BUS631 Study Guide

Unit 2: Consumer Choice: Loyalty, Preference and Brand Equity

2a. Analyze how to best position for brand equity

  • What is an example of brand equity?
  • How can a company position itself in terms of brand equity?
  • Why is it important to be concerned with brand equity?

Companies may position for brand equity in a variety of ways. Typically, brand equity begins with brand strategy and brand awareness, then a company attempts to differentiate their brand from others, and then build brand loyalty, which then creates brand equity. Brand equity may be determined by considering company value and assets, which are part of the financial component of any company.

Depending on how consumers spend on certain brands will create customer loyalty, and this will help to create brand value. What a brand is worth may be determined by its consumers and their loyalty to that brand. As brand equity grows, brand value may also rise. When a company is for sale, brand equity and value are considered to determine overall company value.

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2b. Evaluate the touchpoints along the consumer purchasing journey that lead to loyal consumer preference

  • What are brand ambassadors?
  • How can a brand build customer loyalty?
  • How do loyalty programs help to build a brand?

Companies may help to build their brand through a variety of ways. These might include brand ambassadors, loyalty programs, or using loyal customers to attract new customers. Brand ambassadors are paid to promote the brand, and these people or celebrities typically already have a following of people who listen to what they say.

Loyalty programs help to build consumer preference as a customer may return to make a purchase out of habit, knowing they may receive rewards for their purchase. Customers who repeatedly buy from a company or brand may tell others about that experience, and that also helps to build the brand. By developing these strong ties between the brand and consumer buying habits, a company can increase sales and consumer loyalty.

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2c. Analyze a gap analysis of the competitive landscape to understand brand growth opportunities

  • What is a gap analysis?
  • Why is it important to understand the competitive landscape for brand growth?
  • What are some brand growth opportunities?

A gap analysis occurs when a company compares brand performance with its desired brand performance. At times, the actual growth may exceed expectations, or it may be less than desired. By analyzing and performing a gap analysis to expand brand opportunities, a company may be able to better manage the expectations of those brands.

A brand growth strategy will help a company build that brand, and it should include a detailed plan about how to grow the brand and increase brand equity and market share. By reviewing the current competitive landscape for similar products and services, a company may be able to increase brand growth opportunities as well. As a brand manager, it is important to consider all growth opportunities to grow your brand.

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2d. Evaluate critical elements of consumer engagement and brand equity insights with the use of data analytics

  • What is consumer engagement, and how can it be used to increase brand equity?
  • How can you use data analytics to gain insight into brand performance?
  • What are some elements of consumer engagement, brand equity, and data analytics?

Consumer engagement can be increased as customers begin to buy a product or service, use a customer rewards loyalty program, or engage with other consumers about that product. One example of this would be a TikTok video that demonstrates the benefits of a product that meets a wide variety of consumer needs. Consumers may engage in conversations with others about that interaction.

Data analytics are extremely useful to any brand manager as they analyze where leads and direct purchases are coming from (what websites), how long those potential customers remain on the website, and what they click on. This data can be analyzed for future marketing purposes as brand managers determine where the bulk of their leads are coming from. This information can also be useful to determine consumer engagement and brand equity insights.

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2e. Analyze the marketing ROI (return on investment) and productivity of brands

  • What is marketing ROI, and how is it used in brand management?
  • Why is it important to understand ROI from a marketing perspective?
  • How can you use ROI information to better the brand?

Analyzing marketing ROI (return on investment) is an important tool to use when managing your brand. This is the amount of money you put into advertising and marketing the brand compared to sales. This information will show if a product or service is useful and effective and how the overall productivity is for that brand. By analyzing this type of financial information, you can better determine the overall health of the brand itself.

The more focused and targeted the marketing is for a particular brand, the higher the sales might be and the more profitable the brand. This helps to justify the marketing that is spent on a brand and may also allow for additional marketing if the initial promotions are successful. By generating additional sales, a company may decide to increase marketing for a brand or for products or services of that brand.

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Unit 2 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

  • brand ambassadors
  • brand equity
  • brand equity insights
  • brand growth strategy
  • consumer engagement
  • data analytics
  • gap analysis
  • loyalty programs
  • ROI (return on investment)