Brand Equity

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  • 23
  • Brand Equity

    1. 1. “ BRAND EQUITY” <ul><li>Presented by :- Avtar Singh </li></ul>
    2. 2. What is a brand? <ul><li>A brand is a name, term, sign, symbol, or design, </li></ul><ul><li>or a combination of them, </li></ul><ul><li>intended to identity the goods or services </li></ul><ul><li>of one seller or group of sellers </li></ul><ul><li>and to differentiate them from those of competitors </li></ul>
    3. 3. Brand equity <ul><li>Brand Equity is a set of assets linked to a brand’s name and symbol that adds to the value provided by a product or service to a firm and/or that firm’s customers </li></ul><ul><li>Brand Equity is a set of liabilities linked to a brand’s name and symbol that subtracts from the value provided by a product or service to a firm and/or that firm’s customers </li></ul>
    4. 4. Brand equity: Key aspects <ul><li>Brand equity is a set of assets </li></ul><ul><ul><li>Management of brand equity involves investment to create and enhance these assets </li></ul></ul><ul><li>Each brand equity asset creates value in a variety of very different ways </li></ul><ul><ul><li>It is imperative to be sensitive to the ways in which strong brands create value </li></ul></ul><ul><li>Brand equity creates value for customer and firm </li></ul><ul><li>For assets or liabilities to underlie brand equity, they must be linked to name/symbol of the brand </li></ul>
    5. 5. Value to the customer <ul><li>Brand equity assets can help customers interpret, process and store huge quantities of info about products / brands </li></ul><ul><li>It can affect customers’ confidence in purchase decision </li></ul><ul><ul><li>Due to past-use experience or familiarity with brand </li></ul></ul><ul><li>Both perceived quality and brand associations can enhance customers’ satisfaction with use experience </li></ul><ul><ul><li>Knowing brand is Arrow can make user feel different </li></ul></ul>
    6. 6. Value to the firm <ul><li>Brand equity can enhance programmes to attract new customers or recapture old ones </li></ul><ul><li>Perceived quality, associations and known name provide reasons to buy & affect use satisfaction </li></ul><ul><li>Usually allows higher margins by permitting both premium pricing and reduced promotions </li></ul><ul><li>Can provide leverage in the distribution channel </li></ul><ul><li>Brand equity assets provide a competitive advantage that present a barrier to competitors </li></ul>
    7. 7. Major asset categories <ul><li>Brand name awareness </li></ul><ul><li>Perceived quality </li></ul><ul><li>Brand loyalty </li></ul><ul><li>Brand associations </li></ul>
    8. 8. Brand Equity <ul><li>Brand Loyalty: Higher Loyalty to a brand is an important asset. It can be utilized to persuade customers for more purchase or for spreading word of mouth. </li></ul><ul><li>Name Awareness: Creating Name Awareness is a necessary condition for trial. Customers rarely purchase an unknown brand. </li></ul><ul><li>Perceived Quality: A known brand often conveys an aura of quality. Customers own judgment about quality induces purchase action. </li></ul><ul><li>Brand Associations: Customers attach certain subjective and emotional attachments which form a part of the brand equity. Those associations together form a brand personality, which suggests situations and customers for whom the particular brand is suited. </li></ul><ul><li>Other Assets: Patents, Trademarks, etc. are valuable other assets of a brand </li></ul>
    9. 9. Customer-Based Brand Equity Model Consumer- Brand Resonance Brand Salience Consumer Judgments Consumer Feelings Brand Performance Brand Imagery INTENSE, ACTIVE LOYALTY RATIONAL & EMOTIONAL REACTIONS POINTS-OF-PARITY & POINTS-OF-DIFFERENCE DEEP, BROAD BRAND AWARENESS
    10. 10. Salience Dimensions <ul><li>Depth of brand awareness </li></ul><ul><ul><li>Ease of recognition & recall </li></ul></ul><ul><ul><li>Strength & clarity of category membership </li></ul></ul><ul><li>Breadth of brand awareness </li></ul><ul><ul><li>Purchase consideration </li></ul></ul><ul><ul><li>Consumption consideration </li></ul></ul>
    11. 11. Performance Dimensions <ul><li>Primary characteristics & supplementary features </li></ul><ul><li>Product reliability, durability, and serviceability </li></ul><ul><li>Service effectiveness, efficiency, and empathy </li></ul><ul><li>Style and design </li></ul><ul><li>Price </li></ul>
    12. 12. Imagery Dimensions <ul><li>User profiles </li></ul><ul><ul><li>Demographic & psychographic characteristics </li></ul></ul><ul><ul><li>Actual or aspirational </li></ul></ul><ul><ul><li>Group perceptions -- popularity </li></ul></ul><ul><li>Purchase & usage situations </li></ul><ul><ul><li>Type of channel, specific stores, ease of purchase </li></ul></ul><ul><ul><li>Time (day, week, month, year, etc.), location, and context of usage </li></ul></ul><ul><li>Personality & values </li></ul><ul><ul><li>Sincerity, excitement, competence, sophistication, & ruggedness </li></ul></ul><ul><li>History, heritage, & experiences </li></ul><ul><ul><li>Nostalgia </li></ul></ul><ul><ul><li>Memories </li></ul></ul>
    13. 13. Judgment Dimensions <ul><li>Brand quality </li></ul><ul><ul><li>Value </li></ul></ul><ul><ul><li>Satisfaction </li></ul></ul><ul><li>Brand credibility </li></ul><ul><ul><li>Expertise </li></ul></ul><ul><ul><li>Trustworthiness </li></ul></ul><ul><ul><li>Likability </li></ul></ul><ul><li>Brand consideration </li></ul><ul><ul><li>Relevance </li></ul></ul><ul><li>Brand superiority </li></ul><ul><ul><li>Differentiation </li></ul></ul>
    14. 14. Feelings Dimensions <ul><li>Warmth </li></ul><ul><li>Fun </li></ul><ul><li>Excitement </li></ul><ul><li>Security </li></ul><ul><li>Social approval </li></ul><ul><li>Self-respect </li></ul>
    15. 15. Resonance Dimensions <ul><li>Behavioral loyalty </li></ul><ul><ul><li>Frequency and amount of repeat purchases </li></ul></ul><ul><li>Attitudinal attachment </li></ul><ul><ul><li>Love brand (favorite possessions; “ a little pleasure ” ) </li></ul></ul><ul><ul><li>Proud of brand </li></ul></ul><ul><li>Sense of community </li></ul><ul><ul><li>Kinship </li></ul></ul><ul><ul><li>Affiliation </li></ul></ul><ul><li>Active engagement </li></ul><ul><ul><li>Seek information </li></ul></ul><ul><ul><li>Join club </li></ul></ul><ul><ul><li>Visit web site, chat rooms </li></ul></ul>

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