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Brand Equity

Brand Equity

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Published by Saptak Das

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Published by: Saptak Das on Aug 26, 2010
Copyright:Attribution Non-commercial

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12/09/2012

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WHAT IS BRAND EQUITY
Accordingto David A.Aker ³Brand Equity isthe value that a brandgenerates to the product.´
The value of a brand, based onthe extent to which it has high brand loyalty, name awareness, perceived quality, strong brandassociations, and other assetssuch as patents, trademarks,and channel relationships.´The term brand equity is usedmainly when we compare two brands, and also when merger and acquisition takes place.
NEWS AND GOSSIPWORLD EXCLUSIVE
THE  
BRAND EQUITY
 
MeasuringMeasuring BBrand Equityrand Equity
Brand Equity
 
Brand EquityCost-BasedPrice BasedConsumer-BasedHistorical CostReplacement CostMarket Value MethodDiscount Cash flowMethodBrand contributionMethodInterbrandMethodPrice PremiumEqualization PriceIndifferent PriceBrand KnowledgeBrand imageBrand knowledge Attribute associationBenefit association Attitude associationLoyalty measureQuality measure
 
C
ost Based Method
C
ost Based Method
Historical Cost-
I
n this we calculate our whole expendituretill date. Suppose Rs. 100 million have been spent so far increating a brand called µX¶ . The value at which the brand can be sold to another organization should be Rs. 100 million.Here we do not mind time value of money and other factor tocreate the bond.
Replacement Cost
-How much would it cost to create a brandwith similar turnover, profitability, distribution, loyalty etc.Replacement cost = Launch cost + Production and administrativecosts incurred over the years + Brand premium acquired over theyears due to brand loyalty, distribution etc.
I
t do not give guarantee that if the cost is same then marketshare, quality and other function will be same.

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