Brand equity


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Brand equity

  1. 1. Brand Equity
  2. 2. Definitions• Measurable financial value that accrues to a product/service from successful programs & activities – Walker & Yankelovich• A set of brands assets & liabilities linked to the brand’s name, symbol that add or subtract from the value it provides – David Aaker
  3. 3. Definitions• The differential effect ofbrand knowledge onconsumer response to the marketing of the brand
  4. 4. Brand Equity- Advantages1. Brand equity as a bridge• Reflection of the Past• Direction for the future2. Focus and Guidance
  5. 5. Sources of Brand Equity1. Brand Awareness- recognition & recall• Learning advantages• Brands become part of the consideration set• Affects Choices of consumers
  6. 6. Sources of Brand Equity2. Brand Image & Association- link strong favorable unique associations to the brand• Strength of brand association- attributes (descriptive features of product) & benefits (personal value & meaning attached to product)• Favorability – relevant, distinct, belief• Uniqueness – points of parity & points of difference
  7. 7. Consumer Based Brand EquityCBBE – differential effect that brand knowledge has on the consumers response to the marketing of that brand.3 key elements1. Differential effect2. Brand knowledge3. Consumer response to marketing Power of the brand lies in the mind of the consumers.
  8. 8. CBBE Pyramid Consumer- 4 Bond – Strong relationship Brand Resonance 3 Emotional and Intellectual influence Consumer Judgment Consumer Feelings Brand 2 DifferentiatorsBrandPerformance Imagery Brand Salience 1 Broad Awareness
  9. 9. Sub-dimensions of brand building blocks Resonance Loyalty Attachment 4 Brand Relationships (WHAT About You AND ME?) Community Engagement Quality Warmth, Fun Feelings Credibility Excitement, Judgments Consideration Security, Social 3 Brand Response (WHAT About You?) Superiority Approval, Self-Respect Brand Characteristics & Secondary Features User Profiles Imagery Purchase and UsagePerformance Product Reliability, Durability & Serviceability 2 Brand Meaning (WHAT Are You?) Situations Service Effectiveness, Efficiency, & Empathy Personality & Values Style and Design; Price History, Heritage, & Experiences Category Identification Needs Satisfied 1 Brand Identity (WHO Are You?) Salience
  10. 10. 4 Steps to Brand building1. Identify the brand with customers based on need or product class2. Brand Meaning in the minds of customers by linking tangible &intangible to the brand3. Response4. Relationship
  11. 11. Brand Pyramid1. Identity i. Salience - • Category Identification • Need Satisfaction
  12. 12. Brand Pyramid2. Meaning i. Performance –  Product Reliability, durability, serviceability  Service effectiveness, efficiently, empathy  Style & design  Price
  13. 13. Brand Pyramid2. Meaning ii. Imagery- User profiles Usage situations Personality & Values History & experiences
  14. 14. Brand Pyramid3. Response i. Judgments- • Quality • Credibility • Consideration • Superiority ii. Feelings- • Warmth • Fun • Excitement • Security • Self Respect • Social Approval
  15. 15. Brand Pyramid4. Relationships i. Resonance- • Loyalty • Attachment • Community- Apple, Harley Davidson • Engagement – clubs-Gang of Girls, MTV, WOM by customers themselves
  16. 16. Building Customer-Based BrandEquity 1. Brand building tools and objectives 2. Consumer knowledge effects 3. Branding Benefits
  17. 17. 1. Brand building tools and objectives Choose Brand Elements Brand name Memorability Logo Meaningfulnes Symbol s Character Likability Packaging Transferability Slogan Adaptability Protectability
  18. 18. Brand building tools and objectives Developing Marketing ProgramsProduct Tangible and intangible benefitsPrice Value PerceptionsDistribution Integrate “Push” & “ Pull” ChannelsCommunications Mix and match options Ref: Strategic Brand Mgmt. – Kevin Kelly
  19. 19. Brand building tools and objectives Leverage on secondary associations Company Country of origin Awareness Channels of Dist. Other Brands Meaningfulness Endorse or Event Transferability
  20. 20. Consumer Knowledge Effects• Brand Awareness • Brand Associations – Depth – Strong • Recall • Relevance • Recognition • Consistence – Breadth – Favorable • Purchase • Desirable • Consumption • Deliverable – Unique • Points of parity • Points of difference
  21. 21. Possible outcomes• Greater Loyalty• Less vulnerability to competitive marketing actions and crises• Larger Margins• More elastic response to price decreases• More inelastic response to price increases• Greater trade cooperation and support• Increased marketing communication efficiency and effectiveness• Possible Licensing opportunities• More favorable brand extension evaluations
  22. 22. Managing Customer Brand Equity1. Define Brand hierarchy2. Define Brand- Product mix3. Enhance Brand Equity over time4. Establish B.E. over market segments
  23. 23. Managing Customer Brand Equity• Define Brand – Principle of Simplicity – Principle of relevance hierarchy – Principle of differentiation – Principle of prominence – Principle of commonality
  24. 24. Managing Customer Brand Equity• Define Brand- – Brand extensions Product mix – Brand Portfolio
  25. 25. Managing Customer Brand Equity• Enhance Brand A. Brand Equity over time Reinforcements B. Brand revitalization
  26. 26. Managing Customer Brand Equity• Establish B.E. – Identify over market differences in consumer segments behavior – Adjust Branding program