Mastering Brand Development
How Marketing Pros Track Progress in Consumer Goods
Introduction
As marketers, we are familiar with the ongoing debate about the dichotomy between performance and brand building. While both are important, the main argument of performance marketing supporters is the measurability of marketing efforts. This argument hinges on the belief that performance marketing offers immediate, quantifiable results, such as clicks, conversions, and return on ad spend (ROAS), making it easier to justify the investment.
There is a myth that brand building has no measurable KPIs, but this couldn't be further from the truth. Marketing professionals measure brand-building efforts, gaining precise insights into brand equity and loyalty by tracking awareness, usage, purchase intent, and category performance attributes. Unlike performance marketing, brand building often requires a long-term perspective, recognizing that the benefits accrue over time and are reflected in sustained consumer preference and loyalty.
The Myth of Unmeasurable Brand Building
One of the most persistent myths in marketing is that brand building lacks measurable KPIs. This misconception arises because the results of brand-building activities take time to be apparent. Unlike performance marketing, where results can be seen almost instantaneously, brand building takes time to manifest in consumer behavior and perception. However, brand-building efforts are still measurable.
Marketing professionals employ various tools and techniques to measure the effectiveness of brand-building campaigns. These include tracking brand awareness, usage, purchase intent, and category performance attributes. For instance, brand awareness can be measured through surveys that assess how familiar consumers are with a brand and its products. Usage and purchase intent can be gauged through consumer panels and purchase tracking studies, which provide insights into how often consumers buy a product and their likelihood of purchasing it.
The Catch: Time Lag in Brand Building
So, where is the catch? There is a lag between effort and result, which needs to be trackable after a simple exposure to advertising. The attribution model is not measured in days or weeks. This lag, however, is not a hindrance but a necessary part of the process. It's a reminder that brand building is a journey that requires patience and persistence. This time lag is due to the nature of brand building, which involves creating and reinforcing positive associations with the brand in consumers' minds. These associations influence purchasing decisions over the long term, resulting in sustained brand loyalty and preference.
Advertising: The Cornerstone of Brand Building
Advertising is the cornerstone of brand building in consumer goods. It is the most straightforward and effective way to build brand awareness. However, while awareness can be achieved through a good investment in Above The Line advertising, the brand attributes take a while to emerge. ATL advertising, which includes television, radio, and print ads, is essential for reaching a broad audience and establishing brand recognition. However, the more profound attributes of the brand, such as its personality, values, and unique selling propositions, take time to resonate with consumers. This process of resonance is what ultimately builds brand equity.
Example: Long-lasting Colors in Laundry Detergents
I recall a brand equity monitor on laundry detergents, where a consumer's verbatim response to a detergent ad was: "She is saying she has a red skirt and a red top. Boyfriend bought it for her. The color lasted longer than the boyfriend did."
This consumer perceived and verbalized the critical attribute of the product benefit: long-lasting colors. The seed was planted, but the journey toward brand ownership of the long-lasting color performance was only beginning. This example reminds us that brand building is a long-term commitment, and the journey toward brand ownership is as crucial as the destination.
In another test, a consumer's verbatim was: "She sits there. There is a family of two children. They say something about putting the rugby clothes in the washing machine."
On the positive side, the context for the heavy usage of the laundry detergent was there, as one can understand that the mother sitting means she is not worried about the performance. But still, the verbatim does not say anything about the brand's performance or promise. It will, in time, but after a long journey.
What Do Pros Measure?
Brand equity can be measured using various tools such as Brand Equity Monitor, Brand Research, or Brand Diagnostic. These tools focus on several essential aspects critical to understanding and enhancing brand performance in the market. The primary focus areas include brand awareness, equity, and imagery, tracking both unaided and prompted advertisement awareness. They also examine consumer attitudes toward brands, purchase intent, and category performance attributes.
A holistic tool designed to measure and track brand equity continuously operates through regularly scheduled consumer interviews conducted throughout the year, integrating the data into a comprehensive database. The system combines consumer data from customized tracking studies with key marketing variables, providing a robust framework for understanding brand performance. Key measures included in this tool are:
Brand Awareness: Knowledge of the brand and its advertising.
Perceived Quality/Esteem: Product ratings and brand disposition.
Brand Differentiation: Image and personality of the brand.
Brand Loyalty: Consumer loyalty and repeat purchase behavior.
Advertising Inputs: Inputs such as Gross Rating Points (GRPs) to understand the impact of advertising efforts.
Price Data: Pricing information to evaluate competitive positioning.
Sales Data: Sales figures to measure market performance.
Market Events: Information on competitive activities and market conditions.
Economic Indicators: Data such as consumer confidence levels.
Public Relations and Editorial Comment: Analysis of public and media perception.
This approach ensures ongoing monitoring and facilitates expert interpretation by incorporating these various data sources. The goal is to offer a detailed, continuous view of how brand equity evolves, enabling more informed and strategic marketing decisions.
Benefits of Tracking Brand Equity
Tracking brand equity provides numerous benefits that enhance strategic brand management. It offers a continuous view of how brand equity evolves, enabling more informed and strategic marketing decisions. This includes in-depth insights into brand performance, strategic guidance for resource allocation, and market responsiveness to changes in brand perception.
In-depth Insights
Measuring variables such as brand awareness, perceived quality, and consumer loyalty provides a detailed understanding of brand performance. These insights help marketers identify strengths and areas for improvement, guiding more effective marketing strategies. This in-depth understanding of brand performance makes marketers feel knowledgeable and well-informed, enabling them to make strategic decisions. For example, if a brand tracking study reveals that consumers perceive a product as high quality but must be aware of recent advertising campaigns, marketers can adjust their media strategy to increase ad visibility.
Strategic Guidance
Brand equity tracking data offers valuable information for strategic planning. By understanding how different aspects of brand performance evolve, marketers can make more informed decisions about where to allocate resources. This strategic guidance empowers marketers to make decisions that can significantly impact brand performance. For instance, if brand differentiation scores are low, a company might invest in creative campaigns that highlight the unique features of its product.
Market Responsiveness
Continuous tracking enables brands to respond quickly to changing market conditions. By monitoring consumer attitudes and market events in real-time, brands can adapt their strategies to stay relevant and competitive. This agility is critical in industries where consumer preferences can shift rapidly due to new trends or technological advancements.
Consumer Understanding
Insights into consumer attitudes and behaviors help marketers better tailor products and marketing messages to meet consumer needs. By understanding what consumers value most about a brand, companies can develop products and campaigns that resonate more deeply with their target audience. For example, if consumers desire more eco-friendly packaging, a brand can respond by introducing sustainable packaging options.
Challenges of Tracking Brand Equity
While tracking brand equity offers significant advantages, it also presents challenges that need to be managed effectively:
Resource Intensive
Comprehensive brand equity research requires significant time, effort, and financial investment. This includes designing surveys, conducting interviews, and analyzing data. For smaller companies with limited resources, the cost of continuous tracking can be prohibitive. However, the long-term benefits often justify the investment, as the insights gained can lead to more effective and efficient marketing strategies.
Complex Analysis
Interpreting the data from brand equity studies can be complex, requiring skilled analysts to derive meaningful insights. The data must be carefully analyzed to understand the nuances of consumer perceptions and behaviors. This complexity necessitates a high level of market research and data analysis expertise, which may require additional training or hiring specialized staff.
Lag in Data
Despite continuous tracking, there can be a lag in data collection and analysis, potentially delaying actionable insights. This lag can be challenging in fast-moving markets where quick decisions are necessary. To mitigate this, companies can use a combination of long-term tracking studies and shorter, more immediate surveys to capture real-time consumer feedback.
Conclusion
Brand building and performance marketing are essential components of a successful marketing strategy. While performance marketing offers immediate, measurable results, brand building provides long-term value that sustains consumer preference and loyalty. By employing comprehensive brand equity tracking methods, marketers can gain deep insights into their brand's performance, guiding strategic decisions that enhance brand equity and drive long-term success. Despite the challenges associated with tracking brand equity, the benefits of in-depth insights, strategic guidance, market responsiveness, and consumer understanding make it a worthwhile investment for any brand committed to long-term growth and sustainability.