BRAND MANAGEMENT

School: Social SciencesFaculty: Public RelationsSudent: Ani AsatianiProfessor: Bahman MoghimiTopic: Brand Equity

Brand

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.”

American Marketing Association

Brand…

Identifies product/service

of seller anddifferentiates

from competitors

designsymbol

term sign

name Combination

The Role of Brand

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

Consumers learn about brands through past experinces with the product and find out which brand satisfy their needs and wants

Simplify decision making and reduce risk

Brand Equity

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

Awareness Familia

rity

Image &

Personality

Loyalty

Preference

Avaliability Associ

ations

Customer based approaches to brand equity

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 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 models

Brand Asset Valuator: Developed by Advertising agency Young and Rubicam(Y&R).

According to BAV there are four pillars of brand equity:

Differentiation Relevance Esteem Knowledge Differentiation and relevance point to the brands future

value and Esteem and acknowledge reflects the past performance of the firms.

Aaker Model:

Viewed by UC-Berkeley professor David Aaker.There are a set of five categories of brand assets

and liabilities which add value to the product.They are:

Brand loyalty Brand awareness Perceived quality Brand associations Other proprietary assets

Brandz model

Developed by marketing research consultants Millward and WPP.

As per this model brand building involves series of steps:

The objectives of each steps are the following:

Presence Relevance Performance Advantage Bonding

Brand Resonance

• It also views brand building as an ascending, sequential series of steps

• Ensuring identification of the brand with customers’ minds with a specific product class or customer need.

• Firmly establishing the brand into the mind of the consumer.

• Eliciting proper customer response to in terms of brand related judgment and feelings.

• Converting brand response to create an intense, active loyalty relationship between customers and the brand.

Building Brand Equity

Building brand equity includes:

The initial choices for the brand elements or the identities making up the brand

The product and service and all accompanying marketing activities and supporting marketing programs

Other associations indirectly transferred to the brand by linking it to some other entity (person, place, thing etc…)

Brand Elements

Brand elements are those trademarkable devices that serve to identify and differentiate the brand. Most strong brands employ multiple brand elements. Brand elements can be chosen to build as much brand as possible.

Brand elements have its choice criteria which should be:

Meaningful Memorable Likeability Transferable Adaptable Protectable  

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 defenst against new

products and competitors; Improvements in brand equity lead to higher rates of

product trial and repeat purchuasing due to buyers’ awareness of your brand, approval of its image/reputation and trust in its quality.

Thanks for Attention!