Page 278 - Marketing Management

CREATING BRAND EQUITY | CHAPTER 9 255

TABLE 9.3 The Myths and Realities of Brand Communities

Myth: Brand community is a marketing strategy. Reality: Brand community is a business strategy. The entire business model
must support the community brand.

Myth: Brand communities exist to serve the business. Reality: Brand communities exist to serve the people that comprise them. Brand
communities are a means to an end, not the ends themselves.
Myth: Build the brand, and the community will follow. Reality: Cultivate the community and the brand will grow; engineer the community
and the brand will be strong.
Myth: Brand communities should be love fests for Reality: Communities are inherently political and this reality must be confronted with
faithful brand advocates. honesty and authenticity head-on; smart companies embrace the conflicts that make
communities thrive.
Myth: Focus on opinion leaders to build a strong Reality: Strong communities take care of all of their members; everyone in the
community. community plays an important role.
Myth: Online social networks are the best way to Reality: Social networks are one community tool, but the tool is not the strategy.
build community.
Myth: Successful brand communities are tightly Reality: Control is an illusion; brand community success requires opening up
managed and controlled. and letting go; of and by the people, communities defy managerial control.

Sources: Susan Fournier and Lara Lee, The Seven Deadly Sins of Brand Community, Marketing Science Institute Special Report 08-208, 2008; Susan Fournier and Lara Lee, “Getting Brand Communities
Right,” Harvard Business Review, April 2009, pp. 105–11.

interviews with community members, the researchers found 12 value creation practices taking
place. They divided them into four categories—social networking, community engagement,
impression management, and brand use—summarized in Table 9.2.
Building a positive, productive brand community requires careful thought and implementation.
Branding experts Susan Fournier and Lara Lee have identified seven common myths about brand
communities and suggest the reality in each case (see Table 9.3).

Measuring Brand Equity

How do we measure brand equity? An indirect approach assesses potential sources of brand equity
49
by identifying and tracking consumer brand knowledge structures. A direct approach assesses the
actual impact of brand knowledge on consumer response to different aspects of the marketing.
“Marketing Insight: The Brand Value Chain” shows how to link the two approaches. 50

intermediary support; and marketing communications. Next, we assume
customers’ mind-sets, buying behavior, and response to price will change
as a result of the marketing program; the question is how. Finally, the
investment community will consider market performance, replacement
Marketin
Marketing InsightInsight cost, and purchase price in acquisitions (among other factors) to assess
g
shareholder value in general and the value of a brand in particular.
The model also assumes that three multipliers moderate the transfer
between the marketing program and the subsequent three value stages.
The Brand Value Chain • The program multiplier determines the marketing program’s ability
to affect the customer mind-set and is a function of the quality of
The brand value chain is a structured approach to assessing the the program investment.
sources and outcomes of brand equity and the way marketing activities • The customer multiplier determines the extent to which value cre-
create brand value (see Figure 9.6). It is based on several premises. ated in the minds of customers affects market performance. This
First, brand value creation begins when the firm targets actual or result depends on competitive superiority (how effective the quantity
potential customers by investing in a marketing program to develop the and quality of the marketing investment of other competing brands
brand, including product research, development, and design; trade or are), channel and other intermediary support (how much brand