grp 7 brand equity

8/3/2019 Grp 7 Brand Equity

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A brand is a name, term, sign, symbol, ordesign, or a combination of them,

intended to identity the goods or services of

one seller or group of sellers andtodifferentiate them from those of competitors.

- American Marketing Association

CONSUMERSBUYPRODUCTS;

THEYCHOOSEBRANDS!


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A brand can convey up to 5 levels of meanings:

Attributes

BenefitsValues

Culture

Personality

Users


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Brand signals the source of the product.

Protects customer and producer fromcompetitors who have identical

products Consumers form relationships with

brands, not products or companies

Brand makes an emotional and trust-based connection with consumer anddistinguishes it from competition


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Brand loyalty is the foundation ofbusiness

Every purchase opportunity presents itself

an excuse to change brands and shiftloyalties

Father buys cigarettes every day

Mother buys diapers every week

Family buys groceries every month

Branding determines status quo vs. shift


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Proliferation of competitors.

Pressure to compete on price.

Fragmenting markets and media. Complex brand strategies and

relationships.

Bias towards changing strategies.

Bias against innovation.

Pressure to invest elsewhere.


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Brand Equity is a set of assetslinked to a brands name andsymbol that adds to the value

provided by a product or serviceto a firm and/or that firmscustomers

Brand Equity is a set of liabilities

linked to a brands name andsymbol that subtracts from thevalue provided by a product orservice to a firm and/or that firms

customers


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Brand equity is a set of assets Management of brand equity involves

investment to create and enhance theseassets

Each brand equity asset creates valuein a variety of very different ways It is imperative to be sensitive to the ways

in which strong brands create value Brand equity creates value for

customer and firm


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Brand equity assets can helpcustomers interpret, process andstore huge quantities of info aboutproducts / brands

It can affect customers confidencein purchase decision Due to past-use experience or familiarity

with brand

Both perceived quality and brandassociations can enhancecustomers satisfaction with useexperience Knowing brand isArrow can make user

feel different


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Brand equity can enhance programs toattract new customers or recapture old ones

Perceived quality, associations and knownname provide reasons to buy & affect usesatisfaction

Usually allows higher margins by permittingboth premium pricing and reducedpromotions

Can provide leverage in the distribution

channel Brand equity assets provide a competitive

advantage that present a barrier tocompetitors


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Brand EquityCategories


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Brand Equity can be grouped into five

categories:

Brand Loyalty

Name Awareness

Perceived Quality

Brand Associations

Other Brand Assets


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Attachment: High measure of acustomers attachment towards a

brand.

Loyalty: A highly brand loyal

customer is unlikely to switchbrands.

Bargaining Power: Allowing the

company to bargain with channel

members. Highly loyal customers are difficult

to be wooed and act as deterrent to

competitive action.


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Familiarity: Customers prefer to

buy a brand familiar to them.

Recognition: The ability of a

potential buyer to recognize or

recall that a brand belongs to a

certain product category.

Awareness: A high level of

awareness signals a well

established brand, Enhancescustomers confidence in thebrand.


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Consumer perception:

Perceived quality is the

consumers perception of

the overall quality or

superiority of a product.

Quality: Quality as

interpreted by the customers

rather than what the brand

actually delivers. Allows the company to

adopt premium pricing.


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Memory: Brandassociation is anything

linked in memory, to a

brand.

A set of associations

result in formation of

the brand image.

Provide a basis for

extension into new

product categories.


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Patents, Trademarks and Channel relationships .

Trademark: A trademark refers to name, symbol, logo, package

design etc., which is registered with a company.

Patents: Patents can provide tangible basis of differentiation


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Equity


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Marketers build brand equity by creating theright brand knowledge structures with the right

customers. Philip Kotler

There are 3 main elements in building BrandEquity:

Choice of Brand Elements

Product/Service & supporting marketingactivities

Other associations indirectly transferred to thebrand by linking it to some other entity.


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Memorable

Meaningful

Likeability

Transferable

Adaptable

Protectable


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Personalization

Integration

Internalization


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Creation of new brand associations

Effects on existing brand knowledge Awareness and knowledge of the entity

Meaningfulness of the knowledge of theentity

Transferability of the knowledge of the entity

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Brand associations may themselves be linked

to other entities, creating secondaryassociations: Company (through branding strategies)

Country of origin (through identification of productorigin)

Channels of distribution (through channels strategy)

Other brands (through co-branding)

Celebrity spokesperson (through endorsements)

Events (through sponsorship)

Other third-party sources (through awards andreviews)

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Building Brand Equity using


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Building Brand Equity usingIntegrated MarketingCommunications


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Building a strong brand involves a series of

steps as part of a branding ladder

A strong brand is also characterized by a

logically constructed set of brand building

blocks.

Identifies areas of strength and weakness

Provides guidance to marketing activities

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Brand Name

Slogans

Colors Symbols

Logos

Taglines Cartoons & Animations

Objects


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The value of a brandand thus its equityis ultimately derived in the marketplacefrom

the words and actions of consumers.

Consumers decide with their purchases,based on whatever factors they deemimportant, which brands have moreequity than other brands.


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Market research approach used whenthere is little to choose functionallybetween the products


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Projective techniques Projective techniques are diagnostic tools to

uncover the true opinions and feelings of

consumers when they are unwilling orotherwise unable to express themselves onthese matters.

Consumers are presented with an

incomplete stimulus and asked to completeit or given an ambiguous stimulus that maynot make sense in and of itself and areasked to make sense of it.


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Completion and interpretation tasks Classic projective techniques use incomplete or

ambiguous stimuli to elicit consumer thoughtsand feelings.

Comparison tasks Technique that may be useful when consumers

are not able to directly express their perceptionsof brands

Consumers are asked to convey theirimpressions by comparing brands to people,countries, animals, activities, fabrics,occupations, cars, magazines, vegetables,nationalities, or even other brands.


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Ethnographic and observational

approaches

Fresh data can be gathered by directlyobserving relevant actors and settings

Consumers can be unobtrusively

observed as they shop or as they

consume products to capture every

nuance of their behaviour.

Marketers such as Procter & Gamble

seek consumers permission to spendtime with them in their homes to see how

they actually use and experience

products.


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Although qualitative measures are usefulto identify and characterize the range of

possible associations to a brand, a morequantitative portrait of the brand often isalso desirable to permit more confidentand defensible strategic and tactical

recommendations.

Quantitative research typically employs

various types of scale questions so thatnumerical representations andsummaries can be made.


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Quantitative research techniques

Awareness

Brand awareness is related to the strength of thebrand in memory, as reflected by consumers'ability to identify various brand elements (i.e., thebrand name, logo, symbol, character, packaging,and slogan) under different conditions. Brand

awareness relates to the likelihood that a brandwill come to mind and the ease with which it doesso given different type of cues.

Recognition

Recognition processes require that consumers beable to discriminate a stimulus -- a word, object,image, etc. -- as something they have previouslyseen.

Simple yes or no tasks


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Recall

To determine whether the brand elements willactually be recalled under variouscircumstances, measures of brand recall arenecessary.

Brand recall relates to consumers' ability toidentify the brand under a variety ofcircumstances.

With brand recall, consumers must retrieve

the actual brand element from memorywhen given some related probe or cue.

More demanding than recognition technique

Recall of Porsche 944 German sports car


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Image

Brand awareness is not just sufficient

For most customers in most situations, otherconsiderations, such as the meaning orimage of the brand as reflected by theassociations that consumers hold toward thebrand, also come into play.

Image of the brand is influenced by twobroad levels of association


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The purpose of measuring higher-order brand associationsis to find out how consumers combine all of the specificconsiderations about the brand in their minds to formdifferent responses.

Brand judgments(personal opinions)

Brand quality Brand credibility Brand consideration Brand superiority

Brand feelings (emotional responses and reactions)

Warmth Fun Excitement Security Social approval Self-respect


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Managing

Brand Equity Brand equity is:


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Brand equity is:

A set of brand assets and liabilities linked to a brand.

Its main component being:

NAME AWARENESSPERCEIVED QUALITY

BRAND ASSOCIATIONS

BRAND LOYALTY


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BRAND AWARENESS

Is when people recognize your brand as yours. Brand awareness is the

ability of potential buyer to recognize or recall that a brand is a member of a

certain product category,

IT CONSISTS OF BOTH

Brand Recognition, which is the ability of consumers to confirm that they

have previously been exposed to your brand,

Brand Recall, which reflects the ability of consumers to name your brand

when given the product category, category need, or some other similar cue.


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Mercedes and BMW

They have established their brand names as synonymous

with high-quality, luxurious automobiles.

Years of marketing, image building, brand nurturing and

quality manufacturing has lead consumers to assume a high

level of quality in everything they produce. Consumers arelikely to perceive Mercedes and BMW as providing superior

quality to other brand name automobiles, even when such a

perception is unwarranted.

BRAND ASSOCIATIONS:


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BRAND ASSOCIATIONS:

Brand association with certain emotions, feelings,

and qualities and also with some tangible benefits

like freebies.

Though often difficult to quantify, associations

with which the brand is consciously linked - say

with a sports event, a charity, a celebrity, a joint

venture - can enhance a brand's perceived image

Thus McDonald's could be linked to a character such as Ronald


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Thus, McDonald s could be linked to a character such as Ronald

McDonald, a consumer segment such as kids, a feeling such as

having fun, a product characteristic such as service, or a symbolsuch as the Golden Arches.

BRAND LOYALTY:


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BRAND LOYALTY:

Consumer returns back to your product even after

having a choice of many other products in market.This asset combines characteristics associated with :

Image (Brand Loyalty, Name Awareness)

and

Impact (Customer Life Value and Price

Premium).

Managing Brand Equity when it is tied


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Managing Brand Equity when it is tied

up to one person.

Apple without SteveJobs

Steve Jobs dominates the tech world and culture. When

he stands before industry conferences, holds up agadget and says, this is cool, whatever it is becomescool. The Apple brand is known for design, but it is alsoknown for the guy who invented the PC as we know it in

his garage.


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Institutionalize the cult of personality. Coco Chanel has

become an icon. Though she passed away decades ago, her spirit

lives on. Calving Klein is transforming his company, stepping

back and letting others learn to keep his unique style going.

Find a successor. As apple did ,finding a successor for Steve

Jobs in the face of Tim Cook .

Diversify. Add new attributes to the base begun by the iconic

person.

grp 7 brand equity

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