Keller's Brand Value Chain

Topics: Brand, Brand equity, Brand management Pages: 4 (1484 words) Published: December 25, 2010
The Brand Value Chain(BVC) is a structured approach to assessing the sorces and outcomes of brand equity and the manner by which marketing activities create brand value. It provides insights to support the various decision makers in the company and stresses that every member of the company contribute to this branding effort. It believes that the value of rand ultimately resides with customers. There are several steps to this when we look at this value creation process. * Step I) Firm invests in a marketing program targeting actual or potential customers * Step II) The associated marketing activity then affects the customer mind-set –what the customers know and feel about the brand. * Step III) This produces the brand’s performance in the marketplace – how much and when customers purchase, the price that they pay and so forth. * Step IV) The investors considers this market performance and other factors to arrive at an assessment of shareholder value in general and a value of the brand. * This model also assumes that there are a number of linking factors that intervene between these stages. These linking factors determine the extent to which value created at one stage transfers or “multiplies” to the next stage. * The three stages of multipliers moderates transfer between the marketing program and the three value stages: the program quality multiplier, the marketplace condition multiplier and the investment sentiment multiplier. Step I) Marketing Program Investment

Firm invests in a marketing program targeting actual or potential customers. This can be intentional or unintentional. It is outlined by many activities such as product research, development, design, trade or intermediary support; marketing comm incl advertising, promotion, sponsorship, direct and interactive marketing, personal seling, publicity and personal relations and employee training. Big not always good. Multiplier I) Program Quality Multiplier

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