The second part – brand assets

• An abstract of the fifth chapter

The value of the name is the same as the property of the brand

Definitions of brand assets from marketing managers:

• Brand equity can be considered an excess cash flow that results from the association of a brand with related products or services.
• Brand equity is the difference between the value of the brand in the eyes of the consumer and the value of the product without the brand.
• Brand equity is a measurable financial value in transactions that adds value to a product or service through successful branding programs and activities.

Definitions of brand assets by academics:

• Specific descriptive beliefs and universal values that consumers have learned to attribute to the brand name.
• The incremental cash flow that happens for a branded product is much higher than the cash flow from selling a product.

Both groups consider brand equity from the financial aspect or the consumer’s emotional attitude towards the brand.

Strong brand benefits for financial value

• High brand loyalty stabilizes future sales.
• High commercial cooperation and support reduces the need for commercial incentives.
• Stability in higher prices
• Higher profit margin compared to competitors
• Less fluctuation in price
• Obstacle in the way of new competitors
• Low risk in product development and production line

consumer:

Acker describes brand assets as a set of assets and capabilities and categorizes them into 4 groups: Brand awareness – Brand participation – Visible quality – Brand loyalty

Brand equity originates in the consumer’s consciousness and triggers associations in memory that are associated with the brand.

When the taste preference is based solely on sensory information or when people do not know what they are drinking, only the part of the brain that deals with sensory information is activated, but when the brand is known, other areas in the brain are also activated and The final evaluation is subject to change.

In general, the definition of brand assets from the consumer’s point of view:

Brand awareness leads to learning and forming a kind of perception of the brand, which itself is affected by emotional connections, and the result is brand preference and loyalty to it.

Brand awareness affects purchases in two ways: Recognition and recall

Recognizing is the perception, recognition and recognition of something or something that has already been experienced, recognition is called; In other words, recognizing and recalling what we have learned before, among several things, is called recognition.

Answering questions with four options is a form of recognition; Because there is an answer and one must identify it, but in remembering, there is no answer and one must completely remember the subject. Like, answering a descriptive question.

Brand perception:

Over time, connections are made and perceptions are formed. The result of a positive and strong brand perception is brand preference and loyalty.

Hofmeyr transformation model

We have a very good model called Hoffmeier transformation model. This model is about customer switching.

First of all, you should note that the issue of switching is also related to us, because my client may also switch. This model contains a set of questions that are designed to assess the likelihood of a customer moving. Mr. Hofheimer says that customers switch based on their commitment. Her basic assumption is that customers who are not committed are more likely to switch to another supplier. Commitment is also a function of satisfaction with the brand or offer, attractiveness of alternatives, and involvement in the brand or offer.

A fanatical customer may not change her supplier in the long term. For example, a customer who is very biased towards her old phone.

• Those who are moderately committed (semi-committed) will not change their supplier in the short term, but will gradually think about why all their phones are advanced and will start to change in the medium term.
• The non-committed are those who, for example, go to whoever sells cheaper, these customers don’t care about anything.

To form the Hofmeyr model, consider two dimensions.

1- Think about customers first Be yourself and categorize them. Determine which customers have a low switch risk and which ones have a high switch risk and try to have a plan for each.

2- As usual, we also think about competing customers. We call competing customers non-customers. The plan is to get competing customers to switch to me.

1) specifications of committed and non-committed customers

• Committed customers

• Inflexible customers: It is unlikely that these customers will change their supplier in a long-term future.
• Moderate.customers: These customers are unlikely to change in the short term, but may be willing to change in the medium term.

• Uncommitted customers

• Surface customers.: These customers have less commitment than intermediate customers and some of them have already made new choices.
• Changeable and convertible customers:. These customers are most likely to change.

2) Specifications of non-customers

• Non-flexible customers

• Available non-customers:. These people are ready to change and have a strong desire to change their supplier.
• Quirky and indecisive non-customers: These people are hesitant between the old and the new brand. They are attracted to other options as much as the current brand is attractive to them.

• Unreachable non-customers

• Non-customers with weak interest:.These people prefer their current brand.
• Strongly interested non-customers: They are very interested in their current brand. . . .

Hoffmeier claims that these characteristics can be used to guide recruitment and retention strategies. She suggests that if the number of open non-customers is greater than the number of uncommitted customers, companies should focus heavily on customer acquisition. Companies must nurture their relationships with committed customers and reassure them that their decision is wise, and also find ways to improve the customer experience.

• A summary of the sixth chapter:

Measuring brand equity with two general methods of quantitative and qualitative research:

Qualitative research: Focus groups: Understanding motivation Consumers with questions:

How does thinking about a brand make you feel?

What is the importance of the product in your life?

How do you use the brand?

How do you feel when you use the brand?

What else makes you feel the same way?

What is your first memory of the product?

How would your life be without such a product?

or in an approximate way (in cases where a person does not want to talk about their personal feelings or when the main drivers are ambiguous. (Why are your friends buying this product? / Put yourself in the shoes of the brand.)

Benefit structure

In an estimated way

By the method of using cognitive links

Ethnography

Instead of using structured questions, it uses a series of questioning strategies. A strategy is chosen according to the direction of the conversation. Also, the interview itself may be done anywhere, and the topic may be cooking, shopping, or sharing a drink.

Quantitative research

Measuring brand strength:

Brand prominence and awareness (diagnostic awareness or recall): Name all the brands of a product group that you remember and record the order in which you remember them.

Brand prominence is important because the brands that come to our mind are usually the ones that we buy the most.

Brand preference

Preferably, brands that are more preferred will have stronger brand equity than those that are less preferred.

Price elasticity

To what extent can consumers accept a price increase without switching to another brand?

High elasticity: How much will the sales increase when the price goes down?

Bottom elasticity: As the prices increase, how much will the sales decrease?

These two elasticities are independent of each other.