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MEANING :
The Brand Equity refers to the additional value that a consumer attaches with the brand that is unique from all the
other brands available in the market. In other words, Brand Equity means the awareness, perception, loyalty of a
customer towards the brand.
E.g., The additional value a customer is willing to pay for Uncle Chips against any local chips brand available with
the shopkeeper
Customer Brand Equity can be studied in 3 different ways:
1. The Different Responses of a customer towards the product or service helps in determining the brand equity.
The way customer thinks about the brand and considers it to be different from the other brands will generate a
positive response for that brand and will contribute to its goodwill.
E.g., Customer, have a positive response towards Mac laptops because of its anti- virus software.
2. The responses can be generated only if customers have sufficient knowledge about the brand; thus, Brand
Knowledge is essential to determine the brand equity. The Brand knowledge includes the thoughts, feelings,
information, experiences, etc. that establish an association with the brand.
E.g., Brand Association reflects the knowledge about the product such as woodland is recognized for its rough
and tough styling.
3. The different customer’s response that adds to the brand value depends solely on the Marketing of a Brand.
The strong brand results in substantial revenues for the organization and better understanding about the product
among the customers.
Thus, the marketers basically study the Customer-Based Approachwherein they study the response of a customer
towards the brand that can be reflected in their frequency of purchase. It focuses on customer’s perception i.e. what
they have read, felt, thought, seen about the brand and how it has helped them to satisfy their urge of need.
1. Memorability: Brand elements that help achieve a high level of brand awareness or attention to the brand, in turn
facilitate the recognition and recall of a brand during purchase or consumption.
2. Meaningfulness: Here a marketer needs to ensure that brand elements are descriptive and suggesting something
about the product category of the brand. This is important to develop awareness and recognition for the brand in a
particular product category.
Secondly, the brand elements also need to have a persuasive meaning and suggest something about the particular
benefits and attributes of the brand. This is necessary for defining the positioning of the brand in a particular
category.
3. Likability: Brand Elements need to be inherently fun, interesting, colourful and not necessarily always directly
related to the product.
A memorable, meaningful and likable brand element makes it easier to build brand recognition and brand equity,
thus reducing the burden on the marketer and thereby reducing the cost of marketing communications.
The above 3 criteria constitute the "Offensive Strategy" towards building brand equity
4. Transferability: is the extent to which brand elements can add brand equity to new products of the brand in the
line extensions. Another point, a marketer needs to keep in mind is that the brand element should be able to add
brand equity across geographical boundaries and market segments. For example, brand names like “Apple”,
“Blackberry” represent fruits the world over, thus as a brand name it doesn't restrict brands and product extensions.
5. Adaptability: Consumer opinions, values and views keep changing over a period of time. The more adaptable and
flexible brand elements are the easier it is to keep up changing and up to date from time to time to suit the
consumers liking and views. For example, Coca -Cola has been updating it's logo over the years to keep up with the
latest trends, fashions and opinions.
6. Protectability: the final criteria in choosing a brand element is that it should be protectable legally and
competitively. Brand elements need to be chosen in such a way, that they can be internationally protected legally,
legally registered with legal bodies. Marketers need to voraciously defend their trademarks from unauthorized
competitive infringements.
The above 3 criteria constitute the "Defensive strategy" towards leveraging and maintaining brand equity
The most ideal brand elements would be those which satisfy all the criteria. But it is not possible have a brand
element which would satisfy all the above criteria. For example, if we choose a brand name which is most
meaningful in a country or culture or a market segment, it would be very difficult to make it transferable to other
brand extensions and to other cultures and market segments.
The following are the six steps to persuade by any form of communications:
4. Yielding: A person must respond to the intended message or arguments of the communication.
5. Intentions: A person must plan an act in the desired manner of the communication.
6. Behavior: A person must actually act in the desired manner of the communication.
Role of Multiple Communications Marketers will employ multiple communications to achieve goals. In doing so,
they must understand how each communication option works and how to assemble and integrate the best set of
choices. Overview of Marketing Communication Options Advertising is any paid form of nonpersonal presentation
and promotion of ideas, goods and services by an identical sponsor. Although it is a powerful means of creating
strong, favorable, and unique brand associations and eliciting positive judgments and feelings, advertising is
controversial that its specific effects are often difficult to qualify and predict.
Example: Television is a powerful medium. It allows for sight, sound and motion and reaches a broad spectrum of
consumers. TV advertising has two particularly strengths: Effective means of vividly demonstrating product
attributes and persuasively explaining their corresponding consumer benefits. It can be compelling means for
dramatically portraying user and usage imagery, brand personality, and other brand intangibles. On the other hand, it
has its drawbacks: Fleeting nature of the message and the potentially distracting creative elements often found in a
TV ad. The large number of ads and non-programming material on television. Guidelines Message strategy or
positioning of an ad VS Creative strategy Effective advertising campaigns is both art and science The artistic
aspects relate to the creative strategy of the ad and its execution.
The scientific aspects relate to the message strategy and brand claim the ad contains. Defining the proper positioning
to maximize brand equity Identifying the best strategy to communicate or convey the desired positioning Creative
strategies can be:
- Informational
- Transformational
- However, certain motivational or "borrowed interest" devices can attract consumers' attention Many believe
that such technique is necessary in the tough new media environment. Unfortunately, these attention-
getting tactics are often too effective and distract from the brand.
Future Prospects : The future of television and traditional mass marketing advertising is uncertain. Advertisers will
eventually bypass agencies interactive shopping channels, CD-ROM catalogs, multimedia kiosks and online
services. At least for some, the power of TV ad remains. "Nothing competes with prime time television when it
comes to communicating with a mass audience. Other mediums can't entertain and inform in the same captivating
way."
Radio It is a pervasive medium. It has been less studied than other media. Nevertheless, radio ads can be extremely
creative.
Advantages:
- Stations are highly targeted
- Ads are relatively inexpensive to produce and place
- Short closings allow for quick responses.
Disadvantages:
- Lack of visual image
- Relatively passive nature of consumer processing that results Print It can provide detailed product
information and may be difficult to provide dynamic presentations or demonstrations.
- It can be a fairly passive medium and it can effectively communicate user and usage imagery.
Guidelines:
- Clarity
- Consistency
- Branding
Direct Response : It uses mail, telephone, Internet, and other non-personal contact tools to communicate with or
solicit a response from specific customers and prospects. Infomercial - attempts to combine the sell of commercials
with the draw of information and entertainment; cross between a sales call and a television ad. Guidelines:
Advantages:
- Easier for marketers to establish relationships with consumers.
- Allow marketers to explain new developments with their brands to consumers on an ongoing basis
- Allow consumers to provide feedback to marketers about their likes and dislikes and specific needs and
wants
Disadvantages:
Intrusiveness and clutter
Many marketers are embracing database marketing. Database marketing is more effective at helping firms retain
existing customers. Interactive Marketers scrambled to build a presence in cyberspace. The approaches that
companies adopted vary widely. Two online crucial brand-building tool:
Websites
Interactive ads Websites Advantages:
Low cost
Level of detail
Degree of customization it offers
Allow any consumers to choose the brand information relevant to his or her needs or desires Some of the more
successful Web sites are those that are able to convey expertise in a consumer-relevant are : Online Ads.
Potential advantages:
- Accountable.
- Non-disruptive
- It can target customers, so that not only the most promising prospects are contacted.
Disadvantages:
- Many consumers find it easy to ignore banner ads.
- Web ads are becoming closer to traditional forms of advertising.
Search advertising - users are presented with sponsored links relevant to their search words alongside unsponsored
search results Mobile Marketing Investment in mobile marketing from a range of sectors looking to tap a new
revenue stream is expected to grow rapidly during the next few years. A key question is: How can marketers get cell
phone users to opt in? Place Often called "non-traditional", "alternative", or "support" advertising, because it has
arisen in recent years as a means to complement more traditional advertising media.
Place advertising : Also called as "out-of-home" advertising, is a broadly defined category that captures advertising
outside traditional media. Bill Boards and Posters It have evolved over the years and now employ colourful, digitally
produced graphics, back-lighting sounds, movement and unusual - even three dimensional - images to attract
attention.
Marketing communication options : cover above medias – TV, radio, print media,
advertising, search engines, magazines etc
Information processing model of communication
Steps that need to occur:
The source or sender (therefore in this case the advertising company) needs to send a message, known as encoding,
which “involves putting thoughts, ideas, or information into a symbolic form. The sender’s goal is to encode the
message in such a way that it will be understood by the receiver.” The next part is the channel message, this can be
divided into the marketing experience of channels (how the message is sent) which can be personal or non personal
[direct contact or indirect contact with consumers] and the message itself (therefore the information being sent). The
receiver is the target group that will receive the message and therefore (with the addition of noise - which is the
unplanned distortion of the channel/message or interference). Finally, there is the response/feedback. This is based
on the perception of the message that has been received by the receiver, which may vary in relation to the
contrasting noise.
These are all different process of reception and feedback within the Traditional Response Hierarchy Models.
“Hierarchy of effects model shows the process by which advertising works; it assumes a consumer passes through
a series of steps in sequential order from initial awareness of a product or service to actual purchase. A basic premise
of this model is that advertising effects occur over a period of time.
The innovation adoption model evolved from work on the diffusion of innovations. This model represents the
stages a consumer passes through in adopting a new product or service. Like the other models, it says potential
adopters must be moved through a series of steps before taking some action (in this case, deciding to adopt a new
product). The steps preceding adoption are awareness, interest, evaluation, and trial.
Information processing model of advertising effects, developed by William McGuire. This model assumes the
receiver in a persuasive communication situation like advertising is an information processor or problem solver.”