U
I
I
C
I
M
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FXFPIITIV
F
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^ holistic , integrate d approac h t o understandin g th e valu e create d b y brands .
Accordin
g t o th e model , bran d valu e creatio n begin s wit h th e firm' s marketin g activity .
Thi
s influence s customer s who , i n turn , affec t ho w th e bran d perform s i n th e marketplac e an d i s ultimatel y value d b y th e financia l community .
Thre
e importan t multiplier s moderat e th e exten t o f transfe r betwee n thes e valu e stages : th e progra m qualit y multiplier , th e marketplac e condition s multiplier , an d th e investo r sentimen t multiplier . bran d i n term s o f ho w i t perform s i n th e marketplace—th e aggregat e o f individua l custome r action s regardin g quantit y pur - chase d an d th e pric e tlia t the y pay .
Finally
, tli e investmen t com - munit y consider s bran d performanc e an d othe r factors , suc h a s replacemen t cos t an d purchas e pric e i n acquisitions , i n term s o f thei r futur e prospect s
(growt
h rate ) t o arriv e a t ii n assessmen t o f shareholde r valu e i n genera l an d bran d valu e i n particular .
Th
e mode l als o assume s tha t a numbe r o f factor s interven e betwee n thes e stages
,
(Se e Exhibi t 1.
)
Tlies e linkin g factor s determin e ho w valu e create d a t on e stag e transfer s o r "multi
-
plies
"
t o th e nex t stage
.
Thre e set s o f multiplier s moderat e th e transfe r betwee n th e marketin g progra m an d th e subsequen t thre e valu e stages—th e progra m qualit y multiplier
,
th e mar
-
ketplac e condition s multiplier
,
an d th e investo r sentimen t multiplier
.
I n thi s discussion
,
w e provid e example s o f bot h positiv e an d negativ e multiplie r effect s an d dra w som e brand
-
in g implications
.
Marketin g Progra m Investmen t An y marketin g progra m investmen t tha t potentiall y ca n affec t bran d valu e development
,
eithe r intentionall y o r not
,
fall s int o thi s category
.
Som e o f th e bigge r marketin g expendi
-
ture s relat e t o produc t research
,
development
,
an d design
;
trad e o r intermediar y support
;
marketin g communication s (e.g.
,
advertising
,
promotion
,
sponsorship
,
direc t an d interac
-
tiv e marketing
,
persona l selling
,
publicity
,
an d publi c rela
-
tions)
;
an d employe e selection
,
training
,
an d support
.
Progra m Qualit y Multiplie r Th e amoun t o f financia l investmen t committe d t o th e mar
-
ketin g progra m doe s no t guarante e succes s i n term s o f bran d vdlut
'
creation
.
Th e abilit y o f tha t investmen t t o transfe r o r multiply furthe r dow n th e chai n wil l depen d o n qualitativ e aspect s o f th e marketin g progra m vi a th e progra m qualit y multiplier .
Tlier
e ar e
3
numbe r o f differen t mean s t o judg e th e qualit y o f a marketin g program .
Firs
t i s th e clarit y eviden t i n th e marketin g program .
Wil
l consumer s properl y interpre t an d evaluat e th e meanin g conveye d b y bran d marketing ?
Secon
d i s th e relevanc e o f th e marketin g progra m t o cus - tomers .
Wil
l consumer s fee l tha t th e bran d i s on e tha t shoul d receiv e seriou s consideration ?
Thir
d i s th e uniquenes s o f th e marketin g program , a s compare d t o thos e o f competitors .
Ho
w creativ e o r differentiatin g i s th e marketin g program ?
Fourt
h i s th e consistenc y an d integratio n i n th e marketin g program .
D
o al l aspect s o f th e marketin g progra m combin e t o creat e th e bigges t impac t wit h customers ?
Doe
s th e marketin g progra m relat e effectivel y t o pas t marketin g program s an d properl y balanc e continuit y an d change , evolvin g th e bran d forwar d i n th e righ t direction ?
No
t surprisingly , a well-integrate d marketin g progra m tha t ha s bee n carefull y designe d an d implemente d t o b e highl y rel
-
evan t an d uniqu e t o customer s i s likel y t o achiev e a greate r retur n o n investmen t fro m marketin g progra m expenditures .
Fo
r example , despit e bein g out-spen t b y suc h beverag e bran d giant s a s
Coca-Cola
,
Pepsi
, an d
Budweiser
, th e
Californi
a
Mil
k
Processo
r
Boar
d wa s abl e t o revers e a decades-lon g declin e i n consumptio n o f mil k i n Californi a partl y throug h thei r well
-
designe d "Go t Milk?
"
campaign
.
O n th e othe r hand
,
numer
-
ou s marketer s hav e foun d tha t expensiv e marketin g program s d o no t necessaril y transfe r t o sales
.
Fo r example
,
i n th e bever
-
ag e category
,
brand s suc h a s Michelob
,
Mille r Lite
,
an d 7
U
P hav e see n thei r sale s declin e despit e sizabl e marketin g sup - port , arguabl y becaus e o f poorl y targete d an d delivere d mar - ketin g campaigns .
Mor
e broadly , numerou s dot-com s succeed - e d i n burnin g a grea t dea l o f cas h throug h ill-advise d market
-
in g program s tha t faile d t o attrac t man y customers
.
Custome r Mindse t Th e custome r mindse t include s everythin g tha t exist s i n th e mind s o f customer s wit h respec t t o a bran d
(e.g.
, thoughts , feelings , experiences , images , perceptions , beliefs , an d atti - tudes) .
Marketin
g progra m investment s resul t i n a numbe r o f suc h differen t customer-relate d outcomes
.
I n wha t way s hav e customer s bee n change d a s a resul t o f th e marketin g pro - gram ?
Ho
w hav e thos e change s manifeste d themselve s i n wha t w e cal l th e customer mindset
?
Fiv e ke y dimension s hav e emerge d fro m prio r researc h a s particularl y importan t measure s o f th e customer mindset. Tli e firs t i s bran d awarenes s an d th e exten t t o whic h customer s recal l an d recogniz e th e bran d an d ca n identif y th e product s an d service s associate d wit h it
.
Th e secon d dimensio n i s bran d associations
,
whic h includ e th e strength
,
favorability
,
an d uniquenes s o f perceive d attribute s an d benefit s fo r th e brand
.
Bran d association s ofte n represen t ke y source s o f bran d value
,
a s the y ar e th e means b y whic h consumer s fee l brand s satisf y thei r needs .
Th
e thir d dimensio n i s bran d attitude s
a