Brand Equity: An Introduction

Tell me, I will forget.

Show me, I may remember.
Involve me and I will understand...:)

Definition
Brand Equity is a set of assets (and
liabilities) linked to a brands name and
symbol that adds to (or substracts from)
the value provided by a product or service
to a firm and/or that firms customers.

Categories of Assets

Brand name awareness

Brand loyalty
Perceived Quality
Brand Associations
Other Proprietary Brand Assets (e.g., channel
relationships, patents,)

Brand Equity Increases Value

Brand Loyalty

Brand Awareness

Brand
Equity

Value to Customer

Perceived Quality
Value to Firm

Brand Associations
Other Brand Assets

Brand Name Awareness

Anchor to which other associations can be

attached
Familiarity-liking
Signal of substance/commitment
Brands to be considered
Examples:

Nolans: Rat
Lenovo: grandma

Brand Loyalty

Reduced marketing costs

Trade leverage
Attracting new customers

Create awareness
Reassurance

Time to respond to competitive threats

Examples:

Happy to help
Johnson & Johnson

Perceived Quality

Reason-to-buy
Differentiate/Position
Price
Channel member interest
Extensions
Examples:

Axion
Subhiksha
Camlin

Brand Associations

Help process/retrieve information

Reason-to-buy
Create positive attitude/feelings
Extensions Axe hair gel
Examples:

Adidas
Surf

Brand Equity and Brand Value

Brand Equity provides value to customers:

Interpretation/processing of information
Confidence in the purchase decision
Use satisfaction

Brand Equity and Brand Value

Brand Equity provides value to firm:

Efficiency and effectiveness of marketing

programs
Brand loyalty
Prices/margins
Brand extensions
Trade leverage
Competitive advantage

Brand Building Inhibitors

Pressure to compete on price

Proliferation of competitors
Fragmenting markets and media
Complex brand strategies and
relationships
Bias toward changing strategies
Bias against innovation
Pressure to invest elsewhere
Short-term pressures

Benefits of
Customer-Based Brand Equity

Enjoy greater brand loyalty, usage, and affinity

Command larger price premiums
Receive greater trade cooperation & support
Increase marketing communication effectiveness
Yield licensing opportunities
Support brand extensions.

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Customer-Based Brand Equity

as a Bridge

Customer-based brand equity represents

the added value endowed to a product
as a result of past investments in the
marketing of a brand.
Customer-based brand equity provides
direction and focus to future marketing
activities
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Brand Equity and Brand Identity

Brand
Identity

Brand
Associations

Brand
Equity