What is the brand equity pyramid, and why should retail marketers care?
Retail marketing revolves around connecting with the consumer and creating desire to draw in potential customers and convert them into leads and sales. Advertising showcases how a product addresses a problem the consumer has and how it can make their lives better. To do this well you need as much information as possible.
Analytical data and customer insights are valuable sources of information. In addition, brand equity plays a pivotal role in establishing what the key demographic is interested in and how the target audience perceives your business and products. That is why you need to know about the brand pyramid.
Keller's Brand Equity Model
The brand equity pyramid has many different names. Originally known as Keller's Brand Equity Model, it's also referred to as the Customer-Based Brand Equity (CBB) Model.
The creator of the equity pyramid, Lane Keller, created it while a professor at the Tuck School of Business at Dartmouth College and published it in the book: Strategic Brand Management.
Building a Strong Brand
The entire idea of using a brand equity model is to focus on how customers perceive a business. The only way a company (such as your own) has the ability to build a strong brand presence is to understand how consumers view the brand.
The pyramid comes in four steps. The top step and base are each made up of one block. The two middle steps are made of two steps each.
The base of the pyramid is referred to as "Salience." This is who you are as a company. However, it isn't how you perceive the business. It's how the consumers view your business. It can also be referred to as awareness. What makes your company stand out to the target audience?
The second step is performance and imagery. While the first step looked at "who are you," the second step looks at "what are you." Performance is how well your product or service addresses the needs of customers. Imagery is how your brand meets your customer's psychological level. What is the perceived notion the customer has of your product?
The third step is judgement and feeling. Judgement is in reference to the credibility and quality of your product while feeling as if your product is superior to other brands and just how relevant your product is to their needs.
Lastly, the top level is "Resonance." This means how likely will the customer come back to your brand. Each of these points provides important insights into not only your brand equity but how your marketing department can (and should) reach out to attract both current and prospective customers.
Reaching the consumer is job number one for the marketing department. With brand equity, it's possible to see exactly what a customer thinks of the company. If brand equity established the product as one, customers are less likely to share with friends and family. Marketing can change this mindset by offering reasons as to why the product is hip and deserves to be shared. If the company doesn't retain customers, marketing can establish new ways to convert shoppers into returning customers (possibly through reward programs or special discounts for returning shoppers). All of this information can come directly from brand equity.
Knowledge is power, so the more information you have access to the better and stronger you are. Keller's Brand Equity Model can help you gain a much more intimate understanding not only of your target audience but also how the audience views your business. Use this to adapt your marketing and ensure your advertising is more successful than ever before.