Brand equity

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Brand equity

  1. 1. 1visit: www.studyMarketing.orgManagingManagingBrand EquityBrand Equity
  2. 2. 2visit: www.studyMarketing.orgYou can download this presentation at:www.studyMarketing.orgVisit www.studyMarketing.org for morepresentations on Marketing, Strategy,Innovation, and Branding
  3. 3. 3visit: www.studyMarketing.orgBrand equity isa set of brand assets andliabilities linked to a brand
  4. 4. 4visit: www.studyMarketing.orgElements of Brand Equity:Elements of Brand Equity:Brand LoyaltyBrand AwarenessPerceived QualityBrand Associations
  5. 5. 5visit: www.studyMarketing.orgBrand LoyaltyBrand LoyaltyBrand loyalty is a measure of theattachment that a customer has to abrand.It reflects how likely a customer will be toswitch to another brand, especially when thatbrand makes a change, either in price or inproduct features.
  6. 6. 6visit: www.studyMarketing.orgBrand Loyalty PyramidBrand Loyalty PyramidCommitted BuyerLikes the Brand - Considers it a FriendSatisfied Buyer With Switching CostsHabitual Buyer - No Reason to ChangeIndifferent – No Brand LoyaltySwitchers / Price Sensitive
  7. 7. 7visit: www.studyMarketing.orgMeasuring Brand Loyalty• Purchase Behavior Patterns• Switching Cost Analysis• Satisfaction Measurement
  8. 8. 8visit: www.studyMarketing.orgStrategic Value of Brand Loyalty• Reduce marketing cost• Trade (channel distribution) leverage• Attracting new customers
  9. 9. 9visit: www.studyMarketing.orgEnhancingBrand Loyalty• Treat the customer right• Stay close to the customer• Measure/manage customersatisfaction• Create switching cost• Provide extras
  10. 10. 10visit: www.studyMarketing.orgBrand Awareness isBrand Awareness isthe ability of a potentialbuyer to recognize or recallthat a brand is a member ofa certain product category
  11. 11. 11visit: www.studyMarketing.orgBrand Awareness HierarchyTop of MindBrand RecallBrand RecognitionUnaware of Brand
  12. 12. 12visit: www.studyMarketing.orgValue of Brand Awareness• Anchor to which other associations can beattached• Familiarity and liking• Signal of substance/commitment• Brand to be considered
  13. 13. 13visit: www.studyMarketing.orgHow to AchieveBrand AwarenessBe different, memorableInvolve a slogan or jingleSymbol exposurePublicityEvent sponsorship
  14. 14. 14visit: www.studyMarketing.orgThe customers perception of the overallquality or superiority of a product or servicewith respect to its intended purpose, relative toalternatives. Perceived quality is a perceptionby customers.Perceived Quality
  15. 15. 15visit: www.studyMarketing.orgWhatInfluencesPerceivedQuality ofProductProduct?• Performance• Features• Conformance withspecifications• Reliability• Durability• Serviceability• Fit and finish
  16. 16. 16visit: www.studyMarketing.orgWhatInfluencesPerceivedQuality ofServiceService?AppearanceReliabilityCompetenceResponsivenessEmpathy
  17. 17. 17visit: www.studyMarketing.orgThe Value of Perceived Quality• Reason-to-Buy• Differentiate/Position• A Price Premium• Channel Member Interest• Brand Extensions
  18. 18. 18visit: www.studyMarketing.orgBrand AssociationBrand AssociationA brand association is anything"linked" in memory to a brand.Thus, McDonalds could be linked to acharacter such as Ronald McDonald, aconsumer segment such as kids, a feelingsuch as having fun, a product characteristicsuch as service, or a symbol such as theGolden Arches.
  19. 19. 19visit: www.studyMarketing.orgSome Types ofAssociations• Product Attributes• Customer Benefits• Relative Price• Lifestyle/Personality• Celebrity/Person• Use/Application
  20. 20. 20visit: www.studyMarketing.orgThe Value of BrandAssociations• Help Process/RetrieveInformation• Differentiate/Position• Reason-to-Buy• Create PositiveAttitudes/Feelings• Basis for Extensions
  21. 21. 21visit: www.studyMarketing.orgMaintainingAssociations• Be consistent over time• Be consistent overelements of the marketingprogram• Manage disasters in orderto minimize their damage
  22. 22. 22visit: www.studyMarketing.orgCriteria forCriteria forBrand Name SelectionBrand Name Selection• Be easy to learn and remember• Suggest the product class• Support a symbol or slogan• Suggest desired association withoutbeing boring or trivial• Not suggest undesired associations• Be distinctive• Be available and protectable legally
  23. 23. 23visit: www.studyMarketing.orgSource of Reference:David Aaker, Managing Brand Equity : Capitalizing onthe Value of A Brand Name, Free Press

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