and behavior, and some also establish metrics which can be trackedover time. What permits this are any number of statistical techniques-such as multidimensional scaling, logit analysis, correspondence analysis, conjoint/choice modeling, etc., and even basic analyses like regression and analysis of variance(ANOVA). Choice Modeling of Brand EquityConceptually, we place brand measurement within a brand equity framework based on random utility theory: Achieving strong brand differentiation is absolutely fundamental to building a compellingbrand relationship with customers. Brand equity can be thought of as the differential effect of brand knowledge on consumer response to the marketing of the brand. Brand knowledge comprises two components: Brand awareness (brand recognition and brandrecall)- knowledge of the brand in memory and the ability to recall it; and Brand image - consumer perceptions about a brand held in consumers minds (ideally, favorable, strong, and unique brand associations). Fundamentally, high levels of brandawareness and a positive brand image should increase the probability of brand choice. That is the fundamental goal of managing ones brand. The questionnaire design typically used includes questions that measure both of these brand knowledgecomponents: Awareness measures to evaluate brand recall and recognition; Projective and multivariate statistical techniques to compare a brands image to competitor brands. The principal analyses typically used are regression, correspondenceanalysis, and multidimensional scaling. Brand equity only exists as a function of consumer choice in the marketplace. And although marketing and communications efforts can create and change brand images, brand equity comes into being when a consumerchooses a product or service. Hence, a brand or a corporation does not possess brand equity, but is attributed equity by the consumer. Brand equity occurs when the consumer is familiar with the brand and holds some favorable, strong, and unique brandassociations in memory. A Framework of Brand Equity Formation Basic Brand Trackingis a scorecard that permits a brand equity assessment of a brand. Measuring brand equity provides clients with a basis for judgingthe effectiveness of brand building activities and helps them diagnose exactly how the brand, as an asset, is progressing over time (measuring, for example, growth in awareness, familiarity, commitment, etc-compared to key competitors). Theassessment helps identify the critical forces behind a brands success, failure, and all points in between, to improve the effectiveness of brand building activities. By design, there is a benchmark measurement followed a subsequent follow-upwave(s). A benchmark study provides the framework for this comparison over time. In the case of SuperBrand, a current US survey could serve as a benchmark against subsequent European studies and other waves within the US market. These are used tomeasure SuperBrand brand equity movement after, say, a targeted advertising campaign. When framing a brand assessment study, we seek to understand the specific factors that drive the brand within the clients marketplace, rather than assumethat the importance of the components of equity for one brand in one market are the same as for other brands in other markets. Therefore, the measurements are configured to the clients market structure and competitive dynamics and are sensitive tochanges specific to their environment over time (i.e., benchmark as compared to Wave 1 as compared to Wave 2, …etc.). Analytically, the drivers of the brand and changes in marketplace dynamics, relative to the key constituencies, aremodeled. Typical output is: An assessment of the brand vis-à-vis key current and potential competitors on each of the components, with a special focus on distinction and commitment components; Perceptual maps that graphically show the positionof the brand on key component elements; Differences in the drivers of commitment by audience; Changes in the brand vis-a-vis its competitors versus the benchmark wave; Changes in marketplace dynamics versus the benchmark wave; and, Recommendationsregarding brand strategy. Brand ReputationThe Corporate Social Responsibility field has contributed several approaches that are well suited for measuring brand equity. Our proprietary reputation measurement system is a useful framework formeasuring brand equity among stakeholders (it groups stakeholders into customers, society, employees, and capital providers, all within the umbrella of targets of SuperBrand). The model uses brand association patterns to show the degree to whichstakeholder groups contribute to brand reputation according to specific parameters like overall opinion, loyalty, satisfaction, and advocacy. Brand reputation measurement can be used in specific situations, and an argument can be made that reputationresearch is also an appropriate general-purpose brand measurement tool. Figure 1-SuperBrand Brand Reputation DriversBrand PermissionWe recently developed a brand permission methodology that has been a greatsuccess. To date, a client has been using it for forecasting, but we believe it also has great potential as a branding tool. Brand Permission measures the extent to which customers accept a brand as a legitimate competitor for their business, inwhatever business sector. The brand permission concept is quite simple. We recognize that in any given market, brand imagery will resonate-sometimes more strongly, sometimes less so-and that this will profoundly impact the potential success of abrand relative to its competition. We use the terms Mindshare and Brandshare to capture this phenomenon. Mindshare is based on association (the extent to which customers associate a brand with the product or service), and is a measure ofawareness. But awareness is in itself an incomplete measure because we dont know the probability that brand awareness will be converted to brand preference (usage). Brand Permission now layers an affinity measure (the degree of interest the customerhas in doing business with the brand) atop mindshare. For example, a customer can associate SuperBrand strongly with shopping, but have no affinity for SuperBrand, preferring instead to do business with SuperBrandcompetitors. Table 1-SuperBrand Mindshare and Point Allocations A powerful way of employing Brand Permission is as a market potential discounting system. It can be applied as a multiplier in conjunctionwith a clients market-sizing estimates associated with a brand. The product of market size estimates and Brand Permission provides the client with brand potential estimates that are revenue-comparable across disparate opportunities. BrandPermission analysis examines the point allocations (constant-sum task) that respondents assign to various mindshare categories-First Mention, All Unaided Mentions, and Total Mentions. The trend itself is very important. If the slope is downward, thebrand is in an initially strong position but may forego share according to the actions of other existing brands or the entrance of any new brands into the space. Other brand profiles indicate who the predator competitors are (or will be). If theslope is upward, the brands initial position is weak and share will have to be garnered over time. Obviously, the former is the more desirable profile for a brand to have. In Table 1 (above) we see that SuperBrand has quite a strongtop-of-mind showing, with a total of 41 percent of all mentions in the category. However, if we examine SuperBrands share of points, it receives a total of 29 percent of the points allocated. Examining Table 2, the Index (PointsShare/Mentions Share) shows that, while many people are aware of SuperBrand, they prefer to do business with competitors such as Armstrong, World-Mart, or Brand Empire. Table 2-SuperBrand Mindshare and Point Allocationsgoal is to help the client choose the best name with the least risk from the list of final name candidates (or the best package design). Our proprietary name/package design evaluation technique, Brandcom, has been used successfully for over tenyears. This methodology was designed specifically for the purpose of mapping the performance of a set of designs (including names) in relation to: each other established brands in the category (treated as control); a well-specified positioningstrategy. The test permits clients to evaluate test names relative to the intended positioning strategy, as well as in terms of aesthetic appeal. Brandcom can also be used-with slight modifications-to measure concept fit as well if the name isattached to a new product. The inclusion of competitive brands is a major strength of Brandcom. We believe that for a new name to be successful, it must not only be on target insofar as its own strategy is concerned, but also succeed in giving thebrand sufficient differentiation capabilities in the marketplace and in the minds of consumers, who are bombarded with advertising and communications in general. The test also includes a section on aesthetic appeal to determine the name likedmost and the images and associations aroused by the best-liked name. This sequence of questions deepens managements understanding of a names dynamics beyond the specified strategy dimensions. Table 3-Brandcom Output-SuperBrandPotential Name The principal output of the Brandcom test is a series of perceptual maps-for the sample in total and for relevant sub-groups-providing direct, graphic representation of the performance of all the names onall the attributes simultaneously. The results of the other sections of the test, e.g., appeal, reasons for appeal, etc., are made available in tabular and in graphic form. We use a variation of our name testing technique forpharmaceutical name evaluation. Due to the significance of regulatory criteria for FDA and EMEA approval, performance on regulatory issues takes precedence. Final names are evaluated in terms of both regulatory and marketing criteria-regulatorycriteria address brand confusion issues and other issues of concern to regulators, while marketing issues pertain to more traditional brand-building measures.Note that for evaluating finished package design alternatives, essentially the same basicmethodology can be employed. However, for package design optimization issues, we utilize an entirely different evaluation approach-choice modeling. Closing Thoughts Clients increasingly demand business-building ideasthat extend beyond advertising and communications. Ad agency brand planners, branding consultants, and other marketing services providers are being pushed to become wider and deeper thinkers than they were in the past. Quantitative brand measurementtechniques such as those discussed here can be used effectively to help marketers manage brands, and can also drive insights that lead to the big ideas that clients seek. food | milk | vegetables
Posted on: Fri, 23 Jan 2015 20:14:34 +0000
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