Brand Equity


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Brand Equity

  1. 1. Managing Brand Equity
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  3. 3. Brand equity is a set of brand assets and liabilities linked to a brand
  4. 4. Elements of Brand Equity: Brand Loyalty Brand Awareness Perceived Quality Brand Associations
  5. 5. Brand Loyalty Brand loyalty is a measure of the attachment that a customer has to a brand. It reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or in product features.
  6. 6. Brand Loyalty Pyramid Committed Buyer Likes the Brand - Considers it a Friend Satisfied Buyer With Switching Costs Habitual Buyer - No Reason to Change Indifferent – No Brand Loyalty Switchers / Price Sensitive
  7. 7. Measuring Brand Loyalty <ul><li>Purchase Behavior Patterns </li></ul><ul><li>Switching Cost Analysis </li></ul><ul><li>Satisfaction Measurement </li></ul>
  8. 8. Strategic Value of Brand Loyalty <ul><li>Reduce marketing cost </li></ul><ul><li>Trade (channel distribution) leverage </li></ul><ul><li>Attracting new customers </li></ul>
  9. 9. Enhancing Brand Loyalty <ul><li>Treat the customer right </li></ul><ul><li>Stay close to the customer </li></ul><ul><li>Measure/manage customer satisfaction </li></ul><ul><li>Create switching cost </li></ul><ul><li>Provide extras </li></ul>
  10. 10. Brand Awareness is the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category
  11. 11. Brand Awareness Hierarchy Top of Mind Brand Recall Brand Recognition Unaware of Brand
  12. 12. Value of Brand Awareness <ul><li>Anchor to which other associations can be attached </li></ul><ul><li>Familiarity and liking </li></ul><ul><li>Signal of substance/commitment </li></ul><ul><li>Brand to be considered </li></ul>
  13. 13. How to Achieve Brand Awareness Be different, memorable Involve a slogan or jingle Symbol exposure Publicity Event sponsorship
  14. 14. The customer's perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives. Perceived quality is a perception by customers. Perceived Quality
  15. 15. What Influences Perceived Quality of Product ? <ul><li>Performance </li></ul><ul><li>Features </li></ul><ul><li>Conformance with specifications </li></ul><ul><li>Reliability </li></ul><ul><li>Durability </li></ul><ul><li>Serviceability </li></ul><ul><li>Fit and finish </li></ul>
  16. 16. What Influences Perceived Quality of Service ? Appearance Reliability Competence Responsiveness Empathy
  17. 17. The Value of Perceived Quality <ul><li>Reason-to-Buy </li></ul><ul><li>Differentiate/Position </li></ul><ul><li>A Price Premium </li></ul><ul><li>Channel Member Interest </li></ul><ul><li>Brand Extensions </li></ul>
  18. 18. Brand Association A brand association is anything &quot;linked&quot; in memory to a brand. Thus, McDonald's could be linked to a character such as Ronald McDonald, a consumer segment such as kids, a feeling such as having fun, a product characteristic such as service, or a symbol such as the Golden Arches.
  19. 19. Some Types of Associations <ul><li>Product Attributes </li></ul><ul><li>Customer Benefits </li></ul><ul><li>Relative Price </li></ul><ul><li>Lifestyle/Personality </li></ul><ul><li>Celebrity/Person </li></ul><ul><li>Use/Application </li></ul>
  20. 20. The Value of Brand Associations <ul><li>Help Process/Retrieve Information </li></ul><ul><li>Differentiate/Position </li></ul><ul><li>Reason-to-Buy </li></ul><ul><li>Create Positive Attitudes/Feelings </li></ul><ul><li>Basis for Extensions </li></ul>
  21. 21. Maintaining Associations <ul><li>Be consistent over time </li></ul><ul><li>Be consistent over elements of the marketing program </li></ul><ul><li>Manage disasters in order to minimize their damage </li></ul>
  22. 22. Criteria for Brand Name Selection <ul><li>Be easy to learn and remember </li></ul><ul><li>Suggest the product class </li></ul><ul><li>Support a symbol or slogan </li></ul><ul><li>Suggest desired association without being boring or trivial </li></ul><ul><li>Not suggest undesired associations </li></ul><ul><li>Be distinctive </li></ul><ul><li>Be available and protectable legally </li></ul>
  23. 23. Source of Reference: David Aaker, Managing Brand Equity : Capitalizing on the Value of A Brand Name , Free Press