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A brand is a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.”

Name

Term Symbol

Design

Combination

Identifies

product/service

of seller and

differentiates from

competitors

Sign

A Brand Is……….

It is type of product manufactured by a particular company under a particular name.

Brands are used in business ,marketing and advertising.

Consumers may evaluate the identical product differently depending on how it is branded.

Consumers learn about brands through past experiences with the product and find out which brands satisfy their needs.

Simplify decision making and reduce risk.

The Role Of BrandConsumers

Identification of the source of productAssignment of responsibility to product makerRisk reducerSearch cost reducerSymbolic deviceSignal of qualityThe power of the brand lies in what customers have seen, read, heard, learned.

ManufacturersMeans of identification to simplify handling or tracingMeans of legally protecting unique featuresSignal of quality level to satisfied customersMeans of endowing products with unique associationsSource of competitive advantageSource of financial returns

Brand equity is the added value that endowed to products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share and profitability that the brand commands for the firm. Brand equity is an important intangible asset that has psychological and financial value to the firm.

Brand equity creates value for customer and firm.

Brand equity assets can help customers interpret, process and store huge quantities of information about products / brands

It can affect customers’ confidence in purchase decision

Brand Equity creates shareholder value.

Brand Equity management creates an array of growth opportunities for the business.

It helps in increasing the overall profits of the firm .

The brand is viewed from the perspective of the customer, an individual or an organization.The power of the brand lies in what customers have seen, read, heard, learned, thought and thought about the product over time.A brand is said to have positive customer brand equity when consumers react favorably to a product.A brand is said to have negative brand equity if consumers react less favorably to the product.

Brand equity

• Loyalty (price premium, satisfaction).

• Perceived quality (popularity).

• Association (brand personality, organizational association).

• Awareness (brand awareness).

• Market behavior (market share).

LoyaltyPrice Premium: A basic indicator of loyalty

is the amount a customer will pay for a product in comparison to other comparable products. A price premium can be determined by simply asking consumers how much more they would be willing to pay for the brand.

 Customer Satisfaction: A direct measure of

customer satisfaction can be applied to existing customers. The focus can be the last use experience or simply the use experience from the customer's view.

Perceived Quality and Leadership Measures Perceived Quality is one of the key dimensions of brand equity and has been shown to be associated with price premiums, price elasticity’s, brand usage and stock return. It can be calculated by asking consumers to directly compare similar brands.

  Awareness Measures Brand awareness reflects the salience of the product in the consumer's mind and involves various levels including recall, brand dominance, and brand knowledge and brand opinion.  

Market Behavior Measures Market Share: The performance of a brand as measured by market share often provides a valid and dynamic reflection of the brand's standing with customers.

 

CUSTOMER BASED BRAND EQUITY PYRAMID

BUYER CLIENT BASED

POTENTIAL MARKET

Brand equity for products with short product life cycle

CHALLENGES FACED BY THE COMPANY 4 Ps of Marketing. Time factor. Changing consumer preferences. Competition. Uncertainty. Hype and curiosity. Pricing strategies.

BENEFITS OF BRAND EQUITY

Strong brand names simplify the decision process and reduce risk.Brand names are used to maintain higher awareness of products.Company’s use brand equity to gain leverage when introducing new

products.The brand name is often interpreted as an indicator of quality.Strong brand equity insures that your products are considered by

most buyers..Higher brand name equity leads to greater loyalty from customers.Strong brand equity is the best defence against new products and

new competitors. Improvements in brand equity lead to higher rates of product trial

and repeat purchasing due to buyers' awareness of your brand, approval of its image/reputation and trust in its quality.