Brand equity

LeRoy James Ebert

Brand Equity

• Is a set of brand assets and liabilities linked to a brand

• “Brand Equity” refers to the value of a brand. Brand equity is based on the extent to which the brand has high brand loyalty, name awareness, perceived quality and strong product association. Brand equity also includes other “intangible” assets such as patents, trademarks and channel relationships.

Brand equity model by Dibb, Simkin, Pride & Ferrell

Brand Equity

Brand loyaltyBrand name awareness

Perceived brand quality Brand associations

Brand loyalty

• “Brand loyalty” is a measure to the attachment that a customer has towards a brand.

• It reflects how likely a customer will be to switch to another brand, especially when that brand makes a change in price or in product feature.

Customer loyalty ladder

Prospect

Customer

Client

Supporter

Advocate

Strategic value of Brand loyalty

• Reduce marketing cost

• Trade (channel distribution) Leverage

• Attracting new customers

• Positive word of mouth

• Competitive advantage

Enhancing band loyalty

• Treat the customer right (don’t do anything that you do not like done to yourself)

• Stay close to the customer

• Measure/manage customer satisfaction

• Create switching costs

• Provide extras (under promise and over deliver)

Brand awareness

• Is the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category

Brand awareness hierarchy

• Top of the mind recall

• Brand recall (aided recall)

• Brand recognition

• Unaware of a brand

Value of brand awareness

• Better chance of building loyalty

• Anchor to which other associations can be made ex. Brand extensions

• Easier to market

• Brand to be considered – customers tend to consider known brands to unknown

How to achieve brand awareness• Be different, memorable involve a slogan

or jingle, symbol/logo exposure, publicity event sponsorship

• Vertical soccer

• Shaolin football

Perceived quality

• The customers perception of the overall quality or superiority of the product or service with respect to its intended purpose, relative to its alternatives. Perceived quality is a perception by its customers

What influences perceived quality

• Performance

• Features

• Reliability

• Durability

• Serviceability

• Fit and finish

What influences perceived quality of service

• Appearance

• Reliability

• Empathy

• Competence

• Responsiveness

The value of perceived quality

• Gives Reason to buy

• Price premium

• Differentiate/position

• Channel members interest

• Brand extensions

Brand Association

• A brand association is anything “linked” inthe memory to a brand

• Mc Donald's can be linked to a character such as Ronald Mc Donald, a consumer segment such as kids, a feeling such as having fun, a product characteristic such as a service or a symbol such as the golden arches

Some type of associations

• Product attributes – apple iphone

• Customer benefits – Sony’s quality

• Relative price – Maruti, SPC medicine, Or Designer Fragrances

• Lifestyle/personality – Ferrari for sporty guys.

• Celebrity – Beckham to adidas

• Use/application – Siddalape

The value of brand associations

• Helps Differentiate

• Reason to buy

• Create positive feelings

• Helps process retrieve information

Maintaining associations

• Be consistent over time – ex. Maruti selling high value cars or using Sharuk Khan to promote Maruti

Thank You