Brand Equity

Brand Equity = strategic asset The positive differential effect of price and purchase Strong brand = Product Benefits x Distinct Identity x Emotional Values

Brands are built by performance, not advertising.

Prof. Sapna Modi

Characteristics of Strong Brands 

Provides superior delivery of desired benefits. 

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Maintain innovation and relevance for the brand. 

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(Apple, Virgin)

Communicate with a consistent voice. 

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(Gillette, Charles Schwab)

Establish credibility and create appropriate brand personality and imagery. 

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(Starbucks, FedEx, Amazon)

(Coca-Cola, Accenture)

Strategically design and implement a brand hierarchy and portfolio. 

(BMW, The Gap)

Strategic challenges for marketers and researchers    

Measuring brand equity Measuring marketing effectiveness A better new product process Measuring customer satisfaction

Brand Equity 

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Brand Equity consists of differential attributes underpinning a brand which gives increased value to the firms balance sheet - Chernatony and McDonald Brand Equity is a set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or services to a firms customers - David Aaker

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Brand Equity is the total accumulated value or worth of a brand, the tangilble and intangible assets that the brand contributes to its corporate parent, both financially and in terms of selling leverage. - By Upshaw Brand Equity is the totality of the brands perception, including the relative quality of products and services, financial performance, customer loyalty, satisfaction and overall esteem towards the brand. It is all about how the customers, consumers, employees, stakeholders feel about the brand - by Konapp

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Brand Equity is defined in terms of marketing effects uniquely attributable to the brands. - Keller

Brand equity 

Brand equity is the added value endowed to products and services. This value reflects in how consumer think, feel, and act with respect to the brand, as well as the price, market share, profitability that the brand commands for the firm.

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Is an important intangible asset that has psychological and financial value to the firm.

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Brand equity subsumes brand strengths and brand value.

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Brand strength is the set of association and behavior on part of customers, channels and firm that permit the brand to enjoy sustainable and differential competitive advantages

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Brand value is the financial outcome of management ability to leverage brand strengths

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Brand equity provides a common denominator for interpretation marketing strategies and assessing the value of the brand.

Building Brand Equity MARKETING IS THE ART OF BRAND BUILDING * IF YOU ARE NOT A BRAND, YOU ARE A COMMODITY. * THEN PRICE IS EVERYTHING AND THE LOW-COST PRODUCER IS THE ONLY WINNER!

Why is a Brand Worth Building? c yc l e f i L d Bran

e

Value

Product Time

Strong brands establish a long-lasting place in short-lived markets

When Does Positioning Strategy Convert to a Brand? When the positioning strategy evidence comes into contact with the customer And, the customer agrees with it, Time and time again

Customer based brand equity (CBBE) 

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The power of brand lies in what resides in the minds of customer. OR Differential effect that brand knowledge has on consumer response to the marketing of the brand.

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+ve CBBE when consumer react more favorably towards the product and the way it is marketed when the brand is identified as compared to when it is not.

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-ve CBBE if consumer react less favorably to make the marketing activity for the brand under same circumstances.

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Differential effect Brand knowledge Consumer response

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Brand equity as a bridge Brand equity provides marketers with a vital strategic bridge from their past to the future. 

Brand as a reflection of past.

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Brand as direction of future.

Brand promise is the marketer’s vision of what the brand must be and do for consumers. the true value and future prospect of a brand rest with consumers, their knowledge about the brand, and their likely response

Brand Identity Model 1)

CCBE pyramid or brand resonance pyramid.

2)

Brand Asset Valuator ( BAV power grid)

3)

BRANDZ

4)

AAKER Model

Relationships What about you & me Response What about You? Meaning what are you? Identity Who are you?

Intense, Active Loyalty

Resonance

Judgment

Feeling

Performance

Imagery

Salience

Positive accessible reaction

Strong Favourable & unique brand association

Deep, board Brand awareness

Brand Resonance Pyramid or CBBE Pyramid

Leadership

Niche/ Unrealized Potential

Declining

Brand Strength ( differentiation and relevance) New/ Unfocused

Eroding

Brand Stature ( Esteem and Knowledge)

Brand Asset Valuator ( BAV power grid)

BRANDZ 

This model is developed by Millward Brown.

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According to this brand building involves a sequential series of steps, where each step is contingent upon successfully accomplishing the previous step. Objectives of each steps are

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Presence:- Do I know about it?

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Relevance:- Does it offer me something?

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Performance:- Can it deliver?

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Advantage:- Does it offer something better than others?

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Bonding:- Nothing else can beat it.

AAKER Model 

Brand equity as a set of five categories of brand asset and liabilities linked to a brand that add to or subtract from the value provided by a product/ service

1)

Brand loyalty

2)

Brand awareness

3)

Perceived quality

4)

Brand association

5)

Other proprietary asset

Building Brand Equity VALIDATED POSITIONING STRATEGY

INTEGRATED MARKETING, SALES PROGRAMS

QUALITY PRODUCT/SERVICE EXPERIENCE

BRAND EQUITY

MANAGEMENT TEAM CREDIBILITY

LONG-TERM PERSPECTIVE

SUPPORTING CORPORATE CULTURE ALIGNED EMPLOYEE BASE

Building Brand Equity Positioning Strategy Statement

Company Business Strategy

EXISTING • ________ • ________ • ________ • ________ • ________

Positioning Strategy NEEDED • ________ • ________ • ________ • ________ • ________

Market Leverage

Messages, Brand Strategy and Programs

Strategy

Strategy Evidence

Company Investors Sales Channels Target Accounts Partners Industry & Financial Analysts Trade & Business Press

Market Entry Customer Segment

Building Brand Equity 1)

2)

3)

The initial choice for the brand elements or identities making up the brand.( logo, URL, brand names, symbols) The product and service and all accompanying marketing activities and supporting marketing programs. Other associations indirectly transferred to the brand by liking it to some other entity( person , place, thing)

Criteria for choosing brand elements 1) Memorability easily recognized easily recalled e.g. Tide, Crest etc 2) Meaningful descriptive persuasive

e.g. Duracell

3) Likeable Fun and interesting rich visual and verbal imagery aesthetically pleasing

4) Transferable within and across product categories. across geographic boundaries and culture. 5) Adoptable Flexible Updateable 6) Protectable Legally competitively

e.g. Xerox ,7up

Thank you