brand equity

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Brand Equity

Concept

Sources

Four steps of brand building

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Brand Equity

• It is the willingness for someone to continue to purchase a particular brand or not.

• The added value to the firm, the trade, or the customer with which a given brand endows a product.

• Brand equity subsumes brand strength and brand value ( where brand strength = set of associations and behaviours by customers which permits it to enjoy advantages,

and brand value = financial outcome of management’s ability to leverage brand strength via tactical & strategic actions)

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Building brand equity

Brand Elements

Marketing Programs involving 4Ps

Leverage of Secondary Associations

Brand Awareness

Depth

- Recall

-Recognition

Breadth

-Purchase

-Consumption

Brand Associations

Strong

Relevance,Consistency

Favourable

Desirable, Deliverable

Unique

Point of parity, Point of difference

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Four steps of brand building

1. Brand identification and association with customers/customer need

2. Establish the totality of brand meaning

3. Proper customer responses to this brand identification and meaning

4. Convert brand response to create an intense, active loyalty relationship between customers and the brand

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Fundamental questions/branding ladder

Brand Identity

Who are you?

Brand Meaning

What are you?

Brand Responses

What about you? What do I think or feel about you?

Brand Relationships

What about you and me?

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Brand Equity Pyramid

Salience

Performance Imagery

Judgements Feelings

Resonance

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• Brand Salience• Awareness aspects of the brand• Linking the brand through brand name, logo, symbol etc

to certain associations• The better the customer understands which need the

brand satisfies, the better the salience• Breadth and depth of awareness• Eg: Tropicana at basic level, customers should recognize

its logo, packaging - Whenever buying orange juice Tropicana should come to mind – a set of needs should be satisfied in the mind

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• Brand Performance• Product itself is at the heart of brand equity• Does the brand satisfy utilitarian, aesthetic, and

economic needs and wants?• The strongest positioning involves performance

advantages of some kind• Eg: BMW – Sheering driving pleasure• Five important factors: primary ingredients and

secondary features, product reliability, service, style and design, price

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• Brand Imagery• More intangible aspects of the brand• Imagery can be formed directly (from a

consumer’s own experiences) or indirectly (depiction of same considerations in ads)

• Four categories: User profiles, Purchase and usage situations, Personality and values, History and heritage

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• Brand Judgements• Customer’s personal opinions and evaluations – a result

of brand performance and imagery• Four important criteria

– Brand quality

Eg: Taj Hotels stand for location convenience, comfort, appearance, service, facilities, security, prices

– Brand credibility

Eg: Aashirwaad Aata has to be good because it is an ITC brand– Brand consideration

Eg: “I’m Loving It”– Brand superiority

Eg: India’s largest selling diesel car

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• Brand Feelings• Customer’s emotional responses and reactions• Six important types of brand-building feelings:

Warmth

Fun

Excitement

Security

Social Approval

Self-respect

Experiential and immediate

Private and enduring

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• Brand Resonance• The ultimate relationship and level of

identification that the customer has with the brand

• Eg: High resonance include Harley-Davidson, Levis,

• The depth of the psychological bond• Resonance can be broken into 4 categories:• Behavioural loyalty (loyalty value), Attitudinal

attachment, Sense of community, Active engagement

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Ways of building resonance

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Ways of building resonance

brand equity

Documents