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Brand Equity

Brand equity is defined as the additional value a brand adds to a product or service, influencing consumer perception and behavior. Building brand equity is essential for enhancing market power, increasing customer loyalty, and achieving long-term profitability. The document also outlines the Brand Resonance Pyramid and sources of brand equity, emphasizing its importance in both consumer and business-to-business contexts.

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Chandan Naik
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16 views12 pages

Brand Equity

Brand equity is defined as the additional value a brand adds to a product or service, influencing consumer perception and behavior. Building brand equity is essential for enhancing market power, increasing customer loyalty, and achieving long-term profitability. The document also outlines the Brand Resonance Pyramid and sources of brand equity, emphasizing its importance in both consumer and business-to-business contexts.

Uploaded by

Chandan Naik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Brand Equity

Introduction
• Building brands is an important aspect of marketing for the long-
term sustenance of a firm.
• A brand name not only imparts recognition to a product but gives it
an identity. In the same product class, products of different firms
can have different meanings for consumers.
• The question is how do consumers associate these different
meanings to different brands?
• This is because a brand name adds value to a product beyond the
brand elements and the value added depends on customer
perception
Brand Equity defined

• ‘Brand equity can be thought of as the additional


cash flow achieved by associating a brand with the
underlying product or service’
(Biel 1992).
Brand Equity defined

• ‘Brand equity is a set of brand assets and liabilities


linked to a brand, its name, and symbol, that adds
value to or subtracts from the value provided by a
product or service to a firm and/or to that firm’s
customers’
(Aaker 1991).
Brand Equity defined

• ‘The differential effect the brand knowledge


has on consumer response to marketing of that
brand’
Keller, 2004
Need for Building Brand Equity
• Brand equity has a positive influence on market power.
• It positively impacts consumers’ willingness to pay price premiums.
• It leads to ‘higher efficiency and effectiveness of their marketing
programs’.
• It positively impacts the company’s market share.
• It results in improved future profits and long-term cash-flow.
• It can build brand loyalty, which in turn reduces marketing costs.
Need for Building Brand Equity
• It can deliver emotional, safety, prestige, or other benefits that are
important to consumers.
• It reduces the anticipated risk, enhances anticipated confidence in
the brand purchase decision, and increases satisfaction with the
brand.
• It leads to sustainable competitive advantage.
• It ultimately leads to marketing success for the brand.
• Strong brand equity can help in achieving success for new products
launched as brand extensions.
Brand Resonance Pyramid

Step 4 Brand relationship


and brand loyalty

Step 3 Developing Brand response


· Judgments
· Feelings

Step 2 Forming Brand meaning


· Performance
· Image

Step 1
Creating Brand Identity
Levels of brand awareness
Level 6: Opinion
about Bbrand

Level 5: Knowledge of
the Bbrand

Level 4: Brand
supremacy

Level 3: Top-of-the
mind recall

Level 2: Brand
recall

Level 1: Brand
recognition
Brand Equity in a Business to Business Context

• Brand identity — Manufacturer’s brand salience


• Brand meaning — Includes performance and
reputation
• Brand response — includes judgements and sales
force relationships
• Brand relationships — partnership solutions
Sources of Brand Equity
Joint Perceived
Branding Advertising
programmes
spending Corporate
Brand Societal
knowledge Marketing

Brand
Brand elements
associations

Building
Brand Brand
Perceived Equity community
quality

Country-of-
origin
Brand
loyalty
Company
image
Endorsements
Events, third Distribution
party channels
Aaker Brand Equity Model

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