“Customer Centered Brand Management” Based on the article By: Rust, Roland T., Zeithaml, Valarie A., Lemon, Katherine N.

11 03 2010

Chaco is just one of Wolverine's many shoe brands designed specifically for the "outdoorsy" customer segment

First we must know the difference between customer equity and brand equity (Customer Equity is what’s important.)

“Companies must focus on customer equity (the sum of the lifetime values of all the firm’s customers, across all the firm’s brands) rather than brand equity (the sum of customers assessments of a brand’s intangible qualities, positive or negative.)”

“It is important to remember that acting in the best interests of brand equity isn’t necessarily the same as acting in the best interests of customer equity.”

Next, we need to “Put brands in their place”

  • Brands need to be built around customer segments that are focused on customer needs.
  • Brands need to be created as narrow as possible.
  • Brand managers need to know their customers well enough to tell when it’s time to hand off customers. In extreme cases, a company might even encourage some customers to abandon a brand to which they are loyal if another brand will better cultivate the relationships and increase customer equity.”
  • Change how you measure brand equity.

Finally, “Overcome Your Blind Spot”

  • Customer Centered Brand Management requires the executive team to have a change in perspective.
  • Brands are only a means to an end, and the end is this: to create and cultivate profitable, long-term relationships with customers.”
Advertisements

Actions

Information

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




%d bloggers like this: