Managing Brand Equity

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Brand equity is a set of brand assets and liabilities linked to a brand
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Elements of Brand Equity: Brand Loyalty Brand Awareness Perceived Quality Brand Associations
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Brand Loyalty
Brand loyalty is a measure of the attachment that a customer has to a brand.
It reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or in product features.

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Brand Loyalty Pyramid
Committed Buyer Likes the Brand - Considers it a Friend Satisfied Buyer With Switching Costs Habitual Buyer - No Reason to Change Switchers / Price Sensitive Indifferent – No Brand Loyalty

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Measuring Brand Loyalty
• Purchase Behavior Patterns • Switching Cost Analysis • Satisfaction Measurement
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Strategic Value of Brand Loyalty
• Reduce marketing cost • Trade (channel distribution) leverage • Attracting new customers

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Enhancing Brand Loyalty
• Treat the customer right • Stay close to the customer • Measure/manage customer satisfaction • Create switching cost • Provide extras

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Brand Awareness is
the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category

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Brand Awareness Hierarchy
Top of Mind Brand Recall Brand Recognition Unaware of Brand

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Value of Brand Awareness
• Anchor to which other associations can be attached • Familiarity and liking • Signal of substance/commitment • Brand to be considered
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How to Achieve Brand Awareness
Be different, memorable Involve a slogan or jingle Symbol exposure Publicity Event sponsorship
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Perceived Quality
The customer's perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives. Perceived quality is a perception by customers.

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What Influences Perceived Quality of Product? Product

• Performance • Features • Conformance with specifications • Reliability • Durability • Serviceability • Fit and finish

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Appearance Reliability Competence Responsiveness Empathy
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What Influences Perceived Quality of Service? Service
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The Value of Perceived Quality
• Reason-to-Buy • Differentiate/Position • A Price Premium • Channel Member Interest • Brand Extensions
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Brand Association
A brand association is anything "linked" in memory to a brand.
Thus, McDonald's could be linked to a character such as Ronald McDonald, a consumer segment such as kids, a feeling such as having fun, a product characteristic such as service, or a symbol such as the Golden Arches.
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Some Types of Associations
• • • • • • Product Attributes Customer Benefits Relative Price Lifestyle/Personality Celebrity/Person Use/Application
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The Value of Brand Associations
• Help Process/Retrieve Information • Differentiate/Position • Reason-to-Buy • Create Positive Attitudes/Feelings • Basis for Extensions visit: www.studyMarketing.org

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Maintaining Associations
• Be consistent over time • Be consistent over elements of the marketing program • Manage disasters in order to minimize their damage
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Criteria for Brand Name Selection
• Be easy to learn and remember • Suggest the product class • Support a symbol or slogan • Suggest desired association without being boring or trivial • Not suggest undesired associations • Be distinctive • Be available and protectable legally
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Source of Reference: David Aaker, Managing Brand Equity : Capitalizing on the Value of A Brand Name, Free Press.

You can obtain this excellent book at this link: http://www.amazon.com/Managing-Brand-Equity-David-Aaker/dp/0029001013/ref=pd_bbs_sr_1?ie=UTF8&

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