PRICE CREATING GROWTH WORKSHOPPERCEIVED QUALITYBRAND EQUITY=PROFIT $PROFIT $PROFIT $PROFIT $COST MANAGEMENTPROFIT $COST MANAGEMENTPROFIT $PROFIT $Fixed costs environmentGROWTH EQUATIONAll rights reserved, 2001CREATING GROWTH WORKSHOPFIXED COSTS ENVIRONMENTPROFIT = REVENUE - TOTAL COSTS (TC)TOTAL COSTS = FIXED COSTS (FC) + VARIABLE COSTS (VC) VARIABLE COSTS (VC) = DIRECT LABOUR MATERIAL PER UNIT OVERHEADS ADVERTISING R&DAll rights reserved, 2001CREATING GROWTH WORKSHOPFIXED COSTS ENVIRONMENTPROFIT = REVENUE - TOTAL COSTS (TC)TOTAL COSTS = FIXED COSTS (FC) REVENUEVOLUMEPRICEAll rights reserved, 2001CREATING GROWTH WORKSHOPPERCEIVED QUALITYCore Benefit or ServiceBrand NameCapabilitiesPackagingDesign & StylingQualityFeaturesPersonnelWarrantyInstallationCore productActual ProductAugmented ProductAfter sales supportCustomer ServiceDelivery & CreditAll rights reserved, 2001CREATING GROWTH WORKSHOPBRAND EQUITYBRAND EQUITYName SymbolBrand LoyaltyName AwarenessPerceived QualityBrand AssociationsOther Proprietary Brand AssetsProvides Value to Customer by enhancing customers Interpretation/Processing of information Confidence in the Purchase decision Use SatisfactionProvides Value to Firm by enhancing Efficiency and Effectiveness of marketing programs Brand Loyalty Prices/Margins Brand extensions Trade Leverage Competitive advantageAll rights reserved, 2001CREATING GROWTH WORKSHOPBRAND LOYALTYSwitchers/Price sensitive Indifferent - no brand loyaltySatisfied/ Habitual Buyer No reason to changeSatisfied Buyer with switching CostsLikes the Brandconsiders its a friendCommitted BuyerAll rights reserved, 2001CREATING GROWTH WORKSHOPBRAND AWARENESSUnaware of BrandBrand recognitionBrand recallTop of MindAll rights reserved, 2001CREATING GROWTH WORKSHOPVALUE OF BRAND AWARENESSBRAND AWARENESSAnchor to which other associations can be attachedFamiliarity - LikingSignal of substance / commitmentBrand to be consideredAll rights reserved, 2001CREATING GROWTH WORKSHOPBRAND ASSOCIATIONSHelp process/Retrieve InformationDifferentiate/positionReason-to-buyCreate positive attitudes/FeelingsTHE VALUE OF BRAND ASSOCIATIONSBasis for extensions All rights reserved, 2001CREATING GROWTH WORKSHOPBRAND REVITALISATIONIncreasing UsageFinding New Uses Entering New MarketsRepositioning the BrandAugmenting the Product/serviceObsoleting existing productsExtending the BrandREVITALISING THE BRANDAll rights reserved, 2001