Brand Management

Module 2 Part 1
Brand Equity
 Brand equity is a marketing term that describes a brand’s
value. That value is determined by consumer perception of
and experiences with the brand. It is the differential effect
that brand knowledge has on consumer response to the
marketing of that brand.

Brand If people think highly of a brand, it has positive brand

equity. Positive brand equity makes customers more
Equity…. accepting of a new brand extension , less sensitive to price
increases and withdrawal of advertising support , or more
willing to seek a brand in the new distribution channel.
When a brand consistently under-delivers and disappoints
to the point where people recommend that others avoid it, it
has negative brand equity.
  The power of the brand lies in what resides in the minds of the
consumers.
 The power of a brand lies what customers have learned, felt,
seen and heard about the brand as a result of their experiences
overtime.

Customer  Three key ingredients in this model:

Differential effect –Brand equity arises from differences in
based Brand customer’s response.

Equity (CBBE) Brand Knowledge-These differences are a result of the consumer’s

knowledge of brands.
Consumer Response to Marketing-Thirdly, consumers
differential responses which make up brand equity are reflected in
perceptions ,preferences and behaviour related to all aspects of
Brand Marketing.
  Customer Based Brand Equity occurs when the customer has a
high level of awareness and familiarity with the brand and
holds some strong ,favourable and unique brand associations in
Sources of memory.

Brand Equity  Brand Awareness

 Brand Image
  Brand Awareness consists of 2 components:
 Brand Recognition consists of the prior exposure to the brand
when given as a cue.

Brand  Brand Recall Performance- is consumer’s ability to retrieve

the brand from memory when given the product
Awareness category ,needs fulfilled by the category , or a purchase or
usage situation as a cue. For example ,Kellogg’s corn flakes
will depend on consumer’s ability to retrieve the brand when
they think of the cereal category.
  Positive Brand Image is related to creating marketing
programmes that link strong, favourable ,unique associations to
the brands in memory.
 Three important considerations are
Favourability
Strength
Brand Image Uniqueness
Brand Associations play an important role. Consumers can form
brand associations through direct experience, consumer
reports ,word of mouth , name ,logo or identification with a
company ,country , channel of distribution , person, place or
event. Eg. Body Shop
Keller’s model
of Customer
Based Brand
Equity
  Achieving the right brand identity means creating brand
salience with consumers. Brand Salience measures
awareness of the brand , i.e. how often and how easily
the brand is evoked under various situations or
circumstances.
Salience  Brand awareness refers to customer’s ability to recall and
recognize the brand under different conditions and to
link the brand name, logo ,symbol and so forth to certain
associations in memory.
 Breadth and Depth of Brand awareness.
  Brand performance describes how well the product or service
meets customers’ more functional needs.
 Brand Performance is experienced through :
 Primary ingredients and supplementary features
Performance  Product reliability , durability and serviceability
 Service effectiveness , efficiency and empathy
 Style and design
 Price
  Brand imagery depends on the extrinsic properties of the
product or service . It is the way people think about a brand
abstractly , rather than what they think the brand actually does.
 Imagery refers to more intangible aspects of the brand and
consumers can form imagery out of their own experiences or
through word of mouth. The four main intangibles that can be
Imagery linked to a brand are:
 User profiles
 Purchase and Usage situations
 Personality and values
 History , Heritage and experiences.
  Brand judgements are customer’s personal opinions about and
evaluations of the brand ,which consumers form by putting
together all the different brand performance and imagery
associations.
 Judgements may be done about:

Judgements  Brand Quality

 Brand Credibility (Perceived expertise, trustworthiness and
likability)
 Brand consideration
 Brand Superiority.
  Brand Feelings are customers’ emotional responses and
reactions to the brand.
 Following are the six types of brand-building feelings:
 Warmth
 Fun
Feelings  Excitement
 Security
 Social Approval
 Self Respect
Case on Titan with respect to emotions.
 Brand Resonance describes the nature of the relationship and the
extent to which customers feel that they are “in sync” with the
brand . Brand resonance can be broken into 4 categories:
1.Behavioral Loyalty
2.Attitudinal Attachment
Resonance 3.Sense of community

4.Active engagement
Examples include Harley Davidson, Apple.
Case Study  Coca Cola case study on Keller’s model.
Brand Equity  Brand as a reflection of past.

as Bridge….  Brand as a direction of future.

 • Coca-Cola is a brand known for a product best used at the time
of happiness, joy, and good experience. It is the ‘original cola’
and has a ‘unique taste’.
• Woodland Shoes are solid and are an ideal choice for outdoors.
They last very long.

Examples of • McDonald’s has an image of an inexpensive brand that serves

the food very quickly.
Brand • Walmart is best known for a retail brand selling goods for a

Image…. lesser price than usual retailers.

• Rolls-Royce is a premium brand considered to be exclusive for
wealthy and influential people.
• The brand image of Nike is different from other apparel brands.
It’s considered to be a cult brand which deals only in sportswear.