brand equity...... def n “brand equity is the totality of the brand's perception, including...
TRANSCRIPT
Brand Equity...... Defn
“Brand Equity is the totality of the brand's perception, including the relative quality of the products and services, financial performance, customer loyalty, satisfaction and overall esteem towards the brand.
Brand Equity relates to how the customers, consumers, employees and all the stake holders feel about the brand.”
.....................................Konapp (2007)
Brand Equity...... Defn
“ Brand equity is a set of brand assets and liabilities linked to a brand, it's name and symbol add to or subtract from the value provided by a product or service to a firm and / or to the firm's customers”
......................................Aaker (1991)
“Brand equity consists of differential attributes underpinning a brand which gives increased value to the firm's balance sheet”
............... Chernatony and McDonald
Brand Equity...... Defn
“ The Brand equity is the total accumulated value or worth of a brand; the tangible and intangible assets that the brand contributes to it's corporate parent, both financially and in terms of selling leverage”
....................................Upshaw
What is Brand Equity?What distinguishes a brand from its unbranded commodity counterpart and gives it equity is the sum total of consumers’ perceptions and feelings about the product’s attributes and how they perform, about the brand name and what it stands for, and about the company associated with the brand.
Source: Alvin A. Achenbaum, “The Mismanagement of Brand Equity, 1993
The Value of a Strong Brand
“Brand equity has just as much effect on stock price as do earnings.”
—David AakerProfessor of Marketing, EmeritusUniversity of California, Berkeley
Conceptualizing Brand Equity
Product
Brand Equity(+/- Surplus)
Worth of the brand
Customer behaviourDiscrimination and value
Perception / Knowledge Structure
Brand Communications & Contacts
Drive toward oragainst the brand
Brand EquityBrand Equity
Perceived Brand Quality
BrandAwareness• Brand Name• Symbols
BrandLoyalty
OtherProprietaryBrand Assets•Patents•Trademarks•Channel relationships
Brand Associations• Personality• Benefits• Attitudes
Provides Value to Customerby Enhancing:• Interpretation/processing of information• Confidence in the Purchase Decision• Use Satisfaction
Provides Value to Firm by Enhancing:• Efficiency and Effectiveness of Marketing Programs• Brand Loyalty• Prices/margins• Brand extensions • Trade Leverage• Competitive Advantage
What is Brand Equity?
Source: Aaker (1991) “Managing Brand Equity”Source: Aaker (1991) “Managing Brand Equity”
How Brand Equity Provides Value
HighBrand
Loyalty
Other BrandAssets
More/BetterBrand
Associations
HighPerceived
Quality
HighBrand
Awareness
Reduced marketing costs
Increased trade leverage
Patents or trademarks
Strong channel relationships
Creates positive image
Helps customer process information
Supports quality positioning
Supports higher-price strategy
Easier to make brand associations
Increased liking and familiarity
Provides value to customer:Assists in customer information processingIncreases confidence in purchaseIncreases satisfaction in product use
Provides value to firm:Increases effectiveness of marketing programsIncreases customer loyalty and trade leverageFacilitates brand extensionsIs a source of competitive advantage
Benefits of Brand Equity
•Stronger brand loyalty•Larger margins (price elasticity)•Less vulnerability•Higher trade support•Increased marketing communication•effectiveness•More opportunities for licensing and brand•extensions (line/product and geographical•extensions)
Customer based Brand Equity
Customer-based brand equity is the differential effect of brand knowledge on consumer response to the marketing of a Brand
Marketing Programme
of a brand
Brand Equitya differential
effect
BrandKnowledge
of the brand
Source of Brand Equity
•The Brand Knowledge Structure is the source of Brand Equity•What resides in the consumer's mind in the form of knowledge structure determines the brand equity
What is Knowledge Structure
• A brand in the mind is a memory / node which is connected with other nodes signifying various associations
• This network is called Brand knowledge• The structure and content of brand
knowledge influences consumer behaviour
Brand Knowledge
• Sources of Brand Knowledge
– Brand Awareness
– Brand Image• Strength of Brand Associations• Favorability of Brand Associations• Uniqueness of Brand Associations
Building Customer-Based Brand Equity
Brand knowledge structures depend on . . .The initial choices for the brand elements
The supporting marketing program and the manner by which the brand is integrated into it
Other associations indirectly transferred to the brand by linking it to some other entities
Brand Elements
• A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique brand associations:
– Brand Name– Logo– Symbol– Jingles
Character Packaging Slogan
Components of Brand Knowledge
BrandKnowledge
BrandKnowledge
BrandAwareness
BrandRecognition
Asso-ciation
Brand Recall
PerceptionBrand Image
1) Visually and verbally reinforce the brand ID2) Develop creative memorable linkages between the brand andthe situations.
1) increase brand strength by providing relevant and consistent information
2)Improve Brand Favorability by crea ting association with
desirable, deliverable attributes/benefits
3) Develop uniqueness by associating point of parity/
difference to the brand
Purchase / Consumption
What is Brand Awareness?
• Ability to identify a brand under different conditions
• Brand Recall• Brand Recognition
• A necessary condition for inclusion in the set of brands being considered for purchase
• A sufficient condition for choice in low-involvement decision settings
• Influences the nature and strength of association
Brand Image
o
User Imagery
Brand ImageBrand Perceptions through Associations
Attributes AttitudesBenefits
Non-product-related
Product related(various degreesof features / ingr-
edients
Symbolic
Experimental
Functional
Brand Personality
Feelings & feelings associatedexperiences
Usage Imagery
Price
Uniqueness of brand association
Favourability of brand association
Strength of brand association
Types of brand association
Strength Of Brand Association
Brand A
Connection by Inferences
Connection by Communicated
Commercial Messages
Connection by Communicated
Non-Commercial Messages
Connection byDirect Experience
20
Free Associations
LEVI’S501
High quality, long lasting, and durable
Blue denim, shrink-to-fit cotton fabric, button-fly,
two-horse patch, and small red pocket tag
Feelings of self-confidenceand self-assurance
Comfortable fittingand relaxing to wear
Honest, classic,Contemporary, approachable,
independent, and universal
Appropriate for outdoorwork and casual social
situations
Western, American, blue collar, hard-working,
traditional, strong, rugged, and masculine
BENEFITS
ATTRIBUTES
Symbolic
Usage ImageryUser Imagery
Brand Personality
Functional
Product-Related
Experiential
Strength of Brand Association (Initial
Associative Strength)
• BRAND A•Quantity : Attention•Quality : Relevance and Consistency
Strength of Brand Association– Recallability
(Long-Term Associative Strength)
Length Of Time
Presence of other Product Information
Type and number
of cues in the context of recall
Favorability and Uniqueness of Brand
Associations
I Want It(Desirability
Brand X can deliver it(Deliverability)
It is Different
Determine Desired Brand Knowledge
• Identify Target Market– Demographic, Psychographic,Geographic, and
Behavioral Segmentation
• Identify the Brand Competitors• Analyze the Similarities and Differences
between the Brand and the Competitors– Point of parity is often the first step before
the establishment of the point of difference