Brand Equity – RI QuadRant Segmentation
A Bias To Action
Our first concern when entering the equity debate is that its measure, however defined, has clear implications for marketing strategy: a bias to action.
What A Brand Is And Where It Is Going
We think about equity as a measure of baseline attractiveness – eliminating all the effects of marketing and distribution leaves us with the underlying desire a consumer has to buy one brand over another. And the strength of a brand for a consumer is determined by its history and the direction in which they see it moving.
The Key Is To Discover Why Equity And Purchasing Don’t Equate
Equity is not the same as purchasing. Marketing factors such as price, distribution, and brand attributes all play their part in affecting the linkage. We have found that investigating the interaction – the matching or, more often, mis-matching – between these two key measures provides compelling and actionable insights that marketers can act upon.
RI QuadRant Segmentation – Simply Graphed, Extraordinarily Compelling
The (deceptively) simple two-dimensional box below is an extraordinarily powerful way of understanding and affecting purchasing behaviour. Why are some people loyal purchasers and some not? Why do some people like the brand and buy it regularly while others who like it buy it rarely? We can answer these questions most effectively by profiling the boxes.
For example, if we want to understand why the people in the “latent loyal” group aren’t buying our brand, then we compare them with those in the “true loyal” group. Are they different people demographically? Do they have general behavioural differences in the category (perhaps shopping at different places) or are they heavier or lighter buyers? What are they buying most often and are there different reasons for different brands?
What Gets Measured Gets Managed – And Can Be Tracked
Our approach to brand equity not only provides action plans for marketers, it enables them to track their success over time. Our tracking presentations get great reviews for always delivering key marketing insights and clear, measurable action steps.
To learn more about our tools including Brand Equity – please contact Mary Logan. Phone 416 467 7101