Blending Branding Theory Practice: Insights Lessons From Applying the Brand Resonance Model

1. Blending Branding Theory & Practice: Insights & Lessons From Applying the Brand Resonance Model Professor Kevin Lane Keller Tuck School of Business Dartmouth College

2. 2 Agenda A Brief History of the Model Understanding Brand Resonance Implications, Insights, & Lessons

3. A Brief History of the Model I was asked by Grey Advertising to develop a brand equity model I sketched out the basic model structure in the back of an exec ed classroom After fleshing out model details, I presented to Grey, but they passed As the result of a �Brand Equity Day� with P&G, they chose to use it as their tracking model, called it EquityScan, and calibrated it It has been adopted, sometimes just in parts, by several other companies since

4. Objectives of the Model The model had to be logical, well integrated, and grounded. The model had to be versatile and applicable to all possible kinds of brands and industry settings. The model had to be comprehensive and have enough breadth to cover important branding topics, as well as enough depth to provide useful insights and guidelines.

5. 5 Definition of Customer-Based Brand Equity The differential effect that brand knowledge has on customer response to brand marketing activity Sources: Thoughts, feelings, images, experiences, beliefs, attitudes, experiences, etc. Outcomes: Revenue enhancements & cost savings

6. Brand Resonance Brand resonance is when consumers feel that they are �in synch� with a brand Creating brand resonance involves a series of steps as part of a �branding ladder� Creating brand resonance is also characterized by a logically constructed set of brand �building blocks.�

8. Brand Resonance Building Blocks: Salience Salience Depth and breadth of brand awareness Recognition and recall at purchase and consumption How easily and often the brand is thought of In all the right places � at all the right times � in all the right ways

9. Brand Resonance Building Blocks:Performance & Imagery Performance What the brand does to meet customers' more functional needs. Brand performance refers to the intrinsic properties of the brand in terms of inherent product benefits. Imagery How people think about a brand abstractly rather than what they think the brand actually physically does. Brand imagery is thus more extrinsic properties of the brand. Four important intangible dimensions are: Type of user Brand personality History & heritage Experiences

10. 10 Superior Competitive Positioning Performance and Imagery associations should be chosen to help the brand achieve a superior competitive positioning Develop 3-5 unique brand points-of-difference (POD�s) Desirable to consumer Deliverable by the company Differentiatied from competitors Establish 2-4 shared brand points-of-parity (POP�s) Negate competitor points-of-difference Overcome perceived vulnerabilities from points-of-difference Demonstrate category credentials

11. Brand Resonance Building Blocks: Judgments & Feelings Judgments Consumers overall brand evaluations How consumers combine performance and imagery associations to form different kinds of brand opinions Quality, satisfaction, credibility, consideration, superiority Feelings Consumers emotional responses and reactions to the brand Can be mild or intense; positive or negative; or experiential or enduring in nature. Can also relate to the social currency evoked by the brand.

13. Brand Resonance Building Blocks: Resonance Resonance The extent to which customers feel that they are �in synch� with the brand Intensity or depth of the psychological bond that customers have with the brand or others Level of activity engendered by this loyalty Repeat purchase rates The extent to which consumers seek out brand information, events, or other loyal customers

14. The Four Components ofBrand Resonance Behavioral Loyalty Customers� repeat purchases and the amount or share of category volume attributed to the brand Attitudinal Attachment When customers view the brand as being something special in a broader context Active Engagement When customers are willing to invest personal resources on the brand � time, energy, money, etc. � beyond those resources expended during purchase or consumption of the brand Sense of Community When customers feel a kinship or affiliation with other people associated with the brand.

16. 16 Achieving Resonance First, must create foundation for resonance Proper salience & breadth & depth of awareness Firmly established points-of-parity & points-of-difference Positive judgments & feelings that appeal to the head & the heart

17. Achieving Resonance Then, must optimize four dimensions of brand resonance by developing marketing activities that: Overcomes physical & mental barriers for purchase & consumption Strikes an emotional chord Are a catalyst for social connections Creates meaningful opportunities for interactions

22. 22 Marketing & Resonance Any marketing activity can affect more than one dimension of resonance Interactive or multiple effects Certain categories allow for more resonance Inherently high levels of interest & activities To maximize brand resonance, increase the levels of both the intensity & activity of customer loyalty relationships

24. Brand Resonance Model Implications The brand resonance model can be used � Qualitatively to guide & interpret possible marketing actions Quantitatively to measure marketing effects

27. What I Have Learned About Using the Model It helps to have macro and micro model representations Complexity helps and hurts To really facilitate adoption, you need indices, different forms of presentation, etc. to aid learning It is rare that companies can take models �off the shelf� and apply them successfully

28. Thanks!