brandequityppt

7/28/2019 brandequityppt

1/23

Brand Equity

Brand equity has just as much effect

on stock price as do earnings.

Raj Mohan and Ranjith


2/23

Brand Equity/Raj Mohan And Ranjith

A brand is a name, term, sign, symbol, or design, ora combination of them intended to identify the goods

and services of one seller or group of sellers and to

differentiate them from those of competition.

:-American Marketing Association

Brand


3/23


A product is something that is made in a factory; a

brand is something that is bought by a customer. A

product can be copied by a competitor, a brand isunique. A product can be quickly outdated; a

successful brand is timeless.

A brand is something that resides in the minds ofconsumer.


4/23


Name DesignIdentifies

product/service

of seller and

differentiates from

competitors

A Brand Is.


5/23

The Role Of Brand


ConsumersIdentification of the source of product

Assignment of responsibility to product maker

Risk reducer

Search cost reducer

Promise, bond, or pact with maker of product

Symbolic device

Signal of quality


6/23


Manufacturers

Means of identification to simplify handlingor tracingMeans of legally protecting unique featuresSignal of quality level to satisfied customers

Means of endowing products with uniqueassociations

Source of competitive advantageSource of financial returns


7/23


Brand Equity

Brand equity is the added value that endowed to

products and services. This value may be reflected in

how consumers think, feel, and act with respect to the

brand, as well as the prices, market share andprofitability that the brand commands for the firm.

Brand equity is an important intangible asset that has

psychological and financial value to the firm.


8/23


Brand equity


9/23



10/23



11/23


Customer based approaches to brand equity

The brand is viewed from the perspective of the

customer, an individual or an organization.The power of the brand lies in what customers have

seen, read, heard, learned, thought and thought

about the product over time.

A brand is said to have positive customer brandequity when consumers react favorably to a

product.

A brand is said to have negative brand equity if

consumers react less favorably to the product.


12/23


Brand equity models

Brand Asset Valuator:Developed by Advertising agency Young and Rubicam(Y&R).According to BAV there are four pillars of brand equity:-

Differentiation

Relevance

Esteem

Knowledge

Differentiation and relevance point to the brands future value

and Esteem and acknowledge reflects the past performance ofthe firms.


13/23


Aaker Model:Viewed by UC-Berkeley professor David Aaker.

There are a set of five categories of brand assets and

liabilities which add value to the product.

They are:

Brand loyalty

Brand awareness

Perceived quality

Brand associations

Other proprietary assets


14/23


15/23


Brand resonance:It also views brand building as an ascending, sequential

series of stepsEnsuring identification of the brand with customers

minds with a specific product class or customer

need.

Firmly establishing the brand into the mind of theconsumer.

Eliciting proper customer response to in terms of

brand related judgment and feelings.

Converting brand response to create to create anintense, active loyalty relationship between

customers and the brand.


16/23


Measuring Brand Equity:There are two approaches for measuring brand

equity.Indirect approach and direct approach.

Brand Audit:

- is a consumer-focused exercise that involves a seriesof procedures to access the heath of the brand,

uncover its sources of equity and suggest ways to

improve and leverage its equity.


17/23


Brand Audits consist of two steps:Brand inventory and brand explanatory

The purpose of brand inventory is to provide a

current, comprehensive profile of how all the

products and services sold by a company are

marketed and branded.

The brand explanatory is research activity

conducted to understand what consumers think and

its corresponding product category to identify

sources of brand equity.


18/23


Brand tracking:Tracking studies collect information from the

consumers on a routine basis over time.

Tracking studies employ quantitative study

methods.

It provides a basis for decision makingIt provides insights to marketing activities


19/23

Brand Valuation


It is concerned of estimating the total

financial value of the brand.


20/23


Brand Management

Brand Management needs a long term view of

marketing decisions. Consumer responses to

marketing activity depend on what they know and

remember about a brand.

Brand reinforcement:Brand equity is reinforced by marketing actions

that consistently convey the meaning of the brandsto consumers in terms of:

The product and

Superiority


21/23


Reinforcing brand equity needs innovation

and relevance through out the marketing

program. Marketers must introduce new

products to satisfy the target consumers

Brand Revitalization

A strategy to recapture lost sources of brand

equity and identify and establish new sources of

brand equity. This may include product

modification or brand repositioning.


22/23


Doubts and Clarifications


23/23


brandequityppt

Documents