Brand equity

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Brand Equity:

Brand Equity

What is a brand?:

What is a brand? A brand is a name, term, sign, symbol, design or a combination of the above to identify the goods or service of a seller and differentiate it from the rest of the competitors

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Name Term Symbol Design Combination Identifies product/service of seller and differentiates from competitors Sign

Cont… :

A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service It is the seller’s promise to deliver the same bundle of benefits/services consistently to buyers Cont …

Tangibles & Intangibles:

Eg . Product Packaging Labelling Attributes Functional benefits Tangibles & Intangibles Eg. Quality Emotional benefits Values Culture Image

Brand Building:

A brand is created by augmenting a core product with distinctive values that distinguish it from competition Brand building involves deep understanding of both functional and emotional values that customers use when choosing between brands. Brand Building

Factors of a Successful Brand Building:

Quality Positioning Repositioning Well balanced communication Being first Long-term perspective Internal marketing Factors of a Successful Brand Building

Brand equity:

The concept of brand equity originated in order to measure the financial worth of this significant, yet intangible entity Brand equity is the value and power of the brand that determines its worth Brand equity is the value of a brand that is well-known and conjures positive associations, which helps it remain relevant and competitive Brand equity

Determinants Brand Equity:

The price premium that the brand charges over unbranded products The price premium that the brand charges over unbranded products The share prices that the company commands in the market Returns to shareholders The image of the brand on various parameters Future earnings potential Determinants Brand Equity

brand equity elements:

brand equity elements

Brand Loyalty:

Brand loyalty—central construct in marketing It is a measure of the attachment that a customer has to a brand It reflects how likely a customer will switch to another brand, especially when that brand makes a change Brand Loyalty

Brand Awareness:

People will often buy a familiar brand because they are comfortable with the brand A recognized brand will thus often be selected over an unknown brand The awareness factor is particularly important in contexts in which the brand must first enter the consideration set Brand Awareness

Perceived Quality:

A brand will have associated with it a perception of overall quality not necessarily based on the knowl­edge of detailed specifications Perceived quality will directly influence purchase decisions and brand loyalty Perceived quality can be the basis for a brand extension Perceived Quality

Brand Association:

Anything that is connected to the customer’s memory about the brand is an association Customers form associations on the basis of quality perceptions If a brand is well positioned on a key attribute in the product class, competitors will find it hard to attack Brand Association

Other Proprietary Brand Assets:

Proprietary assets include patents, trademarks and channel relationships These assets are valuable as they prevent competitors from attacking the company and prevent the erosion of competitive advantages and loyal customer base These activities may enhance or diminish the brand value Other Proprietary Brand Assets

Keller's Brand Equity Model:

Keller's Brand Equity Model is also known as the Customer-Based Brand Equity (CBBE) Model This illustrates the four steps that you need to follow to build strong brand equity Keller's Brand Equity Model

Brand Identity – Who Are You?:

The goal is to create "brand salience," or awareness N eed to make sure that the brand stands out, and that customers recognize it and are aware of it Brand Identity – Who Are You?

Brand Meaning – What Are You?:

Identify and communicate what your brand means, and what it stands for The two building blocks in this step are: "performance" and "imagery’’ Performance consists of five categories are product reliability, durability, and serviceability; service effectiveness, efficiency, and empathy; style and design; and price Brand Meaning – What Are You?

Brand Response – What Do I Think, or Feel, About You?:

Judgments about your brand These fall into four key categories such as Quality, Credibility, Consideration, and Superiority Customers also respond to your brand according to how it makes them feel According to the model, there are six positive brand feelings: warmth, fun, excitement, security, social approval, and self-respect Brand Response – What Do I Think, or Feel, About You?

Brand Resonance:

Brand "resonance" sits at the top of the brand equity pyramid because it's the most difficult – and the most desirable – level to reach Keller breaks resonance down into four categories such as Behavioral loyalty, Attitudinal attachment, Sense of community and Active engagement Brand Resonance

BRAND ASSET VALUATOR MODEL:

There are four key components—or pillars—of brand equity, according to BAV: Differentiation measures the degree to which a brand is seen as different from others Relevance measures the breadth of a brand’s appeal Esteem measures how well the brand is regarded and respected BRAND ASSET VALUATOR MODEL

AAKER MODEL :

Former UC-Berkeley marketing professor David Aaker views brand equity as a set of five categories of brand assets and liabilities Brand loyalty Brand Awareness Perceived Quality Brand Associations Other proprietary assets such as patents, trademarks, and channel relationships AAKER MODEL

BRAND ELEMENT CHOICE CRITERIA:

Memorable Meaningful Transferable Adaptable Protectable BRAND ELEMENT CHOICE CRITERIA

BENEFITS OF BRAND EQUITY:

Strong brand names simplify the decision process and reduce risk. Brand names are used to maintain higher awareness of products. Company’s use brand equity to gain leverage when introducing new products. The brand name is often interpreted as an indicator of quality BENEFITS OF BRAND EQUITY

Cont…:

Strong brand equity insures that your products are considered by most buyers.. Higher brand name equity leads to greater loyalty from customers. Strong brand equity is the best defence against new products and new competitors. Cont…

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