Creating And Managing Brand

EquityPresented by

Ugonna I. Aguta

INTRODUCTION

What Is Branding? The American marketing association defines a brand as a name, term, sign, symbol, or design, or a combination of them, intended to identify a goods or services of one seller or group of sellers and to differentiate them from that of competitors.

Consumers need to know why they should prefer your product to that of your competitors that is why as marketers we have a duty to teach them “who” the product is –that is why we have to give it a name and other distinct features that separate it from others and why they should care.

Brand Equity this refers to the value of the brands overall strength in the market i.e. the added value endowed to products and services. It may be reflected in the way consumers think, feel and act in respect to the brand as well as in the prices, market share, and profitability the brand commands for the firm.

Elements of brand equity:Brand loyaltyBrand awarenessPerceived qualityBrand associations

Brand Loyalty Brand loyalty is a consumers preference to buy a particular brand in a product category. It occurs because consumers perceive that the brand offers the right product features, images or level of quality at the right price. this perception becomes the foundation for a new buying habit.

Brand loyalty has the following mindset

I am committed to this brandI am willing to pay a higher price for this brand over other brands

I will recommend this brand to others

Strategic Value Of Brand Loyalty

Reduce marketing costTrade(channel distribution)leverage

Attracting new customersEnhancing brand loyaltyTreat the customer rightStay close to the customer

Measure/manage customer satisfaction

Create customer satisfaction

Provide extras

Brand AwarenessBrand awareness refers to how aware customers and potential customers are of your business and its product.

Within a week after its introduction, surveys found that more than 90% of us consumers had heard about the iphone as a result of advertising and news reports.

Brand awareness plan

Identifying and understanding your target customers

Creating a company name, logo, and slogan

Adding value through packaging, location, service, special events etc

AdvertisingAfter- sales follow-up and customer relations management

 

Brand Awareness HierarchyTop of mindBrand recallBrand recognitionUnaware of brand

PERCEIVED QUALITY The customers perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives. Perceived quality is a perception by customers.

The following influence perceived quality of a product

PerformanceFeaturesConformance with specification

ReliabilityDurabilityServiceabilityFit and finish

Brand Association Brand association consist of all brand related thoughts, feelings, Perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand node. For instance BMW is associated with sophistication, fun driving and superior engineering and we can also say Microsoft is associated with Bill Gates.

Maintaining brand association

Be consistent over timeBe consistent over the elements of the marketing program

Manage disaster in other to minimize their damage

Brand Valuation Brand Promise

Brand equity needs to be distinguished from brand valuation, which is the job of estimating the total financial value of the brand. certain companies base their growth on acquiring and building rich brand portfolios.

This is the marketers vision of what the brand must be and do for consumers. At the end of the day , the true value and future prospects of a brand rest with the consumers, their knowledge about the brand, and their likely response to marketing activity as a result of this knowledge.

Brand FamiliarityBrand familiarity means how well customers recognize and accept a company’s brand. the degree of brand familiarity affects the planning for the rest of the marketing mix especially where the product should be offered and what promotion is needed.

Building brand identity requires additional decisions on the brand’s name, logo, colors, tagline, and symbol. A brand could mean much more than all these as it is the marketer’s promise to deliver a specific set of features, benefits, and service constantly to the buyers. the marketer must establish a mission for the brand and a vision for what the brand must be and do.Brand bonding occurs when customers experience the company is delivering on its benefit promise. this is the fact that brands are not build by advertising but by the brand experience.

Criteria For Brand Name Selection

Be easy to learn and rememberSuggest the product classSupport a symbol or sloganSuggest desire association without being boring or trivialNot suggest undesired associationBe distinctive

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Thank You!!!