Page 108 - MYM 2016

Building Trustworthy Brand Value
a new refrigerator was sold featuring its special
compartment for vegetables, or a chocolate bar was
promoted as having 20% more“nuts. Brand value is led to customers assessing a brand’s value
was represented as features for the price paid. Over time, we learned that customers sought
based on their perception of the total brand expe- rience – TBE (functional, emotional and social
products services that
had the right features, but they asked, “which brand is best for my individual needs?” Needs-based mar- keting became a marketing standard.
Customers looked for
brands that not only deliv-
ered the desired functional
bene ts but also made them feel good about the choices they made. e value equation became functions and emotional bene ts for the price paid. Money is not the only cost that people consider when evaluating value. Time is also important. Over the years, customers increasingly view time as precious as money. Is it worth the money and is it worth the time?
Total brand experience vs. Total brand cost
Consumers view brands as comprehensive, integrated, multidimensional experiences. e total brand experience is the combination of functional, emotional and social bene ts. Social bene ts are not just about sharing and belonging but also about what sort of image the brand helps the customer convey. Personal, visible social status can be a sig- ni cant driver of purchase.
Customers say they want more
choice. Market segmentation and
increased fractionation have led to an overcomplicated world of choices. With
multiple choices, decision-making
becomes a tremendous e ort. Using a
product or service should be easy. You
could have all the time in the world, and yet it may take too much e ort to gure out how to choose the right o er for your needs. Choosing how to get service, how to use online ordering, or how to interpret a product label should not take excessive e ort.
bene ts) relative to the total brand costs – TBC (money, time and e ort).
Trust is a value Multiplier
ere is a very important factor that is in uencing the brand value equation. at
factor is trust. Trust – in institutions such as gov- ernments, education, religions, media, businesses, and brands – is in decline. Trust is under attack.
We live in an uncertain world. Yet as humans, we seek touchstones of trust. Trusted relationships are at the heart of how we live, how we grow a society, and how we grow a business. For businesses, loss
of trust a ects market share, brand perception, and pro tability. For enduring brand value to exist, trust is a must.
Trust is an increasingly important factor a ect- ing customer-perceived value. e new equation of customer-perceived value is total brand experience (TBE) relative to total experience costs (TBC) all multiplied by trust. We call this the new Trust- worthy Brand ValueTM equation.
fig. 1: the trustworthy brand ValueTM equation
If trust in the brand is high, the perceived brand value is increased. If trust in the brand is low, the perceived brand value is decreased. If there is no trust in the brand, then it does not matter what the brand experience is relative to the costs: any- thing multiplied by zero is zero.
108 | MINd YOUr MarkETING OCTOBEr 2016
the total brand
experience is the combination of
functional, emotional and social bene ts.
Make it easy to choose and easy to use.