Brand equity
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This document discusses brand equity and how to build customer-based brand equity. It defines brand equity and discusses its advantages. The key sources of brand equity are brand awareness, image, and associations. Consumer-based brand equity is influenced by differential effects, brand knowledge, and consumer response to marketing. The brand pyramid shows the steps to build brand identity, meaning, response, and relationships. Building brand equity involves choosing brand elements, developing marketing programs, and leveraging secondary associations. Managing brand equity long-term requires defining brand hierarchy, product mix, enhancing equity over time, and establishing equity across market segments.
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Brand equity
- 1. Brand Equity Dr. Gopal Thapa Tribhuvan University Kathmandu Only for academic use 1
- 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 Only for academic use 2
- 3. Definitions The differential effect of brand knowledgeon consumer response to the marketing of the brand Only for academic use 3
- 4. Brand Equity- Advantages 1. Brand equity as a bridge Reflection of the Past Direction for the future 2. Focus and Guidance Only for academic use 4
- 5. Sources of Brand Equity 1. Brand Awareness- recognition & recall Learning advantages Brands become part of the consideration set Affects Choices of consumers Only for academic use 5
- 6. Sources of Brand Equity 2. 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 Only for academic use 6
- 7. Consumer Based Brand Equity CBBE – differential effect that brand knowledge has on the consumers response to the marketing of that brand. 3 key elements 1. Differential effect 2. Brand knowledge 3. Consumer response to marketing Power of the brand lies in the mind of the consumers. Only for academic use 7
- 8. CBBE Pyramid Brand Salience Consumer- Brand Resonance Consumer Judgment Consumer Feelings Brand Performance Brand Imagery 4 Bond – Strong relationship 1 Broad Awareness 2 Differentiators 3 Emotional and Intellectual influence Only for academic use 8
- 9. Sub-dimensions of brand building blocks Salience Resonance Judgments Feelings Performance Imagery Loyalty Attachment Community Engagement Quality Credibility Consideration Superiority Warmth, Fun Excitement, Security, Social Approval, Self-Respect 4 Brand Relationships (WHAT About You AND ME?) 1 Brand Identity (WHO Are You?) 2 Brand Meaning (WHAT Are You?) 3 Brand Response (WHAT About You?) User Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency, & Empathy Style and Design; Price Category Identification Needs Satisfied Only for academic use 9
- 10. 4 Steps to Brand building 1. Identify the brand with customers based on need or product class 2. Brand Meaning in the minds of customers by linking tangible &intangible to the brand 3. Response 4. Relationship Only for academic use 10
- 11. Brand Pyramid 1. Identity i. Salience - Category Identification Need Satisfaction Only for academic use 11
- 12. Brand Pyramid 2. Meaning i. Performance – ▪ Product Reliability, durability, serviceability ▪ Service effectiveness, efficiently, empathy ▪ Style & design ▪ Price Only for academic use 12
- 13. Brand Pyramid 2. Meaning ii. Imagery- User profiles Usage situations Personality & Values History & experiences Only for academic use 13
- 14. Brand Pyramid 3. Response i. Judgments- Quality Credibility Consideration Superiority ii. Feelings- Warmth Fun Excitement Security Self Respect Social Approval Only for academic use 14
- 15. Brand Pyramid 4. Relationships i. Resonance- Loyalty Attachment Community- Apple, Harley Davidson Engagement – Nepal police club Nepal Commerce Campus Only for academic use 15
- 16. Building Customer-Based Brand Equity 1. Brand building tools and objectives 2. Consumer knowledge effects 3. Branding Benefits Only for academic use 16
- 17. 1. Brand building tools and objectives Choose Brand Elements Brand name Logo Symbol Character Packaging Slogan Memorability Meaningfulness Likability Transferability Adaptability Protectability Only for academic use 17
- 18. Brand building tools and objectives Developing Marketing Programs Product Price Distribution Channels Communications Tangible and intangible benefits Value Perceptions Integrate “Push” & “ Pull” Mix and match options Ref: Strategic Brand Mgmt. – Kevin Kelly Only for academic use 18
- 19. Brand building tools and objectives Leverage on secondary associations Company Country of origin Channels of Dist. Other Brands Endorse or Event Awareness Meaningfulness Transferability Only for academic use 19
- 20. Consumer Knowledge Effects Brand Awareness Depth Recall Recognition Breadth Purchase Consumption Brand Associations Strong Relevance Consistence Favorable Desirable Deliverable Unique Points of parity Points of difference Only for academic use 20
- 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 Only for academic use 21
- 22. Managing Customer Brand Equity 1. Define Brand hierarchy 2. Define Brand- Product mix 3. Enhance Brand Equity over time 4. Establish B.E. over market segments Only for academic use 22
- 23. Managing Customer Brand Equity Define Brand hierarchy Principle of Simplicity Principle of relevance Principle of differentiation Principle of prominence Principle of commonality Only for academic use 23
- 24. Managing Customer Brand Equity Define Brand- Product mix Brand extensions Brand Portfolio Only for academic use 24
- 25. Managing Customer Brand Equity Enhance Brand Equity over time A. Brand Reinforcements B. Brand revitalization Only for academic use 25
- 26. Managing Customer Brand Equity Establish B.E. over market segments Identify differences in consumer behavior Adjust Branding program Only for academic use 26
- 27. Thank You Only for academic use 27