BRAND EQUITY

DEFINITION: It is the customer’s subjective assessment

of a branded offering’s worth above and beyond its
objectively perceived value.
AWARENESS

ASSOCIATIONS(IMAGE)

ATTITUDE

ATTACHMENT(LOYALTY)

ACTIVITY(WORD OF MOUTH)
 CUSTOMER EQUITY

DEFINITION: Customer equity is the total

combined customer
lifetime values of all of a company’s customers.

“The present value of the stream of future profits expected over the
customer’s lifetime purchases. The company must subtract from the
expected revenues, the expected cost of attracting, selling and
servicing that customer”
Kotler and Keller

Greater the customer equity (CE), the more future revenue in the
lifetime of its clients.
 MODEL TO MEASURE
CUSTOMER & BRAND
EQUITY
To manage something, you need to be able to measure it.

But how??? ……. No formula!!!!!!!

\Two major implications for how we measure brand equity:

1. Put it in the context of customer equity.

2. It varies by individual.
 ETHICAL CORPORATE
FREE SAMPLES , etc IMAGE ADVERTISING ,etc
BEHAVIOUR

ATTITUDE TOWARDS
BRAND AWARENESS BRAND ETHICS
BRAND

VALUE EQUITY BRAND EQUITY RELATIONSHIP EQUITY

BRAND CHOICE

CUSTOMER LIFE TIME

VALUE

CUSTOMER EQUITY
 NEED FOR CUSTOMER SEGMENT
MANAGERS
Resources of the firm should be controlled by customer segment
managers rather than brand managers.

If brand managers control the resources, they will persist too long
with a brand that has lost its punch in a particular segment.

Brands are only a means to an end and the end is this: to create
and cultivate profitable, long- term relationships with customers.