9.6 Forms of Brand Development, Brand Loyalty, and Brand Metrics
3 min read•june 25, 2024
Brand development strategies are crucial for companies to grow and stay competitive. From brand extensions to , these tactics help businesses leverage existing and explore new opportunities. Understanding these strategies is key to successful brand management.
and metrics are essential for measuring a brand's success. The spectrum of loyalty ranges from basic recognition to unwavering insistence. Metrics like awareness, associations, and equity help companies gauge their brand's performance and make informed decisions.
Brand Development Strategies
Strategies for brand development
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- leverages an established brand name to introduce new products or enter new categories
- introduces new products within the same category (Coca-Cola introducing new flavors)
- enters a new product category using the same brand name (Nike expanding from shoes to apparel)
- Benefits of brand extension include reduced risk and costs for launching new products, increased and , and potential to attract new customers
- Co-branding partners with another brand to create a new product or service offering
- incorporates a well-known ingredient or component into a product (Intel processors in Dell computers)
- combines two or more brands to create a new product (Nike and Apple collaborating on Nike+ products)
- Benefits of co-branding include leveraging strengths and reputations of both brands, accessing new markets and customer segments, and sharing costs and risks associated with product development and marketing
Brand Identity and Positioning
- encompasses the visual and conceptual elements that represent a brand's values, personality, and promise to consumers
- refers to how a brand is perceived in the minds of consumers relative to competitors, influencing its unique value proposition
- is the overall perception and impression that consumers have of a brand based on their experiences and associations
- describes the structure and relationship between different brands within a company's portfolio
Brand Loyalty and Metrics
Spectrum of brand loyalty
- represents the lowest level of brand loyalty where consumers can identify a brand by its visual elements (logo, packaging)
- indicates a stronger level of brand awareness and association where consumers remember a brand when prompted with a product category or need (Kleenex for facial tissues)
- reflects positive brand perceptions and experiences where consumers actively choose a specific brand over competitors
- represents the highest level of brand loyalty and emotional connection where consumers are unwilling to accept substitutes and will go out of their way to purchase a specific brand (Apple, Harley-Davidson)
Metrics of brand equity
- Brand awareness measures the extent to which consumers recognize and recall a brand through surveys, focus groups, or online metrics (search volume, social media mentions)
- evaluate the strength, favorability, and uniqueness of the attributes and benefits consumers associate with a brand through consumer surveys and qualitative research
- Brand loyalty assesses the degree to which consumers consistently choose a brand over competitors through purchase frequency, customer retention rates, and (NPS)
- Brand equity represents the overall value of a brand, based on consumer perceptions, loyalty, and financial performance, calculated using models such as the (BAV) or
- Market share represents the percentage of total sales in a market captured by a specific brand, calculated as:
- measures the increase in a brand's sales revenue over a specific period, calculated as:
- is the process of determining the financial worth of a brand, considering factors such as brand strength, market position, and future earnings potential
- estimates the total value a customer brings to a brand over the entire relationship, helping to inform marketing and retention strategies
Key Terms to Review (25)
Brand Architecture: Brand architecture is the way a company structures and organizes its portfolio of brands to create clarity, synergy, and leverage for the overall brand ecosystem. It defines the relationship between the master brand, sub-brands, and individual product brands to establish a cohesive and strategic brand identity.
Brand Asset Valuator: The Brand Asset Valuator is a comprehensive framework developed by the global marketing research firm Young & Rubicam to assess the strength and value of a brand. It provides a holistic evaluation of a brand's performance across multiple dimensions, enabling organizations to make informed decisions about brand management and development.
Brand Associations: Brand associations are the thoughts, feelings, perceptions, images, experiences, beliefs, and attitudes that become linked to a brand in the minds of consumers. These associations help to differentiate a brand, provide value to the customer, and create a sense of brand loyalty.
Brand Awareness: Brand awareness refers to the extent to which a consumer can recognize or recall a particular brand and associate it with a specific product, service, or company. It is a fundamental aspect of branding that measures how well a brand is known and how easily it comes to mind for consumers when they are considering a purchase or making a decision in a particular product category.
Brand Equity: Brand equity refers to the value a brand has accumulated over time, which manifests in the way consumers think, feel, and behave towards the brand. It encompasses the positive associations, loyalty, and perceived quality that customers attribute to a brand, ultimately influencing their purchasing decisions and the brand's overall market performance.
Brand Extension: Brand extension is a marketing strategy where a company uses an established and successful brand name to introduce a new product or service that is related to, but different from, the original product. It allows companies to leverage the brand's equity, reputation, and customer loyalty to enter new product categories or markets.
Brand Identity: Brand identity refers to the unique set of characteristics, associations, and visual elements that define and distinguish a brand in the minds of consumers. It encompasses the tangible and intangible aspects that shape the brand's perception and help establish a distinct and recognizable presence in the marketplace.
Brand Image: Brand image refers to the set of beliefs, ideas, and impressions that a person holds about a particular brand. It encompasses the emotional and psychological associations that consumers have with a brand, which can influence their perceptions, attitudes, and behaviors towards that brand.
Brand Insistence: Brand insistence is a strong, unwavering preference for a specific brand over others, even in the face of alternatives. It reflects a deep-rooted loyalty and commitment to a particular brand, where consumers actively seek out and demand that brand over any other options.
Brand Loyalty: Brand loyalty refers to the deep commitment and preference a consumer has towards a particular brand, leading to consistent repurchasing of the brand's products or services over time. This strong attachment to a brand goes beyond just liking or preferring the brand, and is a critical factor in consumer markets and buying behavior, product positioning, branding strategies, and promotion mix elements.
Brand Positioning: Brand positioning refers to the process of establishing a distinct and desirable place for a brand in the minds of target consumers relative to competing brands. It involves strategically aligning a brand's unique attributes, benefits, and associations to create a distinctive and compelling brand image that resonates with the intended audience.
Brand Preference: Brand preference refers to a consumer's tendency to choose one brand over others within a product category, based on their perceptions, experiences, and emotional connections with the brand. It is a crucial factor in driving consumer behavior and brand loyalty.
Brand Recall: Brand recall refers to the ability of consumers to remember and retrieve a specific brand from their memory when prompted or given a relevant cue. It is a crucial measure of brand awareness and the strength of the brand's positioning in the minds of the target audience.
Brand Recognition: Brand recognition is the ability of a consumer to identify a particular brand or product by its distinctive characteristics, such as logo, packaging, or advertising. It represents the level of familiarity and awareness a consumer has with a brand, which can influence their purchasing decisions and brand loyalty.
Brand Valuation: Brand valuation is the process of estimating the monetary value of a brand, taking into account factors such as brand equity, market share, and future earning potential. It is a crucial metric for understanding a brand's worth and informing strategic decisions related to brand development, loyalty, and performance measurement.
Category Extension: Category extension refers to the process of a brand expanding its product offerings into new product categories or markets that are related to its core business. This strategy allows brands to leverage their existing brand equity and reputation to enter new areas and appeal to a broader customer base.
Co-Branding: Co-branding is a strategic marketing partnership where two or more distinct brands collaborate to create a new product or service. It involves the combined use of brand names, logos, and other brand elements to leverage the strengths and associations of the participating brands.
Composite Co-Branding: Composite co-branding is a strategic brand alliance where two or more distinct brands are combined to create a new, singular brand identity. This approach allows companies to leverage the equity and associations of multiple established brands to enhance product appeal, increase customer loyalty, and expand market reach.
Customer Lifetime Value: Customer lifetime value (CLV) is a metric that measures the total worth of a customer to a business over the entire duration of their relationship. It represents the net present value of the future cash flows expected from a customer, taking into account factors such as customer acquisition costs, revenue generated, and the likelihood of retention. CLV is a crucial concept in marketing, as it helps businesses understand the long-term value of their customers and make informed decisions about customer acquisition, retention, and resource allocation.
Ingredient Co-Branding: Ingredient co-branding is a strategic marketing approach where two or more brands collaborate and jointly promote their products or services. It involves the integration of a secondary brand or ingredient into the primary brand, creating a mutually beneficial relationship that enhances the perceived value and appeal of both brands to consumers.
Interbrand's Brand Strength Score: Interbrand's Brand Strength Score is a metric used to measure the overall strength and performance of a brand. It is a key component of Interbrand's brand valuation methodology, which aims to provide a comprehensive assessment of a brand's financial value and strategic importance to a business.
Line Extension: A line extension is a new product introduced by a company that falls under an existing brand name. It is a strategy used to leverage the equity and recognition of an established brand to introduce a new product variation or category within the same product line.
Market Share: Market share refers to the percentage of a company's sales or units in relation to the total sales or units in a given market. It is a key metric that indicates a company's competitive position and performance within its industry or market.
Net Promoter Score: The Net Promoter Score (NPS) is a customer loyalty metric that measures the willingness of customers to recommend a company's products or services to others. It is a widely used tool in customer relationship management (CRM) and marketing strategy development.
Sales Growth: Sales growth refers to the increase in a company's revenue or the total value of goods and services sold over a specific period. It is a crucial metric for measuring the success and expansion of a business, as it indicates the company's ability to generate more sales and attract more customers.