Question

How brand equity could be built for a new electronic car considering the four levels: identity, meaning, response, and relationship, and the six building blocks: salience, performance, imagery, judgement, feelings and resonance of the CBBE model. 

Answer 1

Brand equity is basically the value premium that your brand name can earn for your company. A company can build its brand equity by giving it a recognizable name, making it at superior quality and making the brand a reliable one for the customers.

Now let’s have a look into how the brand equity can be built for a new electronic car considering the four levels of this with respect to the marketing aspect;

1. Identity: Before launching your product in the market, you should create or build an awareness of the product. Here the basic intention of any company should be to make the prospective customers see you product in the way you intend. Thus, you should have a base marketing plan where the brand comes out as you made it or wanted me to be launched.

Tesla is one such brand which has been successful in displaying their product in the way they had intended.

2. Meaning: Through this the company should market their brand and product in such a manner that it shouts out the meaning of the product they are marketing. This means the image of the product and its performance. AS the company wants to market and develop the brand equity for an electric car which is proven to be environment friendly, should actually be displayed to show off this meaning. Here the company can adopt target marketing/word of mouth/direct customer experience.

3. Response: Response for a product is created or developed from the customers in the form of their judgments or feelings. Judgments are basically formed from the credibility, the relevance the product have over its customers and the quality it have. But feelings arise from the security, fun, and the societal status the product displays.

So when choosing a marketing plan for the product it is important that it is promoted in such a manner that it show offs the possible societal status and credibility. It should also affirm them about the fun and excitement it will bring in each time you get into the car and take it or ride it.

4. Relationship: Marketing is another medium through which the company can build relationship with their customers and prospective customers. This will help the company build the brand equity. When there is a deeper relationship formed, there will a psychological bond with your brand. And eventually your customers will even form a community which will again build the brand equity.

Now let’s look into the six building blocks;

- Salience: This is the identity of the brand and how your brand is noticeable or important. This basically distinguishes your brand from the other brands or competitors. The rest of the blocks are basically depending on how well this is build.

- Performance: Meaning of the brand with respect to the reliability, durability, the price, customer level that the company can provide and the satisfaction derived by the customer. When the brand performance is good or the best then it will be accepted and rated positive by the customers. This positive response of the customers can be used by the company as a marketing technique.

- Imagery: This is also meaning of the brand but with respect to the social and psychological needs of the customers. This maybe the social status or any such psychological requirements. This may also be an environment friendly or supportive product.

- Judgments: This is the response that the customers develop towards the brand through its marketing. This may be regarding the quality/credibility/superiority of the products.

- Feelings: While this is the fun/excitement/security that the customers get from the product.

- Resonance: This is the most important block in this CBBE model. This is the relationship that the customers and the company build and retain. Brand loyalty programme is something that can be formed using the loyal customers and market the same which is now a new and credible social program.