BRAND EQUITY AND EVALUATING TURKISH BRANDS

8/3/2019 BRAND EQUITY AND EVALUATING TURKISH BRANDS

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INTRODUCTION

Companies and individuals are in business with their brands in globalizing world.

Instead of them brands are in competition now. Brands are in front of us every moment of

our lives is still a closed box. Brands that benefit both entrepreneurs and companies in

many ways (psychologial, financial, marketing etc.) is quite necessary to examine.

Most important factor in selecting this concept as a graduation project was that it

can not be ignored the importance of brand and branding. Because of that brand will

generate first part of this project. Besides, during the research, as well as seeing that

building brand is essentially how long, complex and arduous process and always came

across the concept of brand equity in this process which become most important part in

building brand. All the characteristics (awareness, loyalty, image, and quality) that make it

brand are consisted and evaluated in this concept so in second and main chapter of this

project will examine in this subject.

However, despite turkish brands have all features of brands and fulfill the

requirements, can not get a place among worlds most valuable brands is eye -catching. Due

to this situation I will examined this problem and reasons in last chapter of project.


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CHAPTER ONE

BRAND AND BUILDING BRAND

1. 1. BRANDING IN A HISTORICAL PERSPECTIVE

The process of branding has been around since the cavemen first painted the walls

in the history of mankind. The oldest paintings in history on the walls of the Lascaux Caves

in France date back to 15,000 B.C. and these bison paintings are marked also by handprints

as a form of ownership declaration. The marking of craftwork with seals for ownership and

quality claims was a common practice in ancient civilizations. Egyptian, Roman, Greek,

and Chinese consumers knew not only who to praise and make repeat purchases from, but

also who to blame if there was a problem with the product (Perry, Wisnom 2003, p.1).

In 1266, in order to make tax collection easier, England passed the BakersMarking Law, which required the bakers to stamp bread loaves in order to indicate origin

(Perry, Wisnom, 2003, p.2). Besides artisan guilds engaged in commerce started to avoid

interference their goods with lower level goods for both theirselves and their buyers

(Yamankaradeniz, 2007, p.11). This was also the time when spirit makers were required by


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customs and excises to burn their oak barrels of Scotch whisky with a hot iron symbol. No

more than literate audience, have led to in form of symbols the formation of these signs

(brands).(Yamankaradeniz,2007,p.11). These practices were considered to be among thefirst modern occurrences of commercial branding (Perry, Wisnom, 2003, p.2).

Historians often pinpoint the Wedgwood & Bentley brand of luxury china in

eighteenth century Britain as one of the first successful brand creations during the era of

industrialization. Wedgwood & Bentley, with their catalogues and showrooms that are

designed to convey a sense of shoppingexperience, seemed to have foreseen the approach

of contemporary brand management. They have created a high status image around their

product through a successful marketing campaign by which they constructed a link betweentheir products and aristocracy. This brand image they have created allowed Wedgwood &

Bentley to charge premium prices for their products, establishing the concept of brand as

much more than just identifying the material qualities of a product (Arvidsson, 2006, p.66).

After the industrial revolution altered the way of consumption by introducing mass

production which made available the products that were once unavailable to masses,

branding became more important as it was the only way for the consumer to differentiate

between an ever increasing numbers of similar products. By the end of the nineteenth

century sellers started to promote their branded products through full page advertisements

in newspapers (Strasser, 1989, p.90). This was the start of the communication between the

firm and the consumer. Fast forward a century and this one-way communication has

become a full-fledged orchestra, whereby the authors of brand stories continuously co-

create the brand, which became not only a product or service but also a vessel for

constructing and maintaining self identity and social relationships (Yeniciolu, 2006, p.9).

Therefore, brands and their symbolic aspects have been a part of human life since

the caveman first painted the walls and they have been becoming more essential in

everyday life since then.


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1.2. UNDERSTANDING BRAND CONCEPT AND DEFINITIONS

Apparently; everyone is talking about what is brand? or what is not a brand?

Today brand became the most popular used word but when we ask the any person about

definition of brand, we receives varies answers. Some people think that brand is a name or

commercial issue and some of them thinks that it is a product moreover a commitment

(Knapp,2000,p.5). Lets see the who thinks in what way?

Historicaly brand; distinguising a manufacturer's goods and services from others,

defined them and born in need to specify the ownership and ancient has been existing since

ancient time. Brand comes from in old Scandinavian literature brandr word which meansto burn and was used between 1150-1350 years.(Blackett T. ,Board B. ,1999. p.2).

Because in those times people signed on animals by burning their skins to get to know and

to distinguish their own animals (Gezer D., 2006, p.4).

Biggest part of brand definitions seems in literature, based on American Marketing

Association (1960) s definition that doesnt consider benefits of brand to consumers and

as the basis for the differentiation of business and product-oriented approach emphasizes

the importance of the visual characteristics (Gezer D., 2006, p.4).

According to this traditional definition brand is; A name, term, design, symbol, or

any other feature that identifies one seller's good or service as distinct from those of other

sellers. The legal term for brand is trademark. A brand may identify one item, a family of

items, or all items of that seller. If used for the firm as a whole, the preferred term is trade

name.(AmericanMarketingAssociation-http://www.marketingpower.com/Pages/default.aspx)

Random House Dictionary of The English defines brand as a named after thewell-known trademark as the product or service.
http://www.marketingpower.com/Pages/default.aspxhttp://www.marketingpower.com/Pages/default.aspxhttp://www.marketingpower.com/Pages/default.aspx


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To Leslie De Chernatony ; Brands are intangible assets that delight customers,

glue organisations, reward shareholders, enhance the profitability of distributors, give

meaning to employees, stretch corporations and benefit society. (Gezer, 2006, p.4).

Marty Neumeier thinks about; brand is; a persons gut feeling about a product,

service or company. It is a GUT FEELING because we are all emotional intuitive beings,

despite our best efforts to be rational. It is a PERSONs gut feelings because in the end the

brand is defined by individuals not by companies, markets, or the so-called general public.

Each person creates his or her own version of it. While companies cant control his process,

they can influence it by communicating the qualities that make this product different than

that product. When enough individuals arrive at the same gut feeling, a company can besaid to have a brand (Neumeier, M. 2003, p.2).

According to; Philip Kotler A brand is a name , term, symbol , or design , or a

combination of them , intended to identify the goods or services of one seller or group of

sellers and to differentiate them from those of competitors (Kotler,P.,2008, p.443, Lamb,

Hair, McDaniel, 1998, p.297).

For Peter Farquhar ; Brand is a name, term ,symbol or design that inceases valueof a particular product or service beyond the functional purpose thus provide value for

organization, trade and consumers. With this definition Farguhar has been one of the

authors who denote relation between brand and value added size (Gezer, 2006, P.5.).

After all different definitions; basically brand is a form of self-expression alright

with product to consumer. Quality is one of the most effective weapons used by the brand

while expressing themselves. Quality is one of the most effective weapons used by the

brand while expressing themselves. Consumers directed towards products and brands thatprovided maximizing benefits in the moment of consumption (Yamankaradeniz, 2007,

p.10). Ask consumers to describe a branded product, and they will not usually reply with

descriptions of terms, symbols, and designs. They will reply with adjectives describing the

qualities of the brand. Moreover, as any international market researcher will testify,


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consumers around the world are remarkably consistent. Brands are recognized and

understood on an emotional level, in a way that most of their founders would find

astonishing (Arnold, 1992, p.2).

1.3. FEATURES OF BRAND

Everyday and everywhere we face with brand for every kind of goods and

services. Sometimes we use brand name for any product instead of their name. For

instance; when we need tissue paper ,ask people as a Selpak but Selpak is a brand name not

goods name so being brand has some features and we will see approaches about the

features of brand in this part.

For Keller; brand has following features:

1- Brand provides benefits that consumers desire.

2- Brand worthes spent labors.

3- Pricing strategy is based on consumers' perceptions of value.

4- Brand is positioned in best way.

5- Brand is consistent.

6- Brand coordinate a lot of marketing activity in order to create brand equity.

7- Administrators know how brand is worth for consumers.

8- Brand has greate support in a long term.

9- The company monitors sources of brand equity (Karacan,2006,p.11).


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Developed by Global advertising agency Young & Rubicam and successfully

created a strong brand and brand that provides businesses with the permanence of

investigating the differences between businesses that failed in this, for that 35,000 markthroughout the world for 30 years has been examining a model that is based on a study of

Young and Rubicam Brand Asset Valuator releaved that consist 4 basic elements.

Differentiation, conformity, reputation, and knowledge. Most important feature of strong

brands is having differentiate position from competitors in market and having a product that

provided much more benefit from desired. Secondary most important feature of brand is

showing compliance to customers wishes, needs and lifes. Third one is brand reputation

which express that customers respect to their brand and found it important to them, as well

as the perceipt popularity and market acceptance and quality. Last one is knowledge which

is result of differentiation, expression of consumer brand and brand promises knows

meaning and shows size of existence of consumers mind (Champell, 2002, p.214).

According to Aaker there is 5 important features that strong brands need to have ;

brand identity that differentiate brand clearly from the others, A business brand that reflects

the relationship with social responsibility, conducting an integrated and continuous contact

with the brand image, customer relations that provide convenience customers to

identifiying with organizations, symbols and slogans that help to create strong brand

personalty and perceived quality with supporting strong brand identity and create positive

associations (Aaker,1992, p.57-58).

1. 4. POWER OF BRANDS

Branding has big power in industry that is the why every organizations wantsbranding on their name, on their product or service. Thanks to brand they get attention

consumer minds and have good place in their buying decision also brand has a noticable

power in global perspective.


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Branding has been so successful that companies are now replacing corporate

visions and missions with brand visions and missions (Temporal, 2002, p.6).

Brands are established as one of the most important driving forces of the

globalization phenomenon as they are present in all of these flows at once. Brands, not only

travel globally through technoscapes, but also through people who are using them; they

facilitate the flow of money in a global sense; and their symbolic meanings are

disseminated in landscapes of images (Yeniciolu, 2006, p.18).

In order to portray the scale of globalization of brands in the contemporary

marketscape one can look at some of the numbers the Worldwatch Institute has published

in their website.

McDonalds operates 30,000 restaurants in 119 countries and serves 46 million

customers each day. Its total revenue was $15.4 billion in 2004. On opening day in Kuwait

City, the line for the McDonalds drive-through was 10 kilometers long.

Siemens, the German manufacturer of mobile phones, computers, medical

supplies, lighting, and transportation systems employs 426,000 people and is represented in

190 countries. In 2002, Siemens net sales amounted to $96.4 billion, of which 79% were

international.

Coca-Cola sells more than 300 drink brands in over 200 countries. More than

70% of the corporations income originates outside the United States. Coca-Cola employs

60,000 people in Africa alone.

Another successful example for showing power of brand in globally is Yahoo!,

which was able quickly to build its brand on the benefit of providing transparency as an

Internet guide. Today Yahoo!, in its own words, is The only place anyone needs to go find

anything, communicate with anyone, or buy anything. (Error! Hyperlink reference not valid.,

.231)


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The power of brands, and the difficulty and expense of establishing them, is

indicated by what firms are willing to pay for them.(Aaker,1991,p.8). The marketing battle

will be a battle of brands a competition for brand dominance. Business and investors willrecognize brands as the companys most valuable assets. This is a critical concept. It is a

vision about how to develop, strengthen, defend, and manage a business(Aaker,1991,p.1)

The Brand consultancy Interbrand routinely publishes a list of the top 100 global

brands by valuation. The leader today is Coca-Cola with a brand worth of nearly $70

billion, which accounts for more than 60% of its market capitalization. Halfway down the

list is Xerox with a brand valuation of $6 billion__a whopping 93% of its market

cap.(Neumeier,2003,p.12) It will be more important to own markets than to own factories.The only way to own markets is to own market-dominant brands (Aaker,1991,p.1).

There were several key factors shared by the high-ranking brands, regardless of

their having a luxury or mass-market positioning. Many strong brands did not share every

one of the factors listed, but they serve to characterize and differentiate the stronger name

from the weaker ones. None of these factors, taken in isolation, can be considered a new

finding, but careful attention to maintaining these brand characteristics, as a group, is

crucial to a brands continuing success. Specifically, we consider the following factors to

have the most influence on power of a brand (Aaker, Biel,1993, p.16) :

Longevity : Being around for a long time helps.Being the first to enter a category is even

better.Many of the brands occupying positions in the top 100 in a given market have been

there for 25 to 50 years, or even longer. Brands that have maintained a consistent presence

over the years are better able to utilize the familiarity and understanding a customer has

with their products to build momentum and power.

Product Category : Some product categories are simply more involving than others. They

tend to create higher awreness of the offerings and often higher esteem.Thus, a brands

product or service category can be a great help or hindrance in its overall power .


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Quality: Although this factor may seem obvious, this study reminds us that quality and

reliability are at the base of every brands credibility with the public.Whatever else a

company or product stands for, it must first do what it is supposed to do. It should benoted, however, that quality is not necessarily synonymous with luxury. Some prestige

products such as Mercedes-Benz and Rolex did rank high on the list whereas other luxury

brands like Cadillac and Yves St. Laurent did not do very well.

Media Support: The brands ranked highest in share of mind generally spend the Money to

make sure they stay visible. A brand such as McDonalds with its retail ubiquity, gains

visibility through a strongly branded pysical location in addition to its massive advertising

budget.

Personality and Imagery: Ideally a brand should do more than just identify the product.

Many of the most powerful brands in survey have clear enough images to become almost

synonymous wtih their product category, or are able to diffrentiate their offering on the

basis of the brand name alone. Disney managers to brand a form of entertainment. Strong

brands usually stand for something in the minds of customers.

Continuity: The key here is continuity of message, not sameness of execution. We can see

examples of strong message continuity in how McDonalds evolves its advertising slogans

from one campaingn to the next.

Renewal: The opposite side of the coin is also true. Strong brands must constantly renew

themselves, making themselves relevant to each new generation of consumers.

Efficiency: Companies that operate in a wide variety of product categories have several

options for branding their product families. This is an extremely powerful means of

creating leverage, either in extentions of existing brands or to enter new product categoriesvia the parent brands estabished credibility (Aaker, Biel,1993,p.16).


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As you see until know a strong brand has many power in many ways.Why firms

make a brand building strategy ? and How that power can show itself to organization with

advantages or disadvantages? These are indicated like following;

1.5. ADVANTAGES OF BRANDS

It increases brand loyalty and sales regularly

Direct consumers perception

Make easier to apply strategies of Product differentiation, brand extentiton, home

brand and subbrand, and provide extra benefit and extra profit opportunities.

Make easier to enter new markets so this provides gain a strong economies of scale

to organizations.

Contributing to the institution's image in society will help to develop positive

attitudes towards the firm. Adds prestige to the firm in terms of public opinion, and

other business environments.

Create an important and permanent competitive advantage. prolongs the life of the

company and its products With the facilitating communication between consumer and brand, give eficiency of

marketing activities.

Due to increases price flexibility, increase companys long term profitability.

It provides protection in both legally and consumers mind to brand.

Constitute the most important capital element of the business (zgl, 2001, p.130).

1.5.1. Advantages of Brand In Globally

The advantages associated with global branding can be cited as economies of

scale, economies of scope, customer recognition, uniform worldwide image, power and

scope leverage with retailers, potential for extensions, and much better international legal


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and trademark protection The most significant reason behind global branding is the desire

of firms to achieve economies of scale. Economies of scale can be achieved on the

production side by decreased average unit costs, and in marketing and advertising byaligning spending behind a limited number of brands, only having to produce one ad for

each medium, as opposed to many. Other than economies of scale, economies of scope can

be achieved through global brands. Economies arise from the joint use of production

facilities, equipment, cash, investments, relationships with stakeholders, and brand names

across countries and markets. Customer recognition, tied directly to brand equity concept is

also very important for marketers. A global brand profile communicates credibility to

consumers, an indication of manufacturers expertise and acceptance. A strong consistent

image across multiple countries can be a valuable asset that increases brand value, equity,

power, and scope. This customer recognition leads to consumer inclination to buy these

brands, which leverages the power of manufacturers against retailers. Manufacturers that

expand beyond their national borders are powerful against retailers who want to have

approximately the same mix of merchandise that consumers ask for. Finally, global brands

and their brand equity provide a solid platform for manufacturers from which to make

brand and line extensions (Eren-Erdomu,2005,p.43).

1.6. DISADVANTAGES OF BRAND

Despite all benefits of building brand, because it requires in terms of including

long-term activities, an intensive knowledge, creativity and insight it is a difficult task and

have risks. In practice twenty-seven of the ten brands have failed accepted by a real that

carries the risk of brand building obvious. On the one hand that risk covers because of can

not operating the process as suppose to be can not be able to build a strong brand, or on the

other hand, can be about partial loss or completely loss of a strong brand because of making

mistakes during the applications. But another way to gain permanent success in the

competitive process is also a fact (zgl, 2001, p. 130-131).


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1.6.1. Disadvantages of Brand In Globally

The disadvantages associated with global branding are insufficient local

responsiveness, demotivation of country managers, management difficulties, and consumer

activism directed at global brands (Eren-Erdomu, 2005, p.44). Even though global brands

provide economies of scale, they may not always meet local tastes, what makes them

unlikely to be bought no matter how low their cost is. Consumer behavior in terms of

consumer needs, wants, and usage patterns are fundamentally different with respect to

many product categories. Therefore, most global companies pursue a global and a local

strategy at the same time. For example, Coca Cola, as one of the leading global brand

develops brands for specific country markets along with Coca Cola to meet local tastes(Vrontis, Sharp, 2003, p.3). Additionally, consumers differ in terms of their attitudes and

opinions concerning marketing activity, such as general attitudes toward advertising, price

sensitivity, promotion responsiveness, and sponsorship support. Demotivation of the

country managers is a second important problem. Country managers become demotivated

by centrally receiving most of the direction from the headquarters and in time start to show

resistance or lack of follow through. This might leverage the problems associated in local

markets. Finally, global branding requires extensive control and coordination of the local

branches, which is not an easy process. However, later developments in technology and

availability of global media opportunities have facilitated the control process. Differences

in infrastructure of the countries, marketing institutions, and legal environment may equally

affect the global branding process in a negative way (Eren-Erdomu, 2005, p.44).

Finally, it worth mentioning the disadvantages for global brands associated with

anti-American, anti-globalization movements, terrorist attacks, and consumer activism.

Increasingly, buildings and staff of powerful, global brands have become targets of anti-American, anti-globalization movements since they are viewed as the metaphors of a global

economic system mainly dominated by the US talked about the pay and conditions of

developing countries workers that work for big MNCs with global brands such as Nike,

Shell, Wal-Mart, Microsoft, Mc Donalds. There are also antiglobal challenges to the


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global brands and firms because of their abuse of especially the developing countries and

customers. The worlds customers are believed to be at a disadvantage of being served by

the same few global corporations, the same fast-food restaurants, hotel chains, and clothingchains. The global monoculture, as a result of this process, is believed to be debasing the

cultures of the developing countries. The intellectual property rights and uniform pricing of

global brands reduce the poor countries access to knowledge in genetics, health,

agriculture, education, and information technology. There is also the obesity epidemic

because of fast-food eating, and genetically modified food danger. Finally, there is the

environmental pollution problem especially because of the continuous relocation of

manufacturing facilities from richer to poorer countries to take advantage of laxer

environmental regulation and law enforcement there. All of these events are creating

antiglobalization critics. Hence, the consumer activism turned its face from the

governments to the owners of these multinationals. Bombing and terrorist attacks are

posing danger not only to the staff, buildings and equipment, but also to the brand image of

the global brands. Some MNCs such as Unilever, therefore do not identify their corporate

brand to the public and use a variety of subsidiary names so that consumer activist groups

do not charge them with too many brands and too many products. (Eren-Erdomu, 2005,

p.45)

I.7. IMPORTANCE AND NECESSITY OF BRANDS

Brands are everywhere! It is estimated that the average American is exposed to

2100-2400 different brands every day. Why is branding so pravalent? With increased

technological capabilities enabling competitos to market extremely similar goods and

services, a brand is often a products most important distinguishing characteristic and may

be the only part of the product a competitor can not copy (Kinnear, Bernhardt, Krentler,

1995, p.293). Building a brand just means communicating your message to them more

effectively so they immediately associate your business with their requirements. Brands can


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help increase turnover by encouraging customer loyalty and are particularly useful if you

are in a fast-moving sector. If your business's environment changes rapidly, a brand

provides reassurance to customers and encourages their loyalty (Green Communications,2006, p.2).

One of the truths of modern business is that there is almost nothing that your

competitors can't duplicate in a matter of weeks or months. If you have a great idea, you

can be certain that somebody will copy it before long. And not only will they follow your

lead, but they may also be able to do a better job or sell the product or service at a lower

price. The question then becomes, "What competitive edge do I have to offer that cannot be

copied by anyone else?" The answer? Your brand.

Creating a strong brand identity will build mind share one of the strongest

competitive advantages imaginable. As a result, customers will think of your business first

when they think of your product category. For example, when you think of tissues, more

likely than not, you think of the Kleenex brand. And when you're looking for tape to wrap a

present, Scotch is the brand that springs to mind. Likewise, when your child wants a

hamburger, he will often say he wants to go to McDonald's. The reason behind these strong

brand-product associations is that these companies have built rock solid brand identities.

That value is often called brand equity, or the worth of the brand. Brand equity,

unlike other abstract marketing notions, can be quantified. For instance, if you owned the

Marlboro Company and wanted to sell it, you would begin to value the firm by looking at

the assets tied to the Marlboro brand. You would then identify the cost of the factories,

patents, trucks, machines and staff." They are worth a small fraction of what you can sell

that brand for," says Kosgrove. "The value of that brand is huge compared to those actual

physical assets."

The importance and value of branding becomes apparent when an entrepreneur

wants to sell his or her company or take it to Wall Street for a public offering or other


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infusion of capital. It is often the brand that a business owner has to sell in such cases

(http://www.va-interactive.com/inbusiness/editorial/sales/ibt/branding.html, 15.04.2011).

With the dawn, during the mid 1990s of the Age of Intellectual Capital, came the

realization that the real wealth in the modern enterprise is located in the intangible assets of

that enterprise and not in the traditional (tangible) assets such as real estate, plant,

equipment, inventory, cash, and the like. To understand the importance of these intangible

assets, we need only look at the market capitalization of many of todays most successful

corporations, or at the prices paid well beyond conventional assets in recent mergers and

acquisitions (Dvrovin, Moore,2001,p.2).

Consider Microsoft. In 2000, with a market capitalization of over $423 billion,

Microsoft reported revenues of only $23 billion! If we check its balance sheet, and add its

stated conventional assets of $52 billion to its annual revenues, we are still left with $348

billion worth of market cap of unspecified value? What accounts for this $348 billion?

Experts agree this represents Microsofts intangible assets or Intellectual Capital. These

days, on average, the intangible assets in many successful organizations are worth more

than their traditional assets plus annual revenues. A simple index of all the elements of

Intellectual Capital, is the Brand. The Brand has become the distillation, as Brand Equity,

of most intangible assets and the Intellectual Capital wealth that an enterprise has created

over time. Considering this, we can see why the Brand has moved to the center of

corporate strategy. Increasingly, it is becoming one of the most valuable assets in the

enterprise. Furthermore, it is a primary strategic asset as regards both competitive strategy

and sustainable competitive advantage (Dvrovin, Moore,2001,p.2).

As we realize this largely unrecognized role of the Brand, our paradigm shifts,

and the Brand, which we thought was, at best, the concern of the VP of Marketing, now

understood as Brand Equity, becomes the ongoing concern of the CEO and the entire

executive team. If the Brand is the central Intellectual Capital asset, then a Brand Strategy

is essential to managing that asset effectively. In the absence of such a unique position, we
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are not either leveraging our Brand Equities into new wealth or commanding an

orchestrated, sustainable, competitive advantage upon which to build reliable long-term

success. Consider that your Brand may be your most valuable corporate asset, and the assetyou can most uniquely and powerfully leverage into a sustainable competitive advantage

(Dvrovin, Moore,2001, p.2).

Figure 1: Source: Dvrovin, Moore,2001,p.2


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1.8. BENEFITS OF BRAND

The concept of brand offers several benefits both businesses and customers

including the functional and emotional dimensions. These benefits that brand offers to

customers, businesses raises added value (Gezer, 2006, p.12,13).

A brand more than a set of attributes. Customers are not buying attributes; they are

buying benefits. Attributes need to be translated into functional and/or emotional benefits.

The attribute durable could translate into the functional benefit, I wont have to buy a

new car every few years. The attribute expensive might translate into the emotional

benefit, The car helps me feel important and admired The attribute well built mighttranslate into the functional and emotional benefit, I am safe in case of an accident.

(Kotler,2008,p.443).

A brand signals to the customer the source of the product, and protects both the

customer and the producer from competitors who would attepmt to provide products that

appear to be identical (Aaker, 1991, p.7).

If we examine benefits of brand that requires time, large capital, and intensice

effort to creation in three groups. These groups are organizsations, consumrs and

community (Karacan, 2006, p.18).

1.8.1. Benefits of Brand for Consumers

Heavy competitive conditions, changing consumer features push manufacturers to

create and have a strong brand. Creating a strong brand loyalty and protect existingcustomers are business problem and due to main problem of marketing communications.

Branded products give the customers confidence and thus as a result buying familiar

product helps to spend less time on their purchases. If they are presented as a brand,

consumers dont deal continuously with re-evaluation process, because they have an


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appreciation about branded products. Branded products are used by consumers in

reinforcing their personality characteristics, having to be accepted in society or in order to

obtain a feature which is not seen in use. Besides brand gives consumers a reputableidentity with its value (Karacan,2006,p.18).

1.8.2. Benefits of Brand for Businesses

The longer continue the existence of product in the market has been the at that

time business to get the chance to lift and place in consumer's memory. A such as strong

brand provides a platform for the company's new products, it also increases brand strength

and resilience against the competitive attacks (Karacan, 2006, p.19).

Benefits of creating brands in terms of business are as follows:

Making price increases with taking advantage of the brand power,

A higher profit margin,

Keep consumers away from other brands,

Reflect a positive image of the brand to other products,

This company has a respected and recognized brands make a strong in the financial

position,

Increases customer loyalty,

Facilitate solves any crisis during the crisis.

The biggest benefit of brand provides companies with differentiating the goods

and services that it promised something different to consumers from they see everyday

(Karacan, 2006, p.19).

The brand has a complex identity and there are many points of contact between the

consumer and the brand. Because the brand equals the company, all stakeholders must

perceive the brand (company) in the same fashion. The company can no longer present one


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image to the media and another to stockholders or consumers. Communications from the

firm must be integrated throughout all of their operations. Communication is not, however,

unidirectional. It flows from the consumer to the firm as well as from the firm to theconsumer so that a dialog is established between the two (McEnally, Chernatony, 1999,

p.2)

1.8.3. Benefits of Brand for Society

Businesses understand best way to creating a successful brand passed to meet

consumer needs, each passing day they take care to improving marketing strategies.

Growing with each passing day marketing activities of enterprises, in which their intense

competitive environment, competitors who do not want to stay behind all the businesses,

activities to develop and create a challenge for continuous innovation. Gradually with the

increase of the quality of the products, the market share of all enterprises that may lead to

an increase in the welfare of society.

This improvement in marketing activities, leads to the development of society and

now entering into foreign markets to fight with more powerful competitiors. Strong brands

are an extremely important factors can create to increase awareness of the country in

foreign markets, therefore the development of society and the development of the country.

Last ring of this growing development progress which started consumers shows itself

through community development ( Karacan, 2006, p.20).

1.9. EFFECTS OF BRAND ON CONSUMER PYSCHOLOGY

The relationship between brand and consumer can be seen as a kind deed or treaty.

The latest ans most profitable strategies are those that strengthen the relationship of the

brand with consumers, and then use this as the basis to drive the business forward and build


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brand value. Consumer insight plays a vital role here (Temporal, 2002, p.7).In this sense,

the brand is very important that the loaded value. Consumers offer trust and their loyalty

according to brand will act in certain ways and provide benefits with stable productperformance, pricing, promotion, and distribution programs and activities of a secret

agreement. Consumers are buying brands because they provide advantages and benefits as

long as they are satisfied with the extent and the consumption of the product will continue

to buy it (Kahraman, 2007, p.17).

The brand is very important for consumers to interact with and are regarded as

being close. Brands, a considerable effect on consumer decision-making process and

provides a guarantee that consumers would prefer products. Brands is seen as an indicatorof status and lifestyle as well as to meet consumers' needs (Deneli, 2009, p.96).

For consumers brand is a source of confidence combining the quality and values in

a manner consistent. A brand is a combination of objective and subjective characteristics of

product or service. Brand is more than a symbol or logo (Erci,Yaprakl, Can,

Ylmaz,2009,p.13). Brands represent consumers perceptions and feelings about a product

and its performance_everything that the product or service means to consumer. In the final

analysis, brands exist in the minds of consumers. Thus, the real value of a strong brand is

its power to capture consumer preference and loyalty (Kotler,Armstrong,2006,p.249).

Consumer choice brand and products that reflects personality, character, values (Erci,

Yaprakl, Can, Ylmaz, 2009, p.13).

Implementation of brand strategy usually focuses on creating (or enhancing )

visibility, brand assocations, and/or deep customer relationships. A brand such as Intel is

given credit for leadership, success, quality, and even excitement and energy, mostly

because of its visibility (Aaker, Joachimsthaler, 2000, p.262).

By examinig consumers attitudes and behaviors. In recent years it has gained

importance to determine brand product and service in which situation and feelings, when

and how they perceived. Consumers buy the brand, goods and service that desire to get


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maximum benefit. Therefore; evaluates brand and goods according to their perception and

maintains purchases in that way. Consumer perception, emotions, such as performance

quality may be in form of a symbolic image (Erci,Yaprakl,Can,Ylmaz,2009,p.13).

Brand creates motivation effect on human purchase behavior in positive or

negative way. For customer towards brand or sales point. Can be used the following

statement: A consumer was motivationed to remain satisfaid with a brand or dissatisfied for

another brand. Research on this subject suggests, consumers are not satisfied with 90%

moving away from that goods, brand or sale point in unresponsive manner. Motivation is

kind of accumulation. In this regard it can be said rewarded behavior is repeated. In this

case, if making an appropriate estimate for brand, it can be re-purchase. For these reasons,marketing managers need to make by a positive motivation to achieve to make a kind of

creation of positive brand image (Bikin, 2004, p.85).

Visibility have several components, including recognition (Have you heard of this

brand?), unaided recall (What brands do you know?), and top-of-mind status (What is

the first brand that comes to your mind?) in the customers buying process and brand

attitude structure. The relative importance of each will depend on competitive context

(Aaker, Joachimsthaler, 2000, p.263).

The really strong brands, such as Harley-Davidson and Saturn, have gone a step

beyond achieving visibility and differentiation to develop deep relationships with a

customer group_that is, the brand becomes a meaningful part of the customers life and/or

self-concept. When a deep relationship occurs, the functional, emotional and/or self-

expensive benefit will have a relatively high intensity. The customer will be highly loyal,

and he or she will be likely to speak to others about the brand, discussing merits and

defending shortcomings(Aaker, Joachimsthaler, 2000, p.264).

From customer points of wiev, brand make easier to purchase. Considering that

consumers shopping where there is no brands, due to can not evaluate truly that have

purchased they can not be sure about goods. When they can chose from branded products,


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easier to be sure product quality and purchasing the right product. Brands facilitate

customer selection process (Kahraman, 2007, p.16).

There are important functions of brands for customers. Brands defines source of

manufacturer and allow customers to assign responsibility for manufacturer or distributor.

Most importantly, brands have special meaning the consumers. Consumers get past

experiences with product and acquire informations about brands thanks to marketing

program in years. They learn which brand satisfied the needs and which does not satisfy.

As a result, brand provides practicality and simplicity in product decision (Kahraman,

2007, p.16).

Another way, brands occur expectations in consumer minds. Customers have

variety expectations from certain brands. If these expectations are met, a regular recipient

of the brand will come to the state. A survey of consumers found a brand they are looking

for the following features (Karacan, 2006, p.16-17):

high quality and reliability,

consistent performance,

brand familiarity, obtainability and compliance,

price-value relationship,

compliance with consumer personality,

to solve the problem of consumer,

customer service,

advertising.


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1.10. BUILDING BRAND

Brand building is much more than the responsibility of the marketing department

or even of the CEO, although both functions must participate actively in championing and

protecting the brand from within for the effort to succeed. Building and supporting a great

brand is everyones job from the CEO on down (Bedbury, Fenichell, 2002, p.XIII).

Branding poses challenging decisions to the marketer. Until know we discuss

almost everything about the brand and as we can understand building and managing brand

is hard and complex if we mention steps of building brand these are; brand positioning,

brand name selection, brand sponsorship, and brand development (Kotler, Armstrong,2006, p.250).

It has long been believed that the way to build brands was to follow the F.R.E.D.

model (Familiarity, Relevance, Esteem, and Differentiation)Most important part of the

F.R.E.D. concept was to make consumers familiar with a brands product and service

offering. It was successful in time of primary marketing activity. In sharp contrast, we now

live in era characterized by an overabundance of choices (Knapp, 2000, p.10).

In todays global marketplace, companies with successful brands understand what

business they are in. They know that first and foremost, they are in the service business.

Meeting customer service expectations will be the defining factor in distinguishing their

brand from competitorsin the eyes and minds of customers. Instead of F.R.E.D. , the

brand-building mindset should be D.R.E.A.M.Differentiation should be the first step if a

brand is to cut through the clutter in the marketplace and occupy a distinctive position in a

target audiences mind. After orderly comes relevance, esteem, awarenes, Mnds eye. Our

experience with clients reveals that when an organization has significantly differentiated its

brands products and services, public relations and other third-party endorsements can be

powerfull tools for building genuine brands (Knapp, 2000, p.13-14).


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According to Knapp, If you build it, they will come has always been a powerful

concept. Our belief is that if you create the right blueprint for a brand, its easier to achieve

the desired brand perception, and that more customers will come to that genuine brand.Enduring brands can give business more leverage than other asset, serving as an emotional

shortcut between a company and its customers. A differentiated, ownable brand image

can build an emotional and rational bridge from customers to a company, a product , or a

service (Knapp, 2000, p.102).

Markets are often characterized by extensive new product activity and the pace of

innovation is accelerating. For example, 1521 new consumer packaged goods (CPG) brands

were introduced to the United States in 2004, double the number of brands introduced in1997. Manufacturers use new brands to drive growth in otherwise stable environments, as

innovation is often envisioned as pivotal to the success of firms. However the performance

of new brands varies markedly across their roll-outs. In CPG markets, only 20% of new

brands earn more than $7.5 million in first year sales, and less than 1% enjoy revenues in

excess of $100 million (Information Resources Incorporated (IRI), 2005). Though essential

to firms overall performance, few new brands reach the status of an established brand; a

majority eventually fails. The IRI survey shows that failure rates have reached 55%

(Ataman, Mela, Heerde, 2007, p.1)

1.10.1. Points To Track While Building Brands

According to Aaker; building strong brands need and focus some steps these are;

1.Brand identity. Having an identity for each brand. Consider the perspectives of

the brand-as-person, brand-as-symbol, as well as the brand-as-product. We should

remember that an image is how you are perceived, and identity is how you aspire to be

perveived.


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2.Value proposition. Know the value proposition for each brand that has a driver

role. Consider emotional and self-expressive benefits as well as functional benefits.

3.Brand position. For each brand, have a brand position that will provide clear

guidance to those implementing a communication program..

4.Execution. Executing the communication program so that it not only is target

with the identity and position but achieves briliance and durability.

5.Consitency over time. Having as a goal a consistent identity, position, and

execution over time. Maintain symbols, imagery, and metaphors that work.

6.Brand System. Making sure the brands in portfolio are consistent and synergistic.

Know their roles. Having silver bullets to help support brand identities and positions.

7.Brand Leverage. Extending brands and developing co-branding programs only if

the brand identity will be both used and reinforced. Identifiying range brands and for each,

develop an identity and specify how that identity will be different in disparate product

contents.

8.Tracking Brand Equity. Track Brand Equity over time, including awareness,

perceived quality, brand loyalty, and especially brand assocations. Noing areas where brand

identity and position are not reflected in the brand image.

9. Brand Responsibility. Having someone in charge of the brand who will create

the identity and position and coordinate the execution over organizations units, media and

markets.

10.Invest in Brands. Continuing investing in brands even when the financial goals

are not being met (Aaker, 1996, 356-357).


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1.11. CHALLENGES AND NEGLECTS IN BRANDING

The nature of brand creation and development issue brings with it many

difficulties. This describes why businesses can not create brands, how they are unwilling or

fail in this regard (zgl, 2001, p.131). Aaker ranked brand building and development

challenges as follows ;

Toward that end eight different factors that make it difficult to build brands will be

discussed. The first, pressure to compete on price directly affects the motivation to build

brands. Second reason; proliferation competition reduces the positioning options available

and makes implementation less effective. The third and fourth reasons, the flagmentation inmedia and markets and the involvement of multiple brands and products, describe the

context of building brands today, a context that involves a groving level of complexity. The

remain reasons reflect internal pressures that inhibit brand building. The fifth reason, the

temptation to change a sound brand strategy is particularly indious because it is the

management equivalent of shooting yourself in the foot. The sixth and seventh reasons, the

organizational bias against innovation and the pressure to invest elsewhere, are special

problems facing strong brands. They can be caused by arrogance but are more often caused

by complaceny coupled with pride and/or greed. The final reason is the pressure for short-

term results that pervades organizations. The irony is that many of the formidable problems

facing brand builders today are caused by intenal forces ar biases that are under the control

of the organization (Aaker, 1996, p.27).

All these difficulties present by Aaker, present lowers the efficiecy of the brands

market. Therefore, a company which decide to build a brand should be structured to

overcome all these difficulties mentioned above (zgl,2001,p.131).


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Despite the often obvious value of a brand, there are signs that the building brand

process is eroding, loyalty levels are falling and price is becoming more salient. If we

indicate underemphasises on brand building;

Managers cannot identify with confidence the brand associations and the strength of

those associations.

Knowledge of levels of brand awareness is lacking.There is no feel for whether a

recognition problem exists among any segment.

There is no systmatic, reliable, sensitive and valid measure of customer satisfaction

and loyalty

There is no person in the firm who is really charged with protecting tha brand

equity.

The measures of performance associated with a brand and its managers are

quarterly and yearly. There are no long-term objectives that are meaningful.

There is no mechanism to measure and evaluate the impact of elements of

marketing program upon the brand. Sales promotions for example, are selected

without determining their association and considering thair impact upon the brand.

There is no long term strategy for the brand. The following questions about thebrand environmnt five or ten years into the future are unanswered, and may have

not been addressed: What associations should the brand have?, In what product

classes should the brand be competing?, What mental image should the brand

stimulate in the future? (Aaker, 1991. P.8-9)

During the chapter that is indicated all aspects of brand, faced with a notion in many times.

That is Brand Equity. To be a brand firstly we should generate brand equity in consumer-

minds and in financial position because of this, this notion which is important part of

building brand process, I will examine it in second chapter.


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CHAPTER TWO

BRAND EQUITY

2. 1. DEFINITION OF BRAND EQUITY

As you see during the first part building a brand is so large and complex process.Until now I tried to give you information generally from a broad perspective and in this

part I will explain brand equity which generate a large part of being strong brands.

Today, for businesses having creative and income generating ideas have became

much more important than have the physical (material) assests. Only tangible assets,

securities, and cash values can be displayed as the company's assets on classic business

balance sheets but today large part of the market value of business is intangible assests such

as human resources, intellectual capital, customer relationships and brand value. Common

example for this subject used is Microsoft Software Company. Microsofts market value is

430 billion dolars. Wheras the value of its tangible assets of 10 billion dollars (Bikin,

2004, p.40).


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As you see, intangible assets like brand equity of firm generate more than its

tangible assets. This example is best way to tell and show brand values worth on firms.

Brand Equity is one of the important intangible asset that generate market value of

businesses and provide valuation with high prices (Gezer,2006,P.33).

Equity Makes a Brand Strong

Brand Equity is a set of assets (and liabilities) linked to a brands name and

symbol that adds to (or substracts from) the value provided by a product or service tp a firm

and/or that firms customers.(Aaker,1996,p.7)

Marketing Science Institute defined brand equity as The set of associations and

behaviors on part of the brands customers, channel members, and parent corporation that

permits the brand to earn greater volume or greater margins than it could without the brand

name and that gives the brand a strong, sustainable, and differentiated advantage over

competitors (Keller 2003, p. 43).

The mechanism that underlies (equity) is agreed to be a latent value in the mind

of customers that is exhibited through its impact on behavior. Positive equity results inbehavior that benefits the brand through purchase frequeny, brand loyalty, price insensivity,

willingness to recommend and more.(Reynods&Phillips, 2010, p.19)

Brand equity is also the financial value of a brand that is derived from exclusive,

positive, and prominent meaning in the minds of customers. Brand equity brings premium

pricing, greater bargaining power with channels of distribution, reduced selling costs,

barriers to potential entrants, and synergistic advantages to a brand in question. The concept

was defined in several ways by several different authors and institutions. Some of the most

favorite ones were quoted by Keller (Keller, 2003, p.43).

Finally, Raj Srivastava defined it as Brand equity subsumes brand strength and

brand value. Brand strength is the set of associations and behaviors on the part of a brands


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customers, channel members, and parent corporation that permits the brand to enjoy

sustainable and differentiated competitive advantages. Brand value is the financial outcome

of managements ability to leverage brand strength via tactical and strategic actions inproviding superior current and future profits and lowered risks (Eren-Erdomu, 2005,

p.16).

For assets or liabilities to underlie brand equity they must be linked to the name

and/or symbol of the brand. If the brands name or symbol should change, some or all of

the assets or liabilities could be affected an deven lost although some might be shifted to a

new name and symbol. The assets and liabilities on which brand equity is based will differ

from context to context (Aaker,1991,p.15).

Brand equity is regarded as a very important concept in business practice as well as

in academic research because marketers can gain competitive advantage through successful

brands (Lassar, Mittal, Sharma, 1995, p.11). So the study of brand equity is increasingly

popular as some researchers have concluded that brands are one of the most valuable assets

that a company has. High brand equity levels are known to lead to higher consumer

preferences and purchase intentions as well as higher stock returns. Besides, high brand

equity brings an opportunity for successful extensions, resilience against competitorspromotional pressures, and creation of barriers to competitive entry (Eren-Erdomu, 2005,

p.16).

Clearly, various researches in brand equity through the years result in all different

kinds of dimension of brand equity that can be linked to a brand. However, the common

denominator in all models is the utilization of one or more dimension of the Aaker model.

Therefore, the consumer-based brand equity is an asset of four dimensions that are brand

awareness, brand associations, perceived quality and brand loyalty (Fayrene, Lee, 2011,

p.35).

Thanks to all definitions of brand equity, we can say that these five dimensions;

1- Brand equity refers to consumer perceptions rather than any objective indicators,


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2- Brand equity refers to a global value associated with a brand,

3- The global value associated with the brand stems from the brand name and not

only from physical aspects of the brand ,

4- Brand equity is not absolute but relative to competition,

5- Brand equity positively influences financial performance (Lassar,Mittal,Sharma,

1995, p.12).

Like the brand itself, brand equity can be considered both from the company

perspective, and from the customers perspective.

Financial-oriented brand equity

Customer-based oriented brand equity

2.1.1. Financial-Based Brand Equity

With 1980s because of increases mergers and acquisitions need to protect brand

value, brand equity measurements studies emerging as an entity emerged. To determine the

monetary value of the brand correctly, many valuation method has been developed by

academics, financiers, and consulting firms. But companies have brands have different

characteristics and located in different sectors, thats are prevented to give reliable results

because of the difficulty of measuring the effects created by the brand as a intangible assets.

There are many different approaches to the financial-oriented brand value. Several

of them are as follows;


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Point of view of financial market brands, such as factories and equipment are often

active in the purchased and sold. Therefore, the brand's financial value brought or

can bring to the financial market price. According to another overriding financial aspects of brand recognition, Brand value

is todays value that all input can provide used in future.

To another approach; it is possible to say that intangible securities make up the

basis of total value of business (Deneli, 2009, p.61).

Financial value-based techniques extract the brand equity value from the value of

the firms other assets . Simon and Sullivan (1993) define brand equity as the

incremental cash flows which accrue to branded products over and above the cash flows

which would result from the sale of unbranded products. These authors estimate a firms

brand equity by deriving financial market estimates from brand-related profits. Taking the

financial market value of a firm as a base, they extract the firms brand equity from the

value of the firms other tangible and intangible assets, which results in an estimate based

on the firms future cash flows. Along the same line of thought, Doyle argues that brand

equity is reflected by the ability of brands to create value by accelerating growth and

enhanc ing prices. In other words, brands function as an important driver of cash flow

(Guzman, p.13-14).

2.1.2. Customer-Based Brand Equity

Customer-based brand equity has been defined as the differential effect of brand

knowledge on consumer response to the marketing of the brand. Thus brand equity is

conceptualized from the perspective of the individual consumer and customer-based brand

equity occurs when the consumer is familiar with the brand and hold some favorable,

strong, and unique brand associations in the memory (Lassar, Mittal, Sharma, 1995, p.11).


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Getting operationable of brand equity in marketing is divided into two groups.The

first of these includes consumer perceptions of awareness, brand associations, perceived

quality. Second one is brand loyalty includes with consumer behavior and desire to pay theprice differences. Brand equity definitions varies in literature. According to Erdem and

Swait ; customer-based brand equity is brand equity as a reputation indication of position of

product. For Varquez and others, definition of customer-oriented brand equity is sum of the

functional and symbolic benefits derived by as a result of using and consumption of brand

by consumers (Deneli, 2009, 62).

Keller and Aaker define brand equity comprehensively and they examined by

separating brand value into four component .

These are ;

Brand Awareness

Perceived Quality

Brand Loyalty

Brand Assocation

Figure 2 :(Source : Francisco GUZMAN, A Brand Building Literature Review, p.14)


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2. 2. IMPORTANCE OF BRAND EQUITY

In a study conducted stated in 1991 by the Marketing Science Institute, marketing

is the most important issue facing the management of brand equity. Especially with

increased competition, Changing market conditions, even more conscious consumers and

consumers dont want to spent too much effort to shop has led to emergence this

importance (Karacan, 2006, p.23).

Brand equity is the financial value of a brand that is derived from exclusive,

positive, and prominent meaning in the minds of customers. Brand equity brings premium

pricing, greater bargaining power with channels of distribution, reduced selling costs,

barriers to potential entrants, and synergistic advantages to a brand in question (Eren-

Erdomu, 2005, p.16).

Brand equity is a strategic bridge from past to future for marketers. Consumers

about the brand they know, remember, they feel a kind of marketing investment.As a result

of this information, it is possible to guide the brand's future strategy (Erdem, Uslu, 2010,

p.167-168).

Like the brand itself, brand equity can be considered both from the company

perspective, and from the customers perspective. From companys perspective, it can be

considered as the value of the marketing mix given the brand name attached versus the

value of the same mix without the brand name. From customers point of view it is the

difference in customers response to marketing mix activities of a branded product versus

customers response to the same mix without a brand. Brand name is used as a predictive

cue in this respect (Eren-Erdomu, 2005, p.16).


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2.2.1. Importance of Brand From Brand Equitys Point Of View

Today way the achieving consumers and having sustainable competitive advantage

pass from first respect for customer and being a pioneer creating satisfy in the market by

understanding and right analyze their needs. Provision of additional benefits offered to the

market with product or service in the mind of the consumer brands urge to make positive

connotations. Brand equity is added value that brand name carieers product beyond the

functional value. Because of positive impressions that value makes product and value of

organization in the market more important than actives of enterprice (Erdem, Uslu, 2010,

p.167).

Attempt to explain the relationship between customers and brands, has led to

formation of the concept of brand equity in marketing literature. The concept of brand

equity has taken place in both financial and marketin literature and emphasized the

importance that giving importance of brand management in long-term (Karacan, 2006,

p.23).

2.2.2. Importance Of Brand Equity In Building Brand Process

In essence, brand development efforts are creating brand-specific equity.

Mentioned here the equity is a concept that increases market value of the brand or

businesses, created by give customer value brand by firm and ultimately express a value for

the company. If customer show a more positive or more negative reaction against the brand

than indicates a reaction which doesnt know the brand name or a brand -untitled of the

same product category, in this case can be reported positive or negative brand equity.

(zgl, 2001, p.7).


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Brand equity in consumer minds is the result of public perception formed by all

the impressions your brand makes in its marketplace.If consumer impressions are positive

and consistent, your brand equity/brand value is likely to be positive and consistent, too. Ifimpressions are erratic or even negative, brand equity/brand value is likely to waver and

sink on the news (Chiaravalle, Schenck, 2007, p.254).

Your brands equity as an asset is called brand equity. Brand equity is determined

by a complex process that weighs your brands current and future monetary value, based

only on consumer perceptions but also on the ability of your brand to deliver economic

advantages to its owner in the future (Chiaravalle, Schenck, 2007, p.254).

2.3. BUILDING BRAND EQUITY

Globalization accelerated in the 1990s and today's intense competitive

environment for businesses to obtain a strong position against competitors in the market

just is not enough to create a brand, brand equity must also increase continuously. Because

highly brand equity provides an important competitive advantage to businesses (Gezer,

2006, p.92).

2.3.1. A Conceptual Framework of Brand Equity

Inspired by Kellers (1993, 2003), Aakers (1991, 1996), Kapferers (1997), de

Chernatonys (2001) and Yoo, Donthu and Lees (2000) works, a conceptual framework is

proposed. The framework summarizes the strategic brand management and brand equitycreation for multiple parties. The framework starts with the creation of the brand identity in

the firm. The brand identity is created in the firm by deciding on brand positioning, core

values of the brand, functional and emotional benefits, personality, and origin of the brand.

Then brand identity is transferred to the customers through planning and implementing


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brand marketing programs. Brand marketing includes brand elements, conventional and

nonconventional methods of marketing management. Brand name, logo, brand character,

four Ps of marketing, and online marketing are designed in order to create high brandawareness and form a positive image of the brand in the minds of the customers, retailers,

and distributors. This way, brand equity is created. Brand equity, in return, brings value to

the firm, customers, retailers and distributors. This value is more of financial value and

outcome of the marketing activities of the brand when the firm is concerned. It is predictive

cues, a guarantee of quality, trust, optimization of time and choice, and confirmation of

selfimage when the customers are concerned. Finally, it is increased consumer interest,

patronage, and loyalty when the retailers and distributors are concerned (Eren-Erdomu,

2005, p.33).

2. 4. ELEMENTS OF BRAND EQUITY

David A. Aaker and Erich Joachhimsthaler addressed from the perspective of

consumers and business strategy management approach supported their brand equity

consists of four elements indicated. Brand Awareness, Perceived Quality, Brand Loyalty

and Brand Association. The authors must be maintained to adhere to brand name or symbol

to establish the basis of these elements of brand equity. Brand equity elements are at the

same time in interaction each one is helping to creation, development and strengthen

theirself; activities that configures the brand influence elements of brand equity in positive

way and elements is occur due to marketing activities (Gezer, 2006, p.42).


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2.4.1. Brand Awareness

Awareness refers to the strength of a brands presence in the consumers mind. If

consumers minds were full of the mental billboards each one depicting a single brand-

then a bans awareness would be reflected in the size of its billboard. Awareness is

measured according to the different ways in which consumers remember a brand, ranging

from recognition (have you been exposed to this brand before?) to recall (What brands of

this product class can you recall?) to top of mind (the first brand recalled) to dominant

(the only brand recalled). As psychologist and economists have long understood, however,

recognition and recall are signals of much more than just remembering a brand (Aaker,

1996, p.10).

Awareness, the brandss place in comparison with competitors in the consumers

mind. Brand awareness, brand identity is considered as a sign, logo, such as elements, help

to achieve success of companies brand awareness. Brand Awareness, first conscious step

for brand and its existence entirely in memory of consumer. Awareness is the first come to

mind of consumers memory in product purchases and it aims to be constantly on the

agenda. Brand awareness consist a combination of two basic concepts as a brand

recognition and brand recall (Erci, Yaprakl, Can, Ylmaz, 2009, p.16).

Recognition reflects familiarity gained from past exposure. Recognition does not

necessarily involve remembering where the brand was encountered before, why it differs

from other brands, or even what the brands product class is. It is simply remembering that

there was a past exposure to the brand. Research in psychology has shown that recognition

alone can result in more positive feelings toward nearly anything, it be music, people,

words, or brands (Aaker, 1996, p.10).

Another important concept in the brand awareness is brand recall. This concept,

when given a hint of the brand to the consumer, the consumer can be defined as the ability

to use prior knowledge. Also, when the consumer hear the brand name it is very important

what occurs in consumer mind (Erci, Yaprakl, Can, Ylmaz, 2009, p.16). Brand recall


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involves both depth and breadth. Depth is the likelihood that a brand element will come to

mind and the ease with which it does so. The breadth, on the other hand, is the range of

purchase and usage situations in which the brand element comes to mind.

Brand recognition is the ability of consumers to confirm prior exposure to the

brand when given the brand as a cue, and brand recall, or ability of consumers to retrieve

the brand from memory when given the product category, the needs fulfilled by the

category, or a purchase, usage situation as a cue.Marketers can create brand awareness by

increasing consumer experiences with the brand by seeing it, hearing it, and thinking about

it. Anything can be done to visually and verbally reinforce the brand name and other

relevant brand elements such as its logo, symbol, or jingle through advertising, promotion,sponsorship, event marketing, publicity, and public relations (Eren-Erdomu, 2005, p. 17).

Because consumers are bombarded every day by more and more marketing

messages, the challenge of establishing recall and recognition _and doing so economically_

is considerable. Two factors are likely to be increasingly important as firms struggle with

this challenge. First, given the recourses required to create healthy awareness levels, a

broad sales base is usually a enormous asset. It is expensive and often impossible to support

brands with relatively small units sales and a life measured in years instead of decades. For

this reason, corporate brands such as General Electric, Hewlett-Packard, Honda, or Siemens

have an advantage when it comes to building presence and awareness , because multiple

businesses support the brand name. Second, in the coming decades, the firms that become

skilled at operating outside the normal media channels_ by using event promotions,

sponsorships, publicity, sampling, and other attention getting approaches_ will be the most

successful in building brand awareness (Aaker, 1996, p.16). Getting customer to recognize

and recall your brand thus can considerably enhance brand equity.

Brand awareness is the basic step in the communication task since it is wasteful to

communicate a brands promises unless a brand name is established in consumers mind

with which to associate what is communicated. Raising brand awareness increases the


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familiarity, liking, and the likelihood that the brand will be the consideration set for

purchasing (Aaker, 1991, p.56).

Brand awareness, positive impact on sales resulting from a variety of ways the two

can be versatile.

The first of these effects, awareness has a positive effect on perceived quality and

preferences. When consumers heard positive things about the company, they perceive this

situation in a form of firm has a large number of customer and running of the company

effective. It is expected that a company with a known name will give a better service than

foes. Another positive effect of awareness on sales is customers tends to purchase brands

that a first-come to mind or they already knew as a result of desire to shorten costs and

decision making process. Such an approach is much more active in the consumer decision-

making, such as toothpaste products that is generally accepted (Karacan, 2006, p.38).

Brand awareness and recognition is very important to increase the likelihood of

brand recall and therefore facilitates the inclusion of set of evaluation. If a brand can not be

recall and can not provide awareness it will not included in set of evaluation and not taken

into account for the purchase. Increasing brand awareness become a set member so electedand increase the likelihood of purchase. Brands with first comes mind and strong brand

image have a strategic competitive advantage when they are included in evaluation set

(Gezer, 2006, p.63).

2.4.2. Perceived Quality

Perceived quality is as comprehensive as the supremacy of the judiciary of a

product or when substitutes is considered is defined as comprehensive as a rule of

jurisdiction of the consumer. Parasuraman, Zeithaml, Berry in the perceived quality is

defined as the assessment on the consumer about added superior value on product capacity.

(Karacan, 2006, p.50-51) Perceived quality is a dimension that is recognized by Aaker. It


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can be defined as the customers perception of the overall quality or superiority of a

product or service with respect to its intended purpose, relative to alternatives (Aaker

1991, p. 85).

Perceived quality is a brand association that is elevated to the status of a brand asset

for several reasons;

Among all brand associations, only perceived quality has been shown to drive

financial performance.

Perceived quality is often a major (if not the principles) strategic thrust of a

business.

Perceived quality is linked to and often drives other aspects of how a brand is

perceived (Aaker, 1996, p.17).

There is a pervasive thirst to show that investments in brand equity will pay off.

Although linking financial performance to any intangible asset (whether it is people,

information technology, or brand equity) is difficult (Aaker, 1996, p.17).

There is no question that perceived quality is essential, as evidenced by the

tremendous attention given to the Baldrige Aards for quality management and the J.D.

Power and Associates Satisfaction Research. Regardless of how one chooses to rate

perceived quality, ultimately it is only as good as the consumer perceives it (Knapp, 1994,

p.14).

Perceived quality is the customers judgment about a products overall excellence

or superiority that is different from objective quality. Objective quality refers to the

technical, measurable and verifiable nature of products/services, processes and quality

controls. High objective quality does not necessarily contribute to brand equity. Since its

impossible for consumers to make complete and correct judgments of the objective quality,

they use quality attributes that they associate with quality. Perceived quality is hence

formed to judge the overall quality of a product/service. Boulding and other researchers


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(1993) argued that quality is directly influenced by perceptions. Consumers use the quality

attributes to infer quality of an unfamiliar product. It is therefore important to understand

the relevant quality attributes are with regard to brand equity (Fayrene Y.L., Lee, 2011,p.38).

Besides among alternatives in accordance wih the objectives, it is can be defined

consumer perception about brands advantages, or general quality. As the definition

suggests, the perceived quality is associated with the consumer and value judgments

emerging as a factor in determining what is important. The values given by consumer differ

due to their personality, needs, and preferences. Starting from here, should be noted that

perceived quality is a different concept from being satisfied. Because, to the lowexpectations that can satisfy the consumer (Erci, Yaprakl, Can, Ylmaz, 2009, p.16).

Zeithaml (1988) and Steenkamp (1997) classify the concept of perceived quality in

two groups of factors that are intrinsic attributes and extrinsic attributes. The intrinsic

attributes are related to the physical aspects of a product (e.g. colour, flavour, form and

appearance); on the other hand, extrinsic attributes are related to the product, but not in the

physical part of this one (e.g. brand name, stamp of quality, price, store, packaging and

production information. Its difficult to generalize attributes as they are specific to product

categories (Fayrene Y.L., Lee, 2011, p.38).

It is the perception of customers. Therefore, judgments about what is important to

customers are involved. Perceived quality has two dimensions; product quality and service

quality. Product quality involves the tangible aspects of quality, such as performance,

features, conformance with specifications, reliability, durability, serviceability, and the fit

and finish (appearance and feel of quality). Service quality, on the other hand, involves

tangibles appearance and feel of quality), reliability (dependability and accurateness),

competence (knowledge and skill), and empathy (caring, individualized attention). To

enhance perceived quality, a firm should have commitment to quality, a quality culture,

obtain accurate and current customer input, measurement and standards, allow employee


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initiative, and raise customer expectations above those delivered. Price also affects

perceived quality, especially when there are more differences in perceived quality across

product classes. The value of the perceived quality to a firm can be expressed in creating areason-to-buy, differentiation, a price premium, motivation to channel members, and brand

extensions (Eren-Erdomu, 2005, p.17,18).

2.4.3. Brand Loyalty

Customers consistent preference for one brand over all others in its product

category. Over half the users in product categories such as cigarettes, mayonnaise,toothpaste, coffee, headache remedies, photographic film, bath soap, and catsup are loyal to

one brand (Lamb, Hair, McDaniel, 1998, p.299).

According to traditional definition made by William T. Tucker; behavior in terms

of acquisitions of brand in the past and again is regarded as an indicator of brand loyalty.

To this definition,brand loyalty is selection behavior of branded goods. Then Jacob Jacoby

and David B. Kyner defined loyalty as a relational phenomenon that is a subset of multi-

dimensional structure and repeat purchase behavior (Gezer, 2006, p.55).

The most often forgotten driver in building brand equity is brand loyalty. There is

nothing like a satisfied customer to tell a brands story and influence others. Other

proprietary assets such as patents, trademarks, and unique attributes can be very helpful as

well when consumers must shift through the clutter of choices that exists in todays

marketplace. Customer can be characterized by a variety of loyalty descriptions. One of the

common misperceptions is that the way to build loyalty is to focus on future sales. Frequent

flyer and customer loyalty programs are tools some brands utilize in an attempt to lock

customer into future purchases (Knapp, 1994, p. 15-16).

Brand loyalty is excluded from many conceptualizations of brand equity. There are

at least two reasons, however, why it is appropriate and useful to include it. First a brands


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value to a firm is largely created by the customer loyalty it commands. Second, considering

loyalty as an asset encourages and justifies loyalty-building programs which then help

create and enhance brand equity (Aaker, 1996, p.21).

Brand loyalty is at the core of brand equity concept according to Aaker. It is a

measure of the attachment that a customer has to a brand (Aaker 1991, p. 39). If customers

are indifferent to a brand, then there is little brand equity. Brand loyalty of existing

customers is a strategic asset, which has a potential to provide value if properly managed.

The familiar is comfortable and reassuring, whereas changing brands requires effort,

especially if the decision involves substantial investment or risk. Brand loyalty directly

translates into sales, reduces marketing costs, pressures channel members to hold the brandand gives it a good shelf space, attracts new customers, and gives time to respond to

competitive threats. To create brand loyalty, a firm should be careful to treat the customers

right, stay close to customers, measure and manage customer satisfaction, create switching

costs for customers, and provide a few extra unexpected services (Eren-Erdomu, 2005,

p.19).

Brand loyalty is a key consideration when placing a value on a brand that is to be

bought or sold, because a highly loyal customer base can be expected to generate a very

predictable sales and profit stream. In fact, a brand without a loyal customer base usually is

vulnerable or has value only in its potential to create loy

BRAND EQUITY AND EVALUATING TURKISH BRANDS

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