How is brand equity built, measured, and managed?

By Sanket Badhe

Three brand equity drivers

1. The initial choices for the brands elements or identifies Making up the brand(brand names, URLs, logos, symbols, characters, slogans)

Microsoft chose the name Bing for its new searchEngine because it felt it unambiguously conveyed searchAnd the “aha” moment of finding what a person looking for.

2. The product and service and all accompanying marketing activities and supporting marketing programs

Virgin Mobile, one of the later entrants in the mobile service space in India, Uses edgy and humorous advertisement that depicts pranks and mischievous acts by youngsters.

3. Other association indirectly transferred to the brand by linking it to some entity (a person,place, or thing)

Airtel, uses A. R. Rahman as a brand endorser in its advertisement.

Choosing Brand element

Brand elements are devices, which can be trademarked, that identify and differentiate the brand.

1) Brand element choice criteria. 2) Developing Brand elements.

Brand element must be

1) Memorable : Lux, LG, Bajaj and Taj.2) Meaningful: Fair & Lovely, Close-up, Mother’s Recipe

Pickle3) Likable: Scorpio, Splender, and Maharaja4) Transferable: Amazon.com (Book to all category)5) Adaptable: Nano (similar meaning across different

geographical market)6) Protectable: it must be legally protectable Xerox,

Fiberglass, and Dalda

1) Brand element choice criteria.

2) Developing Brand Elements.

brand elements can play a number of brand-building roles. If consumer don’t examine much information in making product decision, brand elements Should be easy to recall and inherently descriptive and persuasive.

Symbol of the flame of an earthen Lamp enveloped by two hands Folded in Namaste, symbolizing “Protection and security”

Designing Holistic Marketing Concept

Brands are not built by advertising alone. Customers come to Know a brand through a range of contacts and touch points: Personal observation, word of mouth, interaction and company personnel, online or telephone experiences.

Johnson and Johnson has become a dominant brand by adopting a consistent and well integrated marketing Programme that guides its various marketing activities for different products

Leveraging Secondary Association

The third and final way to build brand equity is, in affect, to“borrow” it. That is, create brand equity by linking the brand To other information in memory that conveys meaning to Consumer

1) Internal Branding2) Brand communities

Secondary Sources of Brand Knowledge

1) Internal Branding1) Choose the right moment: Turning points are ideal opportunities

to capture employees attention and imagination

2) Link internal and external marketing: Internal and external message must match

3) Bring the brand alive for employees: Internal communication should be informative and energizing

BP found most employs were positive about the new brand And thought company was going in right direction

IBM’s e-business campaign not only help to change publicPerception but also employees perception

Miller Brewing has tapped into its brewing heritage to generate pride and passion

2) Brand communities

Measuring Brand Equity

The Brand Value Chain The brand value chain is a structured approachTo assessing the way marketing activities create brand value.It is based on several premises .

Brand audit: is a consumer-focused series of Procedure to assesThe health of the brand equity, and suggest ways to improveAnd leverage its equity.

Brand-tracking studies: collect quantitative data from overTime to provide consistent, baseline information about how brandsAnd marketing programs are performing.

Managing Brand Equity

Based on consumers response to a brand, either positive or negative, short or long term changes should be made in the product for future growth of the brand.

What is brand worth ?

Brand is managed by reinforcement and revitalization also. Brand Reinforcement means expanding the brand by developing more products within the same or more quality level.Brand Revitalization is removing the glitches in the present product and re-launching it.

“Created by Sanket Badhe, IIT Roorkee, during an internship with Prof. Sameer Mathur, IIMLucknow, www.IIMInternship.com ”