Brand equity represents the added value of a brand, impacting consumer perception, market success, and firm profitability. It consists of brand awareness, associations, perceived quality, and loyalty, which are crucial for effective marketing and competitive advantage. High brand equity can lead to increased customer loyalty, improved margins, and the potential for successful brand extensions.

1. BRAND EQUITY

2. 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
A set of asset and liabilities linked to a brand, its
name, symbol, that add to or subtract from the value provided by
a product or service to a firm and/or to that firm’s customers.

3. Brand Equity – Value to Customers
 Interpretation/Processing of
information.
 Confidence in the Purchase decision.
 Use satisfaction.
Brand Equity – Value to Company
 Efficiency & Effectiveness of marketing
programs.
 Brand Loyalty.
 Prices / Margins.
 Brand Extensions.
 Trade Leverage.
 Competitive Advantage.

4. Brand Equity

5. Brand Awareness
Extent to which a brand is recognized by
potential customers, and is correctly associated with a
particular product. Expressed usually as a percentage of target
market, brand awareness is the primary goal of advertising in
the early months or years of a product's introduction.

6. How to Achieve Awareness..?
 Be different & memorable
 Involve a slogan or jingle
 Symbol exposure
 Publicity
 Event sponsorship
 Consider brand extensions
 Using cues
 Recall requires repetition
 The recall bonus

7. Brand Association
The extent to which a particular product or service is identified
within its product or service category.

8. Value of Brand Association
Help Process/Retrieve Information
Differentiated
Basis For Extensions
Create Positive Attitude / Feelings
Reason To Buy

9. Perceived Quality
Consumer's opinion of a product's (or
a brand's) ability to fulfill his or her expectations. It
may have little or nothing to do with the actual
excellence of the product, and is based on the firm's
(or brand's) current public image (see corporate
image), consumer's experience with the firm's other
products, and the influence of the opinion leaders,
consumer's peer group, and others.

10. Perceived Quality Dimensions
Product
 PERFORMANCE
 FEATURES
 CONFORMANCE
 RELIABILITY
 SERVICEABILITY
 DURABILITY
 FIT & FINISH
Service
 TANGIBLES
 RELIABILITY
 COMPETENCE
 RESPONSIVENESS
 EMPATHY

11. Brand Loyalty
The extent of the faithfulness of consumers to a particular
brand, expressed through their repeat purchases, irrespective
of the marketing pressure generated by the competing brands

12. Source: Filip Wouters

13. Value of Brand Loyalty
 Attracting New Customers.
 Reduced Marketing Costs.
 Trade Leverage.
 Provide time to respond to
competitive threats.

14. Creating & Maintaining Brand Loyalty
 Treat The Customer Right.
 Stay Close To The Customer.
 Measure/Manage Customer Satisfaction.
 Create Switching Costs.
 Provide Extras.
Brand Loyalty

15. Brand Identity
The visible elements of a brand (such
as colours, design, logotype, name, symbol)
that together identify and distinguish the
brand in the consumers' mind.

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