Lecture Marketing research (12th edition) - Chapter 24: Brand and customer metrics

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Marketing Research
Aaker, Kumar, 
Leone and Day 
Twelfth Edition
Instructor’s 


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Chapter Twenty­four
Brand And Customer Metrics

Marketing Research 12th Edition


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Competitive Advantage
Michael Porter’s Five Forces Model

Source: />Marketing Research 12th Edition


Assessing Competitive Advantage
Market­Based Assessment
Market­based

Process­based

Market share

Marketing skills audit

Recall share

Comparison of relative costs

Advertising share

Comparison of winning versus losing competitors

R&D share

Identifying high­leverage phenomena

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Marketing Research 12th Edition


Assessing Competitive Advantage
Process­Based Assessment

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Marketing Research 12th Edition


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Brand Equity
•

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Defined as a set of brand assets and liabilities linked to a 
brand, that add to or subtract from the value of a product 
or service to a company and/or its customers
The Assets can be grouped as
1.

Brand Loyalty

2.

Name Awareness

3.

Perceived Quality

4.

Brand Associations in addition to perceived quality

5.

Other Proprietary Brand Assets: patents, trademarks, channel 
relationships, etc.

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Brand Equity (Contd.)

Brand equity.
SOURCE: David A. Aaker, Managing Brand Equity. New York: The Free Press, 1994.
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Measuring Brand Equity
1.
2.
3.
4.
5.

Excess­Price Approach
Observation
Customer Research
Trade­off Analysis
Impact on Customer Evaluation

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Measuring Brand Equity (Contd.)

6.
7.
8.
9.
10.

Replacement Cost Approach
Stock Price Approach
Future Earnings Approach
Discounting the future profit stream
Applying an earnings multiplier

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Customer Satisfaction Research
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Customer satisfaction research should be done at planned 
intervals so as to track satisfaction over time
Measurement Process

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Define goals and specify how information will be used

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Discover what is important to customers and employees

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Measure critical needs

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Act on the information

▫

Measure performance over time

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Contemporary Applications of Marketing 
Intelligence
What Is Buyer­Centricity?
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Provide services that help customers make informed decisions 
on buying better and cheaper products more easily
Help buyers to buy rather than help sellers to sell
Help consumers maximize the efficiency, productivity, and 
marketable value of personal assets as money, time, 
information, attention and emotional commitment
Present offerings relevant to the buyer’s unique individual 
characteristics and that recognize what customers currently 
seek to achieve
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Who Gains from Buyer­Centricity?
In contrast to popular perceptions, buyer­centricity aids not only 
consumers but also sellers.

The advantages stem from a range of sources mentioned 
below:
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Growth Markets

•

Beyond Revenue Implications

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Fewer Bucks for More Bang

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Trust
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Maximizing Customer Profitability

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Maximizing Customer Profitability (Contd.)
CLV maximization cycle is comprised of the following 
steps:
1.
2.

3.

4.

5.

Customer Selection
Managing Loyalty and 
Profitability Simultaneously
Optimal Allocation of 
Resources
Pitching the Right Product to 
the Right Customer at the 
Right Time
Preventing Customer Attrition

6.

7.

8.
9.
10.

Managing Multi­Level 
Shoppers
Linking Investment in Branding 
to Customer Profitability.
Acquiring Profitable Customers
Referral Marketing Strategy.
The Future of Customer 
Management

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End of Chapter Twenty­four

Marketing Research 12th Edition