BRAND EQUITY

OVERVIEW
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WHAT IS A BRAND?
name, term, sign, symbol, design, or combination intended to identify the goods or services differentiate them from those of competitors

THE ROLE OF BRANDS

Identify the maker Simplify product handling Organize accounting Offer legal protection

THE ROLE OF BRANDS

Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium

BRAND EQUITY
Added value endowed on products or services Reflected in how consumers think, feel and act Set of assets linked to a brand adds to the value provided by a product Set of liabilities linked to a brand subtracts from the value provided by a product

BRAND EQUITY: KEY BENEFITS

Improved perceptions of product performance Greater Loyalty Less vulnerability to competitive marketing Less vulnerability to marketing crises Larger Margins More inelastic consumer response to price increase Additional Brand extension opportunities

BRAND EQUITY: VALUE TO CUSTOMERS

Brand equity assets can help customers interpret, process and store huge quantities of info about products / brands It can affect customers confidence in purchase decision Both perceived quality and brand associations can enhance customers satisfaction with use experience

BRAND EQUITY: VALUE TO FIRM

Brand equity can enhance programs to attract new customers or recapture old ones Perceived quality, associations and known name provide reasons to buy & affect use satisfaction Usually allows higher margins by permitting both premium pricing and reduced promotions Brand equity assets provide a competitive advantage that present a barrier to competitors

BRAND EQUITY MODELS

Brand Asset Valuator Aaker Model BRANDZ Brand Resonance

BRAND ASSET VALUATOR

Developed by Advertising agency Young and Rubicam(Y&R). According to BAV there are four pillars of brand equity: Differentiation Relevance Esteem Knowledge Differentiation and relevance point to the brands future value and Esteem and acknowledge reflects the past performance of the firms.

AAKER MODEL
Viewed by UC-Berkeley professor David Aaker. There are a set of five categories of brand assets and liabilities which add value to the product. They are: Brand loyalty Brand awareness Perceived quality Brand associations Other proprietary assets

BRANDZ
Developed by marketing research consultants Millward and WPP. As per this model brand building involves series of steps The objectives of each steps are the following: Presence Relevance Performance Advantage Bonding

BRAND RESONANCE
It also views brand building as an ascending, sequential series of steps Ensuring identification of the brand with customers minds with a specific product class or customer need. Firmly establishing the brand into the mind of the consumer. Eliciting proper customer response to in terms of brand related judgment and feelings.

MEASURING BRAND EQUITY

Brand Audits

Brand Tracking Brand Valuation

MEASURING BRAND EQUITY

Brand Audit: is a consumer-focused exercise that involves a series of procedures to access the heath of the brand, uncover its sources of equity and suggest ways to improve and leverage its equity.

MEASURING BRAND EQUITY

Brand tracking: Tracking studies collect information from the consumers on a routine basis over time. Tracking studies employ quantitative study methods. Brand Valuation: It is concerned of estimating the total financial value of the brand.

MANAGING BRAND EQUITY

Brand Reinforcement

Brand Revitalization

MANAGING BRAND EQUITY

Brand Reinforcement
continuously improving products, services and marketing requires innovation and relevance throughout marketing programs

Brand Revitalization
change in positioning re-inventing or overhauling the brand image