UNIT:1 BRAND MANAGEMENT

INTRODUCTION:

WHAT IS BRAND?
A brand is the combination of properties within and outside a product which gives an identity to
the generic product. It cannot be separated from the product.

Brands are different from products in a way that brands are “what the consumers buy”, while
products are “what concern/companies make”. Brand is an accumulation of emotional and
functional associations. Brand is a promise that the product will perform as per customer’s
expectations. It shapes customer’s expectations about the product. Brands usually have a
trademark which protects them from use by others. A brand gives particular information about
the organization, good or service, differentiating it from others in marketplace. Brand carries an
assurance about the characteristics that make the product or service unique. A strong brand is a
means of making people aware of what the company represents and what are it’s offerings.

NOW, WHAT IS BRAND MANAGEMENT:

Brand management begins with having a thorough knowledge of the term “brand”. It
includes developing a promise, making that promise and maintaining it. It means defining the
brand, positioning the brand, and delivering the brand. Brand management is nothing but an art
of creating and sustaining the brand. Branding makes customers committed to your business. A
strong brand differentiates your products from the competitors. It gives a quality image to your
business.

Brand management includes managing the tangible and intangible characteristics of

brand. In case of product brands, the tangibles include the product itself, price, packaging, etc.
While in case of service brands, the tangibles include the customers’ experience. The
intangibles include emotional connections with the product / service

WHAT IS THE CONCEPT OF BRAND?.

A brand concept is the general idea or abstract meaning behind a brand. A

brand's concept is used to give consistency to a brand's identity. It can be
described as the first thing you want to pop into your customer's head when they
think of your brand.
Following are the important brand concept:-
 Brand Name:

The part of the brand which gives it a spoken identity. Just like a person’s name.

Brand Attributes:

The characteristics of a brand. The core values of the brand. To be a

strong brand the brand should have some characteristics (attributes)
like relevancy, consistency, appeal, sustainable, credibility, etc.

Brand Identity:

How an organization feels of its brand. It’s basically an image of the

brand from the company’s point of view. That is, how it wants the
customer to perceive its brand.

Brand Image:

The image of the brand in the customers’ mind. How they perceive the
brand.

Brand Personality:

Just like humans, brands have a way they speak and behave. Brand
personality is basically the human personality traits of the brand. E.g.
honest, caring, luxurious, etc.

Brand Positioning:

Where does the brand stand among the competition? Positioning is the
distinctive/unique position of the brand in the market/consumers’ mind.

SIGNIFICANCE OF BRANDING FOR CUSTOMERS AND

FIRMS
 Firstly, we will see the significance of branding for
customers:
The most powerful brands don’t come from marketing, but from the experience of
customers. Customers requires branding as it helps them to differentiate a
product from the thousands available in the market. The customer are so
overwhelmed by the variety of products available to them that marketing is the
right choice on the basis of quality,price, stylishness became different.

There are the following reasons that why brandin g is important for customers:;

Brands provide peace of mind:

Consumers want comfort, happiness, and satisfaction in their lives, and they get it in
part through the products they buy. If the brands they use consistently deliver a
positive experience, consumers form an opinion that the brand is trustworthy, which
gives them peace of mind when buying.

Brands save decision-making time:

So you are in the market for a new HDTV and decide to search Amazon. You type in
“HDTV” and get 101,685 results. How do you cull the list down to a manageable
number of choices? You choose a brand. Type in “Samsung HDTV,” and you reduce
your choices to 1,319. Picking a brand helps reduce the clutter, making it easier to
find what you are looking for.

Brands create difference:

Any grocery store aisle has more product options than anyone can reasonably consider
purchasing. What allows us to select one peanut butter brand over another or over a
generic product? Branding helps define—in an instant, with a minimum of thought—
what makes your product different and more desirable than comparable products.

Brands provide safety:

People, by nature, generally avoid risk and seek safety. Imagine you’re on a business
trip in an unfamiliar city, and you need to pick a restaurant for dinner. You’re most
likely to pick a national restaurant brand over a local one because you’re familiar with
the national brand. It’s the safe and predictable choice because you know what to
expect. Brands offer safety and reduce the risk of disappointment.
 Brands express who we are:
The brands we use make a statement about who we are and who we want to be.
People become emotionally attached to the brands they use and view them as part of
their self-image. Apple’s classic “I’m a PC / I’m a Mac” campaign shows how brands
can reflect the personalities and self-perceptions of their users.

NOW,SIGNIFICANCE OF BRANDING FOR FIRMS

Branding is how customers perceive you and the blueprint of the business. May your brand be
the symbol of happiness, comfort, loyalty and lasting impressions. firms branding usually
begins with a new company logo. Quite often,firms don't realize the importance of
properly branding their firms.

Everything we know about every product we use is because of branding. It is the link
that connects the company to the customer and vice versa.

These are the following reasons why branding is important to fiems:

United:
Branding links your name, logo, online presence, product/services and appeal to
the masses. Make marketing skills consistent and the content the same across
all channels. This brings a united and clear message to customers, future
partnerships and their competitors.

Asset:

A brand is an asset. What you present to the public is a huge chunk of your

business. The worth is just as much as revenue and sales. A lot is at stake;

finances, creativity and time is on the line. Branding will make the difference

between revenue/sales and debt/liquidation.

 Sales:
Speaking of sales, branding will create sales and revenue for your
business. You will make money based on how the branding
marketing strategies work out. Customers will be tempted to test
you out, and your results will determine if you make more sales.

Deliverance:

Branding is a proclamation. You hereby state that you will deliver on your should

be spread throughout the organization too. Otherwise the company will be

disconnected and customers will be confused and grow distant. If you are not

willing to make promises you can't keep, don't state it on your brand.

Loyalty:

A good branding will create customer loyalty. Loyal customers will continue to

support you in good and bad times. They will spread a positive message to

people they know. Their influence will introduce new people to your company.

BRANDING CHALLENGES AND OPPORTUNITIES:

Brands build their strength by providing customers consistently superior
product and service experiences. A strong brand is a promise or bond
with customers. In return for their loyalty, customers expect the firm to
satisfy their needs better than any other competitors.

Brands will always be important given their fundamental purpose – to

identify and differentiate products and services. Good brand makes
people’s lives a little easier and better. People are loyal to brands that
satisfy their expectations and deliver on its brand promise. The
predictably good performance of a strong brand is something that
consumer will always value.

The challenges to brands:

1. The shift from strategy to tactics: –

With the increasing pressure to generate ever-improving profitability, it is often considered a

luxury for managers to develop long-term strategic plans. This is further exacerbated by short-
term goal setting, which is frequently designed primarily for the convenience of the financial
community.

2. The shift from advertising to promotions: –

As a consequence of the increasing pressure on brand manager to achieve short-term goals,

there is a temptation to cut back on advertising support, since it is viewed as a long-term brand-
building investment, in favour of promotions which generate much quicker short-term results.

3. On-Line shopping: –

The Internet is facilitating on-line shopping. On-line shopping is different from

traditional mail order because:

• Brands are available all the time and from all over the world;

• Information and interactions are in real time;

• Consumers can choose between brands which meet their criteria, as a result of
selecting information which is in a much more convenient format for them, rather
than the standard catalogue format.

This poses threats to brands, some components of added value, agent or the retail
outlet which originally added value by matching consumers with suppliers, may be
eliminated.

4. Opportunities from technology: –

Brand marketers are now able to take advantage of technology to again a competitive
advantage through time. Technology is already reducing the lead time needed to respond rapidly
to changing customers need and minimizing any delays in the supply chain.
 5. More sophisticated buyers: –

In business-to-business marketing, there is already an emphasis on bringing together

individuals from different departments to evaluate suppliers’ new brands. As inter departmental
barriers break down even more, sellers are going to face increasingly sophisticated buyers who
are served by better information system enabling them to pay off brand suppliers against each
other.

CONCEPT OF BRAND EQUITY:

There is no universally accepted definition of brand equity. The term means different things for
different companies and products. However, there are several common characteristics of the many
definitions that are used today. From the following examples it is clear that brand equity is multi-
dimensional. There are several stakeholders concerned with brand equity, including the firm, the
consumer, the channel, and some would even argue the financial markets. But ultimately, it is the
consumer that is the most critical component in defining brand equity. Some researchers in the field
of marketing have defined brand equity as follows:

 Lance Leuthesser (1995) writes that “… brand equity represents the value (to a consumer) of a
product, above that which would result for an otherwise identical product without the brand’s
name. In other words, brand equity represents the degree to which a brand’s name alone
contributes value to the offering (again, from the perspective of the consumer).”
 The Marketing Science Institute (1988) defines brand equity as, “The set of associations and
behaviors on the part of the brand’s customers, channel members, and parent corporations that
permit the brand to earn greater volume or greater margins than it could without the brand name
and that gives the brand a strong, sustainable, and differentiated advantage over competitors.”

Importance of Brand Equity

Equity is important for the brand not only to increase its market share but also to increase its
valuation in the market.

 Asset
Brand equity is one of the most important intangible assets of the company and just like other
assets, this too can be sold, licensed or leased to others.

 Price Premium
A brand having a positive brand equity can charge more for its product than the actual market
price.
  Increases Market Share
A positive brand equity often results in more loyal customers who prefer one specific brand over
others and in-turn increases its share in the market.

Components of Brand Equity:

Brand awareness

Brand association

Brand loyalty

Brand preference

Brand experience

BRAND EQUITY

COST-BASED PRICE-BASED CUSTOMER-BASED

Historical cost price premium brand knowledge

Replacement cost equalization price attribute rating

Market value method indifferent price blind test

Discounted cash flow method

Brand contribution method

1. Historical Cost Method:
This represents the money that has been spent on the brand to date.
Say Rs. 150 million have been expended in creating a brand ‘X’ for a
particular product. The value at which the brand can be sold to
another firm should be Rs. 150 million. It is quite appealing on
intuitive grounds.

2. Replacement Cost:
In 1997 Colgate had a turnover of Rs. 6810 million with a gross profit
of Rs. 146 crores or 1460 million rupees, reached 3 lakh retailers
directly enjoying top rank so far as consumer awareness ranking by
A.M. magazine of 1997 November. This is what the calculation of cost
to create the brand with similar indicators such is turnover,
profitability distribution reach, brand loyalty and so on.

The marketing experts are of the opinion that to launch a product with
national brand will be around 50 million rupees. Add to this the
production, distribution and other marketing underfoot costs.

A moderate and simple calculation can demonstrate this figure. Take

the arch rival brand of Colgate namely Close-up of H.L.L. In case of
Close-up-Rs. 2000 million was spent cumulatively on production and
marketing over the years to achieve its present position.

To this, add amount for brand loyalty and distribution equity it

commands. Let us take that HLL has spent another 600 million
rupees. Speaking alternatively the brand value of Close up is 2600
million rupees.
That is replacement cost is:
RC = LC + PO + AO + SDO + BP

Where

RC = Replacement Cost

LC = Launch Cost

ADVERTISEMENTS:

PO = Production Overheads

AO = Administrator Overheads

SDO = Selling and Distribution Overheads

BD = Brand Premium acquired over the year due of brand Loyalty.

This approach is better than historic cost approach as it considers

today’s costs than of past. However, procedurally it is not that simple
to calculate as it appears. It is not totally free from the weakness of
historic costs.

3. Market Value Method:

For a particular brand, brand value is obtained with the value that has
been realized in comparable current merger or acquisition. The data
available showing past and present position of some six companies
taken from Business World October 5-18-1994 which is much relevant
here.
past position:

company Taken year Price

overby
(millions)rs.
Ashok leyland hindujus 1987 780

Assam co.ltd Jay mehta 1991 600

Shaw wallence Mr.chabberia 1985 390

Bergers paints Vijay mallya 1988 360

Warner tea gs ruiaa 1983 130

Present position:

Brand Takenoverby Price in millions rs.

Everyday Mcleod russell 2,900

Kelvinator Whirl pool 2,500

Farex glucon-d Heinz 2,100

Thumps up,gold spot Coca-cola 1,800

chibaca colgate 1,310

It is evident from the information that Cibaca was taken over by

Colgate for Rs. 1310 million. If Cibacas equity as Rs. 1310 million, what
is the equity of Colgate? As Colgate has 17 times the turnover of
Cibaca, it works out Rs. 22270 million. Instead of taking as STR (Sales
Turn Over) one can take even EPS earnings per share as multiplier
where EPS = PAT + Number of Equity Shares.

4. Discounted Cash Flow Method:

This method consists of two elements namely:
(1) Estimating the cash-flows that will accrue in future and

(2) Conversion these cash flows to present value discounting at an

appropriate discount factor.

5. Brand Contribution Method:

This is an attempt to identify the ‘Brand’ contribution to the product.
This ‘Brand Contribution’ compares the profits earned by the brand
with profits earned by an unbranded or generic product in the same
category.

Accordingly, the difference between the two is treated as a measure of

brand value. Of course, this is not acceptable at which the brand can
be sold. It is because the buying will have to pay several times the
difference to the bought unbranded product.
It can be presented in the form of an equation as under:
BE = K x (Profits from the branded product-profits from the
unbranded product in the same category.)

Where:

BE = Brand Equity

K = Number of times the difference, let us take a case of shoes

manufactured by unknown and the shoes bought or manufactured by
Bata Shoe Company. Say the sales of ‘Ambassador’ brand are Rs. 500
million and those of another unknown brand equal to that of
‘Ambassador’ are Rs. 400 million but profits are Rs. 100 million in
case of Bata While Rs. 50 million in case of unbranded product.

The ‘K’ factor is 8 times, then the Brand equity will be: 8x (Rs. 100
million-Rs. 50 million) = 8 (Rs. 50 million) = 400 million. This
method is more useful as the measure of the brand’s strength in the
market in which it operates.

B. Price Based Methods:

1. Price Premium Method:

A comparison made of the retail price of a ‘branded’ product with that
of unbranded product in the same category. The difference speaks of
“brand equity”. It also indicates “brand strength”.

It means that higher the retailer premium that a brand can charge,
greater is the equity of brand in the minds of a customer. Since price is
the parameter-the brand equity cannot be generally acceptable
concept.

In case of Colgate, we have “Colgate Dental Cream” which is largely

used and lowly priced as against “Colgate Total” which is very costly.
Even Amway dental cream “Glister” is very much higher than that of
Colgate Total. In case of “Balsaras “Babool” is deliberately priced lowly
as compared to “Promise” to enter the market to gain the ground. The
implication of this approach of brand equity is that of Low-brand
equity or zero brand equity in case of lowly priced branded and
unbranded products.

2. Market Share Equalisation Method:

Brand equity is arrived in case of this method in a wiser way if total

market sales for say dental cream say 57 percent is that of Colgate, 18
Promise, Babool 5 percent, Pepsodent say 10 percent.

These are not actual figures or the only brands. One can take different
figures and brands. To illustrate let say there are four brands priced
for a given quantity say of 100 gram tubes and the number of people
using taken out of hundred persons.

3. Price Premium at Indifference:

This is the method that attempts to compare the free prices of brands
at the point of indifference. Let us take two brands say Colgate and
Promise. To avoid duplicacy repeat same experiment that was tried in
market share equalisation method. Keep increasing the price of
Colgate from 26.50 to Rs. 27.00. Let us, on an average a customer
jumps from Colgate to Promise at Rs. 27.00.

Then the Brand equity of Colgate will be:

Similar methodology can be used to calculate the brand equity. This

method uses one of the brands as ‘anchor point’ to define brand
equity. It might so happen that some brands might have negative
equity. For instance, if an average customer jumps from Babool to
Promise at Rs. 17.00, the Brand Equity of Babool will be

BE = (RS. 17.00 / RS. 18.75 – 1) (100)

BE =Rs. 18.75 BE = 0.906 – 1 (100) BE = – 0.33

As concept of ‘equity’ is relative, it does not matter. Let us equalize

B.E. of Babool to zero and rearrange the result.

The rearranged set of facts will reveal:

It clearly demonstrates that Colgate has much higher Brand Equity

than Promise and Babool. Between Promise and Babool, the latter has
least equity.
C. Customer Based Brand Equity:
Customer based methods of Brand Equity are also developed by some
veterans. The heart of this approach is the customer’s knowledge
about the brand in spot light.

Brand Knowledge’ stands for the sum of brand awareness and brand
image. Each of the parameters can be measured on a 1-10 scale where
standard measures such as recall, associations or attitudes or users
image and so on.

A weighted total of these parameters will be the measure of brand

equity. The dimensions of Brand Knowledge can be presented in the
form of a chart as under for better understanding.

Brand Recall:
It can be better explained with a practical example. To have recall
score for a brand, certain questions are asked. There may be four or
five questions. Let us take bathing soap brand say “Mysore Sandal”.

One can ask say four questions regarding this soap:

1. What brand comes to your mind when I say toilet beauty soap?

2. Which brand comes to your mind when I say ‘lower price’.

3. Which brand comes to your mind when I say white, cream, and
pink?

4. The advertisement for which brand says “Do you now understand
why I buy this?
Let us turn to the answers of these in case of a customer. Remember
we are asking several customers from different parts of the country-
Urban, semi urban- rural-top class, middle class, poor class, educated,
uneducated, youngsters, and middle aged and old and so on. Say
answer in case first question is ‘Mysore Sandal’, then its Brand Recall
is high. Let us give 10 out of 10 points.

If the answer to second question is “Santoor”, then the score point can
be say 7 out of 10 points. If the answer to the third question is say,
‘Mysore Sandal’, the score point can be 6 out of 10. If the answer is a
correct recall-say ‘Santoor’-he can be given again say 5.

Then the scores are averaged for four questions. In this case, (10 + 7 +
6 + 5 + 4) the average score is 7. This is a measure of Brand Equity.
According to this method, the equity does not lie in the price at which
brand can be sold but in the mind of the customer.

Even if consideration obtained for selling a brand can be measured, it

is argued that this consideration itself depends on how many people
like the brand or its customer based brand equity.

2. Attribute-Oriented Approach:
Under this approach, the methodology is take the attributes of brands
in a particular product area. These attributes are rated in the range of
01 to 10 scales from consumers. The sum of the scores of each brand
reflects the Brand Equity of a given product.
Let us take the case of toilet soaps say at least 5 and decide the
attributes and get the score from consumers and total the score for
each brand to determine the Brand Equity. Even these absolute scores
can be expressed as a percentage.

In terms of absolute figures compared ‘Cinthol’ has Highest Brand

Equity and ‘Dettol’ has the lowest. Even if percentage is taken, the
same ranking will result. Though it gives weight-age to attributes, the
limitation of this method is that Brand Equity stands for more than
brand attributes.

3. Blind Test:
Blind test is a variation method of the earlier attribute. Under this
method clear distinction is drawn between subjective and objective
attributes. Accordingly Brand Equity is defined as the difference
between the overall performance of a brand and the sum of the scores
it gets on objective parameters.

Let us take the example of 100 CC mobiles say “Yamaha RX”, “TVS
Shaolin” and “Hero Honda-Splendour”.

Taking overall brand level, there is preference for one brand or the
other. Taking brand level score out of 100 points. A respondent gives
or respondents give the score when you ask the question a consumer”.
How much does this brand score on hundred according to you ?” Say
answer is- Yamaha 79, Shaolin 84 and Splendour 88. Let us turn now
to score when objective parameters are considered such as-fuel
consumption-that is so many kilometers per liter of petrol; Pick-up so
many Kmph in given time duration- Load carrying capacity-its
minimum and maximum.

Then there is need of conducting a blind test on these attributes for

the brands in question without revealing the brand name to the
customer.

If following are the average ratings taken from a sample of

300 respondents for each of the objective attributes on a 00
to 10 scale, the findings will be:

It means that subjective parameters show that Brand Equity is highest

for Splendour and lowest for Yamaha.

The basic problem is that of identifying the subjective and objective

parameters. It is much easier in case of say two wheelers and four
wheelers but not so easy in case of consumer non-durables like talc
powder, Shampoo, or say tooth paste and so on.
UNIT:-2

CUSTOMER BASED BRAND EQUITY

Sources of brand equity:

BRAND AWARENESS:

Brand awareness is the level of consumer consciousness of a company. It measures a

potential customer’s ability to not only recognize a brand image, but to also associate it
with a certain company’s product or service.

Brand awareness is best spread through both inbound and outbound marketing efforts.
When competition in an industry is high, brand awareness can be one of a business’s
greatest assets.

Brand awareness is the probability that consumers are familiar about the life and availability of

the product. It is the degree to which consumers precisely associate the brand with the specific

product. It is measured as ratio of niche market that has former knowledge of brand.

Why is brand awareness important in marketing?

Brand awareness is important when launching new products and services, and it drives
consumers' decisions when differentiating between competing companies. ...Brand
awareness is also very important to businesses that are marketing proactively through social
media sites.

With the vast amount of products options, having a differentiated message and an
audience that can distinguish a company’s brand from its competitors is crucial. It can
mean the difference between success and failure for a company.

Entire marketing campaigns can be constructed around promoting awareness of a

brand. Spreading brand awareness is especially important during a company’s first few
years, when they are trying to make a name for themselves.

When consumers are aware of the product a company offers, they will more likely go
straight to that company if they need that product, instead of researching other places
that they can acquire that product. Businesses with strong branding are viewed as
accepted by the market. Therefore, they are trusted more by consumers who are
looking to purchase a new product.
 BRAND IMAGE:

Brand Image is how customers think of a brand. It can be defined as the perception of the

brand in the minds of the customers. Brand image develops over time. The customers form an

image based on their interactions and experience with the brand. These interactions take place in
many forms and not necessarily involve the purchase or use of products and service.

A brand Image is the perception of the brand in the mind of the customer. It is an aggregate of
beliefs, ideas, and impressions that a customer holds regarding the brand.

Importance of Brand Image

Every Company strives to build a strong image as it helps in fulfilling their business motives. A
strong brand image has following advantages –

 More profits as new customers are attracted towards the brand.

 Easy to introduce new products under the same brand.
 Boosts the confidence of existing customers. Helps in retaining them.
 Better Business-Customer relationship.

While a company with a bad image may struggle to operate and might not be able to launch a
new product under the same brand.
KELLER’S CBBE MODEL

Keller's Brand Equity Model is also known as the Customer-Based Brand

Equity (CBBE) Model. Kevin Lane Keller, a marketing professor at the Tuck
School of Business at Dartmouth College, developed the model and published
it in his widely used textbook, "Strategic Brand Management."
The concept behind the Brand Equity Model is simple: in order to build a
strong brand, you must shape how customers think and feel about your
product. You have to build the right type of experiences around your brand, so
that customers have specific, positive thoughts, feelings, beliefs, opinions, and
perceptions about it.

When you have strong brand equity, your customers will buy more from you,
they'll recommend you to other people, they're more loyal, and you're less
likely to lose them to competitors.
Step 1: Brand Identity – Who Are You?
In this first step, your goal is to create "brand salience," or awareness – in
other words, you need to make sure that your brand stands out, and that
customers recognize it and are aware of it.

You're not just creating brand identity and awareness here; you're also trying
to ensure that brand perceptions are "correct" at key stages of the buying
process.

Step 2: Brand Meaning – What Are You?

Your goal in step two is to identify and communicate what your brand means,
and what it stands for. The two building blocks in this step are: "performance"
and "imagery."

"Performance" defines how well your product meets your customers' needs.
According to the model, performance consists of five categories: primary
characteristics and features; product reliability, durability, and serviceability;
service effectiveness, efficiency, and empathy; style and design; and price.

"Imagery" refers to how well your brand meets your customers' needs on a
social and psychological level. Your brand can meet these needs directly,
from a customer's own experiences with a product; or indirectly, with targeted
marketing, or with word of mouth.

A good example of brand meaning is Patagonia®. Patagonia makes high

quality outdoor clothing and equipment, much of which is made from recycled
materials.

Patagonia’s brand performance demonstrates its reliability and durability;

people know that their products are well designed and stylish, and that they
won't let them down. Patagonia’s brand imagery is enhanced by its
commitment to several environmental programs and social causes; and its
strong “reduce, reuse, recycle” values make customers feel good about
purchasing products from an organization with an environmental conscience.
Step 3: Brand Response – What Do I Think, or Feel,
About You?
Your customers' responses to your brand fall into two categories: "judgments"
and "feelings." These are the two building blocks in this step.

Your customers constantly make judgments about your brand and these fall
into four key categories:

 Quality: Customers judge a product or brand based on its actual and perceived
quality.
 Credibility: Customers judge credibility using three dimensions – expertise (which
includes innovation), trustworthiness, and likability.
 Consideration: Customers judge how relevant your product is to their unique
needs.
 Superiority: Customers assess how superior your brand is, compared with your
competitors' brands.
Customers also respond to your brand according to how it makes them feel.
Your brand can evoke feelings directly, but they also respond emotionally to
how a brand makes them feel about themselves. According to the model,
there are six positive brand feelings: warmth, fun, excitement, security, social
approval, and self-respect.

Step 4: Brand Resonance – How Much of a

Connection Would I Like to Have With You?
Brand "resonance" sits at the top of the brand equity pyramid because it's the
most difficult – and the most desirable – level to reach. You have achieved
brand resonance when your customers feel a deep, psychological bond with
your brand.

Keller breaks resonance down into four categories:

 Behavioral loyalty: This includes regular, repeat purchases.

 Attitudinal attachment: Your customers love your brand or your product, and they
see it as a special purchase.
 Sense of community: Your customers feel a sense of community with people
associated with the brand, including other consumers and company representatives.
 Active engagement: This is the strongest example of brand loyalty. Customers are
actively engaged with your brand, even when they are not purchasing it or
consuming it. This could include joining a club related to the brand; participating
in online chats, marketing rallies, or events; following your brand on social media;
or taking part in other, outside activities.