Brand Equity

Concept
Sources
Four steps of brand building

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 Brand Equity
• It is the willingness for someone to continue to purchase
a particular brand or not.
• The added value to the firm, the trade, or the customer
with which a given brand endows a product.
• Brand equity subsumes brand strength and brand value
( where brand strength = set of associations and
behaviours by customers which permits it to enjoy
advantages,
and brand value = financial outcome of management’s
ability to leverage brand strength via tactical & strategic
actions)

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 Building brand equity
Brand Elements
Marketing Programs involving 4Ps
Leverage of Secondary Associations

Brand Awareness Brand Associations

Depth Strong

- Recall Relevance,Consistency
-Recognition Favourable

Breadth Desirable, Deliverable

-Purchase Unique
-Consumption Point of parity, Point of
difference 3
 Four steps of brand building
1. Brand identification and association with
customers/customer need
2. Establish the totality of brand meaning
3. Proper customer responses to this brand
identification and meaning
4. Convert brand response to create an intense,
active loyalty relationship between customers
and the brand

4
Fundamental questions/branding
ladder
Brand Relationships
What about you and me?

Brand Responses
What about you? What do I
think or feel about you?

Brand Meaning
What are you?

Brand Identity
Who are you? 5
Brand Equity Pyramid

Resonance

Judgements Feelings

Performance Imagery

Salience
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 Brand Equity Pyramid
• Brand Salience
• Awareness aspects of the brand
• Linking the brand through brand name, logo, symbol etc
to certain associations
• The better the customer understands which need the
brand satisfies, the better the salience
• Breadth and depth of awareness
• Eg: Tropicana at basic level, customers should recognize
its logo, packaging - Whenever buying orange juice
Tropicana should come to mind – a set of needs should
be satisfied in the mind
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 Brand Equity Pyramid
• Brand Performance
• Product itself is at the heart of brand equity
• Does the brand satisfy utilitarian, aesthetic, and
economic needs and wants?
• The strongest positioning involves performance
advantages of some kind
• Eg: BMW – Sheering driving pleasure
• Five important factors: primary ingredients and
secondary features, product reliability, service, style and
design, price

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 Brand Equity Pyramid
• Brand Imagery
• More intangible aspects of the brand
• Imagery can be formed directly (from a
consumer’s own experiences) or indirectly
(depiction of same considerations in ads)
• Four categories: User profiles, Purchase and
usage situations, Personality and values, History
and heritage

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 Brand Equity Pyramid
• Brand Judgements
• Customer’s personal opinions and evaluations – a result
of brand performance and imagery
• Four important criteria
– Brand quality
Eg: Taj Hotels stand for location convenience, comfort, appearance,
service, facilities, security, prices
– Brand credibility
Eg: Aashirwaad Aata has to be good because it is an ITC brand
– Brand consideration
Eg: “I’m Loving It”
– Brand superiority
Eg: India’s largest selling diesel car 10
 Brand Equity Pyramid
• Brand Feelings
• Customer’s emotional responses and reactions
• Six important types of brand-building feelings:

Warmth Experiential and

Fun immediate
Excitement

Security
Private and
Social Approval enduring
Self-respect 11
 Brand Equity Pyramid
• Brand Resonance
• The ultimate relationship and level of
identification that the customer has with the
brand
• Eg: High resonance include Harley-Davidson, Levis,
• The depth of the psychological bond
• Resonance can be broken into 4 categories:
• Behavioural loyalty (loyalty value), Attitudinal
attachment, Sense of community, Active
engagement
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Ways of building resonance

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Ways of building resonance

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