Keller_SBM3_08.ppt

CHAPTER 8: DEVELOPING A BRAND EQUITY MEASUREMENT AND MANAGEMENT SYSTEM Kevin Lane Keller Tuck School of Business Dartmouth College The New Accountability Virtually every marketing dollar spent today must be justified as both effective and efficient in terms of “return of marketing investment” (ROMI). Some observers believe that up to 70% (or even more) of marketing expenditures may be devoted to programs and activities that cannot be linked to short-term incremental profits, but yet can be seen as improving brand equity. The Brand Value Chain Broader perspective than just the CBBE model The brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value. Value Stages Marketing program investment Any marketing program that can be attributed to brand value development Customer mindset In what way have customers been changed as a result of the marketing program? Market performance How do customers respond in the marketplace? Shareholder value Multipliers Program quality multiplier The ability of the marketing program to affect customer mindset Must be clear, relevant, distinct, and consistent Customer multiplier The extent to which value created in the minds of customers affects market performance It depends on factors such as competitive superiority, channel support, and customer size and profile Market multiplier The extent to which the value generated through brand market performance is manifested in shareholder value It depends on factors such as market dynamics, growth potential, risk profile, and brand contribution Brand Equity Measurement System A set of research procedures that is designed to provide timely, accurate, and actionable information for marketers so that they can make the best possible tactical decisions in the short run and strategic decisions in the long run Brand Equity Measurement System Conducting brand audits Developing tracking procedure