Brand Equity Models (1) (1)

7/30/2019 Brand Equity Models (1) (1)

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BRANDEQUITY

3/14/2013 1Dr.SOUREN SARKAR,SSEC


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BRAND

The American Marketing Association defines a

brand as a name, term, sign, symbol or

design, or a combination of them, intended to

identify the goods or services of one seller orgroup of sellers and to differentiate them from

those of competitors.



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THE ROLE OF BRAND

Consumers may evaluate the identical product

differently depending on how it is branded.

Consumers learn about brands through past

experiences with the product and find out

which brands satisfy their needs.

Simplify decision making and reduce risk.



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Brands also perform valuable functions for firms:

simplify product handling or tracing. help to organise inventory and accounting

records.

offers the firm legal protection for uniquefeatures or aspects of the product.

brand name -- trademarks

manufacturing processes -- patentspackaging -- copyrights & designs



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THE SCOPE OF BRANDING

Branding is endowing products and services with

the power of a brand.

Branding can be applied virtually anywhere a

consumer has a choice.

It is possible to brand a physical good (Pantene

shampoo), a service (Indian Airlines), a store (Big

Bazaar), a person (Rani Mukharjee), a place (thecity of Education), an organisation (UNICEF), or an

idea (freedom of speech).



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BRAND EQUITY

the added value endowed to products and

services.

how consumers think, feel, and act with

respect to the brand, as well as the prices,

market share and profitability that the brand

commands for the firm.

an important intangible asset that has

psychological and financial value to the firm.



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Consumer-based brand equity

Customer-based brand equity can be defined as thedifferential effect that brand knowledge has on

consumer response to the marketing of that brand.

Positive customer-based brand equity

Negative customer-based brand equity



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There are three key ingredients to this

definition.

Brand equity arises from differences in consumer response.

These differences in response are a result ofconsumersknowledge about the brand. Brand knowledge consists ofall the thoughts, feelings, images, experiences, beliefs, and

so on that become associated with the brand. Brands mustcreate strong, favourable and unique brand associationswith customers, as has been the case with Volvo (safety),hallmark (caring), and Harley-Davidson (adventure).

The differential response by consumers that makes up thebrand equity is reflected in perceptions, preferences, andbehaviour related to all aspects of the marketing of abrand.



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APPLE COMPUTERS

To create great things that change peoples lives

Open iPod DJ Parties

Apple spent $293 million to create 73 retail stores to fuel excitement for thebrand.

.....14 million visitors in 2003

.....more people can see and touch Apple productsand see what Apple can

do for themthe more likely Apple is to increase its market share, which is

still a tiny slice of the PC market.



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BRAND EQUITY MODELS

1. BRAND ASSET VALUATOR

2. AAKER MODEL3. BRANDZ4. BRAND RESONANCE



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1. BRAND ASSET VALUATOR

Developed by Advertising agency Young and Rubicam (Y&R) .

There are four key componentsor pillarsof brand

equity, according to BAV:

Differentiation measures the degree to which a brand is seenas different from others.

Relevance measures the breadth of a brands appeal.

Esteem measures how well the brand is regarded and

respected. Knowledge measures how familiar and intimate consumers

are with the brand.



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Differentiation and Relevance determine Brand Strength.

Esteem and Knowledge together create Brand Stature.

BAV POWER GRID3/14/2013 12Dr.SOUREN SARKAR,SSEC


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2. AAKER MODEL

Former UC-Berkeley marketing professor DavidAaker views brand equity as a set of fivecategories of brand assets and liabilities.

Brand loyalty

Brand Awareness

Perceived Quality

Brand Associations Other proprietary assets such as patents,

trademarks, and channel relationships.



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According to Aaker, a particularly important concept for

building brand equity is brand identitythe unique set of

brand association that represent what the brand stands for

and promises to customers.Brand identity consists of 12 dimensions organised around 4

perspectives:

Brand-as-product (product scope, product attributes,

quality/value, uses, users, country of origin). Brand-as-organization (organizational attributes, local versus

global).

Brand-as-person (brand personality, brand-customer

relationships). Brand-as-symbol (visual imagery/ metaphors and brand

heritage).



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3. BRANDZ

Marketing research consultants Millward Brown and

WPP have developed the BRANDZ model of brand

strength, at the heart of which is the Brand Dynamics

pyramid.

Bonding. Nothing else beats it?

Advantage. Does it offer something better than others? Performance. Can it deliver?

Relevance. Does it offer me something?

Presence. Do I know about it?



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4. BRAND RESONANCEBrand salience elates to how often and easily the

brand is evoked under various purchase or consumptionsituations.

Brand performance relates to how the product orservice meets customers functional needs.

Brand imagery deals with the extrinsic properties of the

product or service, including the ways in which the brand

attempts to meet customers psychological or socialneeds.

Brand judgments focus on customers own personal

opinions and evaluations.

Brand feelings are customers emotional responses

and reactions with respect to the brand.

Brand resonance refers to the nature of the relationshipthat customers have with the brand and the extent to

which customers feel that they are in sync

with the brand.



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BUILDING BRAND EQUITY

The initial choices for the brand elements oridentities making up

the brand.

The product and service and allaccompanying marketing activities andsupporting marketing programs.

Other associations indirectly transferred tothe brand by linking it to some other entity(e.g., a person, place, or thing).



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CHOOSING BRAND ELEMENTS

Brand elements are those trademarkable devices that serveto identify and differentiate the brand.

Most strong brands employ multiple brand elements.

Nike has the distinctive swoosh logo, the empowering Just

Do It slogan, and the mythological Nike name based on thewinged goddess of victory.

Brand elements can be chosen to build as much brand as

possible. Based on its name alone, a consumer might expectColorStay lipsticks to be long-lasting and SnackWell to be

healthful snack foods.



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BRAND ELEMENT CHOICE CRITERIA

Memorable. How easily is the brand element recalled, recognised? Short

brand names such as Tide, Crest, and Puffs can help.

Meaningful. Does it suggest something about a product ingredient or the

type of person who might use the brand? Consider the inherent meaning

in names such as DieHard auto batteries.

Likeability. How aesthetically appealing do consumers find the brand

element? Concrete brand names such as Sunkist, Spic and Span, and

Firebird evoke much imagery.

Transferable. To what extent does the brand element add to brand equity

across geographic boundaries and market segments? Adaptable. How adaptable and updatable is the brand element? Betty

Crocker has received over eight makeovers through the yearsalthough

she is over 75 years old, she doesnt look a day over 35!!

Protectable. How legally protectable is the brand element? Can it be easily

copied?3/14/2013 19Dr.SOUREN SARKAR,SSEC


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DEVELOPING BRAND ELEMENTS

Before choosing a brand name

generating a list of possible names

debating their merits eliminating all but a few

testing them with target consumers

making a final choice.



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Today, many companies hire a marketing researchfirm to develop and test names.

association tests (what images come to mind?) learning tests (How easily is the name

pronounced?)

memory tests (How well is the nameremembered?)

preference tests (Which names are preferred?).

Of course, the firm must also conduct searches tomake sure the chosen name has not already beenregistered.



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10 MOST TRUSTEDBRANDS OF INDIA

NOKIA

COLGATE

LUX Hindustan Unilever Ltd.

LIFEBUOY Hindustan Unilever Ltd.

DETTOL

HORLICKS Glaxo Smith Kline

TATA SALT Tata Group

PEPSODENT

BRITANNIA

RELIANCE MOBILE Reliance Communications



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TOP 10 SERVICES ININDIA

RELIANCE COMMUNICATIONS

BHARTI ENTERPRISE

STATE BANK OF INDIA

LIFE INSURANCE COMPANY OF INDIA

BSNL

VODAFONE Vodafone Group

TATA INDICOM Tata Group

BANK OF INDIA

BIG BAZAAR Future Group

ICICI BANK



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BENEFITS OF BRANDEQUITY

Strong brand names simplify the decision process and reduce risk.

Brand names are used to maintain higher awareness of products.

Companys use brand equity to gain leverage when introducing new

products. The brand name is often interpreted as an indicator of quality.

Strong brand equity insures that your products are considered by most

buyers..

Higher brand name equity leads to greater loyalty from customers.

Strong brand equity is the best defence against new products and new

competitors.

Improvements in brand equity lead to higher rates of product trial and

repeat purchasing due to buyers' awareness of your brand, approval of its

image/reputation and trust in its quality.3/14/2013 25Dr.SOUREN SARKAR,SSEC


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Brand Equity Models (1) (1)

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