A DIFFERENTIAL EFFECT IN THE MINDS OF

CUSTOMER
One of the most treasured intangible assets of a firm is its Brand Equity, which defines how the
customers feel, think and act with respect to the brand, its product, its prices, and the profitability
it earns. We can also call it as the Undisputable Evidence of Distinction of a brand. A brand has
positive brand equity when customers react favorably to a product when the brand is identified
than when it is not identified. These reactions are reflected in customers` perceptions,
preferences and recall behavior related to all aspects of the marketing of a brand.
Marketers build brand equity by creating the relevant and right brand knowledge with right
customers, whether marketer initiated or by organic word of mouth. We will try to understand
the drivers of Brand Equity in three categories:

1. The initial choices for the brand elements making up the brand like logos, symbols,
characters, spokespeople, jingles, slogans, packages etc. – . Brand elements are
trademarked to identify and differentiate the brand. For example when customers hear about
‘Naturals’ as a brand name they expect its products to be healthful and organic. Microsoft
chose the name Bing for its new search engine because it felt that Bing conveyed the word
‘search’ and the ‘aha’ moment of finding what a customer is looking for. It was also short,
memorable, appealing and effective multi culturally.

2. Product and service and all other accompanying and supporting marketing programs- The
marketing programs should be congruent and consistent with the offering of the company.
Coca-Cola brand positions Thumbs Up with the tag line ‘Taste the thunder’ which appeals to
the customers who have an adventurous lifestyle and are youth-oriented. While its other
product Coca-Cola revolves around the tag line ‘Taste the happiness’, which is more family
oriented and focuses on continuous happiness. So there should be a consistency in the these
questions asked by any brand:

What is the brand known for?

What should the brand be known for?
Does the brand know its customer correctly?
Do the employers of the brand know their customers correctly?

3. Brand Promise, Brand Recall and Preference Index- A brand promise is the marketer`s vision
of what a brand must be and do for consumers. McDonalds promises to deliver quality,
 speedy service, cleanliness and value for money to its customers. There is a predictability and
consistency in these aspects which has built its brand promise over time. To create a positive
Brand Recall marketers are creating brand contacts through new avenues such as online
clubs, trade shows, consumer communities, event marketing, sponsorship, public relations,
press releases and social cause marketing. Recently Hyundai launched a new car with the
name ‘Santro’ aiming to leverage the brand equity Santro had built earlier. Their aim was to
entice loyal customers of Hyundai through ‘Emotional Recall’ to target the customers who
were kids when the old Santro was launched and have grown into the earners of family now.

There`s a saying, “People don’t remember who you are, but they remember how you made them
feel.”
So, the challenge for the marketers today is to ensure that customers have the right type of
experience to create the desired thoughts, feelings and brand knowledge in a long run to create
trustworthiness and high brand preference in the minds of customers.

Authored by:
Nishant Gaurav