Brand equity refers to the added value provided to products and services due to their brand. It is represented by the assets and liabilities linked to a brand's name and symbol. Brand equity creates value for both customers and firms through improved perceptions, greater loyalty, and additional opportunities like extensions. Building strong brand equity requires careful planning and long-term investment in areas like the brand's elements, marketing activities, and customer knowledge. Measuring brand equity can be done through audits, tracking, and valuation to manage brands effectively over time.
2. What is Brand Equity?
Brand equity is the added value endowed on products and
services, which may be reflected in the way consumers, think,
feel, and act with respect to the brand.
3. Brand equity
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
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
4. Brand equity: Key aspects
Brand equity is a set of assets
Management of brand equity involves investment to create and
enhance these assets
Each brand equity asset creates value in a variety of very
different ways
It is imperative to be sensitive to the ways in which strong
brands create value
Brand equity creates value for customer and firm
For assets or liabilities to underlie brand equity, they must
be linked to name/symbol of the brand
5. Brand Equity as a Bridge
• The quality of investment in brand building is the critical
factor, not necessarily the quantity
Brand Promise
• Marketer’s vision of what the brand must
be and do for the consumers.
6. Key Benefits of Brand Equity
Improved perceptions of product performance
Greater Loyalty
Less vulnerability to competitive marketing
Less vulnerability to marketing crises
Larger Margins
More inelastic consumer response to price increase
Additional Brand extension opportunities
7. CREATING BRAND EQUITY
BUILDING A STRONG BRAND REQUIRES CAREFUL PLANNING &
GREAT DEAL OF LONG-TERM INVESTMENT. AT THE HEART OF A
SUCCESSFUL BRAND IS A GREAT PRODUCT OR SERVICE, BACKED BY
A CREATIVELY DESIGNED & EXECUTED MARKETING.
8. Drivers of Brand Equity
Brand Elements
Marketing Activities
Meaning Transference
12. Slogans
Like a good neighbor,
State Farm is there
Just do it
Nothing runs like a
Deere
Save 15% or more in 15
minutes or less
We try harder
We’ll pick you up
Nextel – Done
Zoom Zoom
I’m lovin’ it
Innovation at work
This Bud’s for you
Always low prices
17. Table 10.2 The 10 Most Valuable Brands
Brand 2006 Brand Value (Billions)
Coca-Cola $67.00
Microsoft $56.93
IBM $56.20
GE $48.91
Intel $38.32
Nokia $30.13
Toyota $27.94
Disney $27.85
McDonald’s $27.50
Mercedes-Benz $22.13