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CH 2 BM

Chapter 2 discusses Customer-Based Brand Equity (CBBE), emphasizing that brand value is derived from consumer perceptions and feelings. It outlines the benefits of strong brands, such as increased customer loyalty and easier product launches, and details brand knowledge components like brand awareness and brand image. Additionally, it covers brand positioning strategies, guidelines for effective positioning, and the concept of a brand mantra to encapsulate the brand's essence.

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Iqra Ali
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8 views3 pages

CH 2 BM

Chapter 2 discusses Customer-Based Brand Equity (CBBE), emphasizing that brand value is derived from consumer perceptions and feelings. It outlines the benefits of strong brands, such as increased customer loyalty and easier product launches, and details brand knowledge components like brand awareness and brand image. Additionally, it covers brand positioning strategies, guidelines for effective positioning, and the concept of a brand mantra to encapsulate the brand's essence.

Uploaded by

Iqra Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Chapter 2 – Customer-Based Brand Equity & Brand Positioning (Simple Notes)

1. What is Customer-Based Brand Equity (CBBE)?

• CBBE means brand value comes from what people think and feel about a brand.

• A strong brand changes how people react to marketing.

• The more people know and like a brand, the stronger the brand equity.

2. Benefits of Strong Brands

• Better product image and customer loyalty.

• Less chance of losing customers to competitors.

• People still buy the brand even if the price goes up.

• Easier to launch new products and get support from retailers.

3. Brand Knowledge

• Brand knowledge = what customers remember and believe about a brand.

• It includes:

1. Brand Awareness – How easily people recognize or recall a brand.

2. Brand Image – What people think the brand stands for.

Brand Awareness Types

• Recognition – Know the brand when they see it.

• Recall – Can name the brand without seeing it.

Brand Image Elements

• Strong associations – Customers remember key things about the brand.

• Favorable associations – Positive feelings and thoughts.

• Unique associations – What makes the brand different.

4. Brand Positioning
• Positioning means placing the brand clearly in the minds of the target audience.

• It should show why the brand is special and how it is better than others.

Includes:

1. Target Market – Who the brand is for.

2. Competition – Who else is offering similar things.

3. Points of Difference (PODs) – What makes the brand unique.

4. Points of Parity (POPs) – What is similar to competitors to meet basic expectations.

5. Positioning Guidelines

• Show clearly which product category the brand belongs to.

• Make sure the PODs are desirable, believable, and unique.

• POPs and PODs should be balanced – cover must-haves and unique benefits.

• Update positioning when market changes or competition increases.

6. Straddle Position

• When a brand fits in two categories with different benefits.

• Helps appeal to a wider audience by combining strengths.

7. Updating Brand Positioning

• Not done often unless needed.

• Change if customer needs, market, or competition shifts.

• Laddering – Adding deeper meanings to the brand.

• Reacting – Responding to competitors’ moves.

8. What is a Brand Mantra?

• A short phrase (3–5 words) that describes the heart and soul of the brand.
• Helps guide marketing, product decisions, and brand tone.

• Example: Nike’s “Authentic Athletic Performance”.

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