Professional Documents
Culture Documents
Understand
The concept of Brands Why and when brands need to be valued. Different methods that may be used to assess the value of particular brands..
Chapter Eleven
Brand Evaluation
Structure
Chapter Eleven
Brand Evaluation
11.1 Introduction
Brand is a name, a term, a sign, a symbol, a design or a combination of any or all of them that marketers use to convey the identity of its goods / services to customers and differentiate its own products / services from those marketed by others. Organizations spend large amounts of money , efforts and time to build a brand. Once established, they receive returns from the brand on a long term basis.
Chapter Eleven
Brand Evaluation
11.2 Brand
Brands convey : 1. Attributes / special features / distinguishing elements e.g. Raymond's suiting are stylish. 2. Benefits - the attributes should transform to benefits e.g. style, fashion and modernity may transform to "emotional benefits", just as high quality will transform to "functional benefits" 3. Values - most brands associate some values e.g. Raymond's the "complete man" has the value proposition viz. long lasting. 4. Culture - Raymond's again projects a culture of family bonding. Raymond's man cares for family.
Chapter Eleven
Brand Evaluation
11.2 Brand
Brand image is a schematic memory of a brand - it contains the target market's interpretation of the product's attributes, benefits, usage situations, users , as well as, the manufacturer's / marketer's characteristics. e.g. HP is a reliable printer.
Chapter Eleven
Brand Evaluation
11.2 Brand
Brand Equity : a set of assets associated with a brand which adds to the value provided by the products / services to its customers - it is in effect the aggregate of the potential customers' beliefs that it will deliver on its promise.. The assets can be brand awareness brand loyalty perceived quality of the brand and brand association. Besides the above , intellectual property viz. patents can also be an asset. Brand Managers create and enhance the assets to build brand equity.
Chapter Eleven B
rand Evaluation
11.2 Brand
Brand awareness : in essence it is the registration of the brand's presence in the mind of the consumers. It may range from mere recognition - to recall - to top of the mind of the consumers. Brand loyalty : while loyalty is an outcome of good quality , we can better define it in terms of customer's behaviour and attitudes. A customer who has found a satisfactory brand will resist the promotional activities of the rival brands. Brand association : consumers associate a brand with certain tangible and intangible attributes., the endorser's standing or visual symbol. Perceived quality of the Brand : is based on the judgements of quality and is not necessarily same as actual quality. It has more to do with customer's feelings and beliefs.
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Brand Evaluation
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P e r s o n a l a o ( r e l e
vance)
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Brand Evaluation
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Brand Evaluation
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and Evaluation
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11.4 Summary
Brand is a name , a term, a sign , a symbol, a design or a combination of any or all of them that marketers use to convey the identity of its goods / services to customers and differentiate its own products / services from those marketed by others. Several methods have been used from time to time to evaluate brands . 1. Historical cost method. 2. Replacement cost methods. 3. "Market Value" method. 4. "Premium Price" method. 5. Royalty relief method. 6. Young and Rubicon brand asset valuator model 7. Economic use method.
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Brand Evaluation And with it our sessions on the subject of Marketing Finance.
Good Luck!
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