BRAND EQUITY

BRAND – According to American Marketing Association

brand is “a name,term,sign, symbol, or design, or a
combination of them, intended to identify the goods
and services of one seller or group of sellers to
differentiate them from those of competitors”.
 Role of Brands
Brands identify the source or maker of a product and
allow consumers-either individuals or organizations-to
assign responsibilities for its performance to our
particular manufacturer or distributor.
Brands also perform valuable functions for firms.
Brands signal a certain level of equality so that satisfied
buyers can easily choose the product again.
 Scope of Branding
Branding is endowing products and services with the power of a brand. Its
all about creating differences between the products. Marketers need to
teach consumers “who” the product is-by giving it a name and other
brand elements to identify it-as well as the product does and why
consumers build care. Branding creates mental structures that help
consumers organize their knowledge about products and services in a
way that clarifies their decision making and in the process, provides
value to the firm. For branding strategies to be successful and brand
value to be created, consumers must be convinced there are meaningful
differences among brands in the products or service category. Marketer
can apply branding virtuality anywhere a consumer has a choice.
 Defining Brand Equity
Brand Equity- is the added value endowed on products and
services. It maybe reflected in the way consumers think, feel
and act with respect to the brand, as well as the prices, market
shares and profitability the brand commands by the firms.
Costumer-Based Brand Equity – is the differential effect that
brand knowledge has on consumer response to the marketing
of the brand. A brand has positive consumer base brand
equity when consumers react more favorably to a product and
the way it is marketed when the brand is identified than when it
is not identified. A brand has a negative consumer base brand
equity if the consumers react less favorably to marketing
activity for the brand under the same circumstances.
Key Ingredients of Consumer Base-Brand Equity

1. Brand equity arises from differences consumer

response.
2. Differences in response are a result of
consumer’s knowledge about the brand.
3. The differential response by consumers that makes
up brand equity is reflected in perceptions ,preferences
and behavior related to all aspects of the marketing of a
brand.
 Marketing Advantages of Strong
Brands
Improved perceptions of product performance
Greater loyalty
Less vulnerability to competitive marketing actions
Less vulnerability to marketing crises
Less margins
More inelastic consumer response to price increases
More elastic consumer response to price decreases
Greater trade cooperation and support
Increased marketing communication effectiveness
Possible licensing opportunities
Additional brand extension opportunities
 Brand Equity Models
1. Brand Asset Valuator- advertising agencies young and
rubicam(Y&R) developed a model of brand equity called brand asset
valuator(BAV).
There are five key components- or pillars-of brand equity, according to
BAV :
 Differentiation – measures the degree to which a brand is seen as
different from others.
 Energy – measures the brand’s sense of momentum
 Relevance- measures the breadth of a brand’s appeal
 Esteem - measures how well the brand is regarded and respected
 Knowledge – measures how familiar and intimate consumers are with
the brand
 Building Brand Equity
1. The initial choices of the brand elements or
identies making up the brand (brand names logos,
symbols, characters, spokespeople,
slogans,jingles,packages and signage).
2. The product and services and all accompanying
marketing activities and supporting marketing
programs.
3. Other associations indirectly transferred tothe
brand by linking it to some other entity.(a
person,place or things)
Brand Equity as A Bridge
2. BRANDz MODEL – marketing research consultants
Millward Brown and WPP have developed the
BRANDZ model of brand strength, at the heart of
which is the brand dynamic pyramid
B
o
n
di
n
Advantage
g

Performance

Relevance

Presence
3. AAKER MODEL
-Former University of California, Berkeley
professor David Aaker views brand equity as
the brand awareness, brand loyalty, and brand
associations that combine to add to or subtract
from the value provided by a product or
services.
-Brand management starts with developing
brand identity- the units set of associations that
represents what the brand stands for and
promises to consumers, an inspirational brand
image.
4. BRAND RESONANCE MODEL
-Views brand building as an asceding series of steps from bottom
to top :
1. Ensuring identification of the brand with customers and an
associations of the brand in customers’ minds with the specific
product class or costumer need;
2. Firmly establishing the totality of brand meaning in the minds of
customer by stratigically linking a host of tangible and
intangible brand associations;
3. eliciting the proper costumer responses in terms of brand-
related judgement and feelings;
4. And converting brand response to create an intense, active
loyalty relationship between costumers and brand.
●Brand Salience- is how often and how easily customers think of the
brand under various purchase or consumption situation.
●Brand Performance- is how well the product or service meets
customers’ functional needs.
●Brand ImAgery- describes the extrinsic properties of the product or
services, including the ways in which the brand attemps to meet
customer’ psychological or social needs.
●Brand Judgments- focus on customers own personal opinions and
evauation.
●Brand Feelings- are customers emotional responses and reaction with
respect to the brand.
●Brand Resonance- refers to the nature of the relationship customers
have with the brand and the extent to which they feel they are “in sync”
with it.
 Choosing Brand Elements

Brand Elements- are those

trademarkable devices that identify and
differentiate the brand.
Most strong brands employ multiple
brand elements.
 Brand elements Choice Criteria

1. Memorable- how easily is the brand element recalled and

recognized?
2. Meaningful- is the brand element credible and suggestive of the
corresponding category? Does it suggest something about a
product ingredient or the type of person who might use the
brand.
3. Likable- how aesthetically appealing is the brand elements? Is it
likable visuall, verbally, and in other ways?
4. Transferable- can the brand elements be used to introduce new
products in the same or diferrent categories? Does it add to the
brand equity across geographic boundaries and market
segments.
5. Adaptable- how adaptable and updatable is the brand elements.
6. Protectible- how legally protectible is the brand elements? How
competitively protectible?
 Developing Brand elements
Brand elements can play a number of brand-building
roles. If the consumers don’t examine much
informationin making thier product decisions,brand
elements should be easy to recognize ane recall and
inherently descriptive and persuasive. The likability
and appeal of the brand elements may also play
critical roles in awareness and associations leading to
brand equity.
3 important principles for internal branding are:

1. Choose the right moment

2. Link internal and external marketing
3. Bring the brand alive for employees.
Measuring brand equity

An indirect approach assesses potential

sources of brand equity by identifying and
tracking consumer brand knowledge
structure
A direct approach assesses the actual
impact on brand knowlege on consumer
response to different aspects of the
marketing.
Devising a branding strategy
A firm’s branding strategy reflects the number and
nature of both common and distinctive brands elements
it applies to the products it sells.

3 main choices:
1. It can develop new brands elements foe thenew product.
2. It cna apply some of its existing brands elements.
3. It can use combination of new and existing brand elements.