Brand equity refers to the financial value and brand assets or liabilities that accrue to a product or service due to marketing programs and brand awareness. It is measured by the differential effect of brand knowledge on consumer responses. Sources of brand equity include brand awareness, image, and associations that are strong, favorable, unique, and link the brand to attributes and benefits. Consumer-based brand equity is the differential effect of brand knowledge on consumer responses to marketing and is built through brand salience, performance, imagery, judgments, feelings, and relationships. Building brand equity involves identifying the brand, developing brand meaning and imagery, influencing consumer responses and judgments, and creating relationships.

1. Brand Equity

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. Definitions The differential effect of brand knowledge on consumer response to the marketing of the brand

4. Brand Equity- Advantages Brand equity as a bridge Reflection of the Past Direction for the future Focus and Guidance

5. Sources of Brand Equity Brand Awareness- recognition & recall Learning advantages Brands become part of the consideration set Affects Choices of consumers

6. Sources of Brand Equity 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. Consumer Based Brand Equity CBBE – differential effect that brand knowledge has on the consumers response to the marketing of that brand. 3 key elements Differential effect Brand knowledge Consumer response to marketing Power of the brand lies in the mind of the consumers.

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

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

10. 4 Steps to Brand building Identify the brand with customers based on need or product class Brand Meaning in the minds of customers by linking tangible &intangible to the brand Response Relationship

11. Brand Pyramid Identity Salience - Category Identification Need Satisfaction

12. Brand Pyramid Meaning Performance – Product Reliability, durability, serviceability Service effectiveness, efficiently, empathy Style & design Price

13. Brand Pyramid Meaning Imagery- User profiles Usage situations Personality & Values History & experiences

14. Brand Pyramid 3. Response Judgments- Quality Credibility Consideration Superiority Feelings- Warmth Fun Excitement Security Self Respect Social Approval

15. Brand Pyramid 4. Relationships Resonance- Loyalty Attachment Community- Apple, Harley Davidson Engagement – clubs-Gang of Girls, MTV, WOM by customers themselves

16. Building Customer-Based Brand Equity Brand building tools and objectives 2. Consumer knowledge effects 3. Branding Benefits

17. 1. Brand building tools and objectives Choose Brand Elements Brand name Logo Symbol Character Packaging Slogan Memorability Meaningfulness Likability Transferability Adaptability Protectability

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

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

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

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. Managing Customer Brand Equity Define Brand hierarchy Define Brand- Product mix Enhance Brand Equity over time Establish B.E. over market segments

23. Managing Customer Brand Equity Define Brand hierarchy Principle of Simplicity Principle of relevance Principle of differentiation Principle of prominence Principle of commonality

24. Managing Customer Brand Equity Define Brand- Product mix Brand extensions Brand Portfolio

25. Managing Customer Brand Equity Enhance Brand Equity over time Brand Reinforcements Brand revitalization

26. Managing Customer Brand Equity Establish B.E. over market segments Identify differences in consumer behavior Adjust Branding program