Branding Terminologies

 Brand equity – the commercial value a brand provides to a firm through its effects on
the attitudes and behaviours of its stakeholders.
 Brand identity – a name, symbol or design that identifies a product, service or entity
from others.
 Brand image – a set of associations attached to a brand identity in the minds of its
stakeholders.
 Brand promise – the customer value proposition or benefits communicated by the brand
to the customer and/or consumer.
 Brand purpose – this answers the question of why a brand exists with respect to the
positive difference it aims to make in people’s lives.
 Brand valuation – A process of estimating the total financial value of the brand.
 Brand value – the incremental earning stemming from a branded compared to an
unbranded business and product.

3B Alignment

Business Brand Behaviour

Importance of Alignment

 The bottom line is that any brand—no matter how strong at one point in time—is
vulnerable, and susceptible to poor brand management.
 Savvy customers
 Brand proliferation
 Media fragmentation

Customer-Based Brand Equity

“The differential effect that brand knowledge has on consumer response to the marketing of that
brand.”

 Differential effect
o Differences in consumer response
 Brand knowledge
o A result of consumers’ knowledge about the brand
  Consumer response to marketing
o Choice of a brand
o Recall of copy points from an ad
o Response to a sales promotion
o Evaluations of a proposed brand extension

Making a Brand Strong: Brand Knowledge

 Brand knowledge is the key to creating brand equity.

 Brand knowledge consists of a brand node in memory with a variety of associations
linked to it.
 Brand knowledge has two components: brand awareness and brand image.

Sources of Brand Equity

 Brand awareness
o Brand recognition
o Brand recall
 Brand image
o Strong, favorable, and unique brand associations

Brand Awareness Advantages

 Learning advantages
o Register the brand in the minds of consumers
 Consideration advantages
o Likelihood that the brand will be a member of the consideration set
 Choice advantages
o Affect choices among brands in the consideration set

Establishing Brand Awareness

 Increasing the familiarity of the brand through repeated exposure (for brand
recognition)
 forging strong associations with the appropriate product category or other relevant
purchase or consumption cues (for brand recall)

Creating a Positive Brand Image

 Brand Associations
o Does not matter which source of brand association
o Need to be favorable, strong, and unique
o Marketers should recognize the influence of these other sources of information by
both managing them as well as possible and by adequately accounting for them in
designing communication strategies.