module 1- brand and brand equity models
TRANSCRIPT
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MODULE 1- BRAND EQUITY
AND BRAND EQUITY MODELS
MBA V SEM, ITM-Bangalore
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BRANDING
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AGENDA
BD
C
B
C
B e
BrandDefinition, Scope, Importance of Branding
Case- Muji
Brand Equity Experts View
Customer based Brand Equity
Brand Equity Model Kellers Model
Elliot and Percys Brand Equity Model
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BRAND- DEFINITION
A A
B
AMA defines Brand as name, term, sign, symbolor design or combination of them, intended toidentify and differentiate the goods or services
of one seller to that of another. Branding involves creating mental structures and
helping consumers organize their knowledgeabout products and services in a way that
clarifies their decision making. Marketers can apply branding to physical
product, store, services, people etc..
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BRANDINGAS PER THE EXPERTS
Ac Al
S
S
According to Al Ries and Laura Ries, Brandingpresells the product or service to the user
Scott Bedbury admitted that consumers dont
truly believe theres a huge difference betweenproducts, which means that: Brands have to establish emotional ties with their
customers
Symbolic meaning becomes the instrument fordifferentiation and for forging the emotional bondwith the brand
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BRAND EQUITY- EXPERTS VIEW
Brand equity can be thought of as the additionalcash flow achieved by associating a brand withthe underlying product or service ( Alexander
Biel) Brand equity is the measurable financial value in
transactions that accrues to a product or servicefrom successful programs and activities related
to branding( J.Walker Smith) In simple words, brand equity is the added value
endowed on products and services
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BRAND EQUITY- EXPERTS VIEW
Understanding brand equity must come fromthe customers point of view as it is thecustomers sense of added value that will lead
to preference for a particular brand Financial consequences of brand equity will
follow from the consumers perception ofadded value.
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CUSTOMER BASED BRAND EQUITY
The CBBE model approaches brand equityfrom the perspective of the consumer
The basic premise of the CBBE model is thatthe power of a brand lies in what resides inthe minds of customers
From the perspective of the CBBE model,
brand knowledge is the key to creating brandequity
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BRAND KNOWLEDGEAWARENESS AND IMAGE
Brand Awareness Brand awareness is related to the consumers ability
to identify the brand under different conditions
Brand awareness consists of brand recognition andbrand recall performance
Brand Image The brand image can be defined as perceptions about
a brand as reflected by the brand associations heldin consumer memory.
A positive brand image is created by marketingprograms that link strong, favorable and uniqueassociations to the brand in memory
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CONSUMER PERSPECTIVE- BRAND
EQUITY
BRANDAWARENESS
BRANDSALIENCE
BRANDATTITUDE
BRANDLOYALTY
CONSUMER PERSPECTIVE OF BRAND EQUITY AS PER
ELLIOT AND PERCY
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BRAND ATTITUDE
Brand associations in memory must be strong,positive and unique to the brand in order tobuild a brand attitude that leads to strong
brand equity It reflects a persons knowledge and
assumptions about a brand and theiremotional associations with it
Brand loyalty is a function of brand equitywhen it results from genuine preference forit.
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BRAND LOYALTY MODEL
FRUSTRATED LOYAL
SWITCHABLE VULNERABLE
Perceived
risk in
switching
SATISFACTIONBRAND LOYALTY MODEL
PERCY AND ELLIOTLow
Low
High
High
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SUMMARIZED BRAND EQUITY MODEL
BRAND ATTITUDE
EMOTIONALASSOCIATION
FINANCIALVALUEBRAND LOYALTY
BRANDAWARENESS
ELLIOT AND PERCY
MODEL OF BE
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BRAND EQUITY MODEL (BEM)
Resonance
ents
eelin s
Perfor ance
I a ery
Salience
BRAND EQUITY PYRAMID BY KELLER
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BRANDPERFORMANCE AND IMAGERY
The tendency of the brand to be thought of in abuying situation is known as Brand Salience.A highly salient brand is one that has both depth
and breadth of brand awareness Brand Performance relates to the ways in which
the product or service attempts to meetcustomers more functional needs
Brand Imagery refers to more intangibleaspects of the brand and includes the ways inwhich brand attempts to meet customerspsychological or social needs
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CUSTOMERJUDGMENTS AND FEELINGS
Customer Judgments are customers personalopinions and evaluations about the brand.Customers generally make 4 types of judgments:
Brand Quality Brand Credibility
Brand Consideration
Brand Superiority
Customer Feelingsare customers emotionalresponses and reactions about the brand
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BRAND RESONANCE
Brand Resonance refers to the ultimaterelationship and the extent to which customersfeel that they are in sync with the brand.
Brand resonance can be broken down in followingcategories: Behavioral loyalty
Attitudinal attachment
Sense of community Active engagement
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THANK YOU