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