Brand Equity

Definitions

• Measurable financial value that accrues to a product/service from successful programs & activities – Walker & Yankelovich

• A set of brands assets & liabilities linked to the brand’s name, symbol that add or subtract from the value it provides – David Aaker

Definitions

• The differential effect of

brand knowledge on

consumer response to the marketing of the brand

Brand Equity- Advantages

1. Brand equity as a bridge

• Reflection of the Past

• Direction for the future

2. Focus and Guidance

Sources of Brand Equity

1. Brand Awareness- recognition & recall

• Learning advantages

• Brands become part of the consideration set

• Affects Choices of consumers

Sources of Brand Equity2. Brand Image & Association- link strong

favorable unique associations to the brand

• Strength of brand association- attributes (descriptive features of product) & benefits (personal value & meaning attached to product)

• Favorability – relevant, distinct, belief• Uniqueness – points of parity & points of

difference

Consumer Based Brand Equity

CBBE – differential effect that brand knowledge has on the consumers response to the marketing of that brand.

3 key elements1. Differential effect2. Brand knowledge3. Consumer response to marketing

Power of the brand lies in the mind of the consumers.

CBBE Pyramid

Brand Salience

Consumer-BrandResonance

ConsumerJudgment

ConsumerFeelings

BrandPerformance

BrandImagery

4 Bond – Strong relationship

1 Broad Awareness

2 Differentiators

3 Emotional and Intellectual influence

Sub-dimensions of brand building blocks

Salience

Resonance

JudgmentsFeelings

PerformanceImagery

LoyaltyAttachmentCommunityEngagement

QualityCredibilityConsiderationSuperiority

Warmth, FunExcitement,Security, SocialApproval, Self-Respect

4 Brand Relationships (WHAT About You AND ME?)

1 Brand Identity (WHO Are You?)

2 Brand Meaning (WHAT Are You?)

3 Brand Response (WHAT About You?)

User ProfilesPurchase and Usage SituationsPersonality & ValuesHistory, Heritage, & Experiences

Brand Characteristics & Secondary FeaturesProduct Reliability, Durability & ServiceabilityService Effectiveness, Efficiency, & EmpathyStyle and Design; Price

Category IdentificationNeeds Satisfied

4 Steps to Brand building

1.1. Identify Identify the brand with customers based on need or product class

2. Brand MeaningMeaning in the minds of customers by linking tangible &intangible to the brand

3.3. ResponseResponse

4.4. RelationshipRelationship

Brand Pyramid

1. Identity i. Salience -• Category

Identification • Need Satisfaction

Brand Pyramid

2. Meaning i. Performance – Product Reliability,

durability, serviceability

Service effectiveness, efficiently, empathy

Style & design Price

Brand Pyramid

2. Meaning ii. Imagery-

User profiles

Usage situations

Personality & Values

History & experiences

Brand Pyramid3. Response i. Judgments-

• Quality• Credibility• Consideration• Superiority

ii. Feelings-• Warmth• Fun• Excitement• Security• Self Respect• Social Approval

Brand Pyramid

4. Relationships i. Resonance-• Loyalty• Attachment• Community- Apple,

Harley Davidson• Engagement –

clubs-Gang of Girls, MTV, WOM by customers themselves

Building Customer-Based Brand Equity

1. Brand building tools and objectives

2. Consumer knowledge effects

3. Branding Benefits

1. Brand building tools and objectives

Choose Brand Elements

Brand name

Logo

Symbol

Character

Packaging

Slogan

Memorability

Meaningfulness

Likability

Transferability

Adaptability

Protectability

Brand building tools and objectives

Developing Marketing Programs

Product

Price

Distribution Channels

Communications

Tangible and intangible

benefits

Value Perceptions

Integrate “Push” & “ Pull”

Mix and match options

Ref: Strategic Brand Mgmt. – Kevin Kelly

Brand building tools and objectives

Leverage on secondary associations

Company

Country of origin

Channels of Dist.

Other Brands

Endorse or

Event

Awareness

Meaningfulness

Transferability

Consumer Knowledge Effects• Brand Awareness

– Depth• Recall • Recognition

– Breadth• Purchase• Consumption

• Brand Associations– Strong

• Relevance• Consistence

– Favorable• Desirable• Deliverable

– Unique• Points of parity• Points of difference

Possible outcomes• Greater Loyalty• Less vulnerability to competitive marketing

actions and crises• Larger Margins• More elastic response to price decreases• More inelastic response to price increases• Greater trade cooperation and support• Increased marketing communication efficiency

and effectiveness• Possible Licensing opportunities• More favorable brand extension evaluations

Managing Customer Brand Equity

1. Define Brand hierarchy

2. Define Brand- Product mix

3. Enhance Brand Equity over time

4. Establish B.E. over market segments

Managing Customer Brand Equity

• Define Brand hierarchy

– Principle of Simplicity– Principle of relevance– Principle of

differentiation– Principle of

prominence– Principle of

commonality

Managing Customer Brand Equity

• Define Brand- Product mix

– Brand extensions– Brand Portfolio

Managing Customer Brand Equity

• Enhance Brand Equity over time

A. Brand Reinforcements

B. Brand revitalization

Managing Customer Brand Equity

• Establish B.E. over market segments

– Identify differences in consumer behavior

– Adjust Branding program