First of all we’ll discuss about topic and the definaition of the topic so the reader can easily

understand the meaning of the topic What is advertisement ? Advertising is a form of communication used to influence individuals to purchase products or services or support political candidates or ideas. Frequently it communicates a message that includes the name of the product or service and how that product or service could potentially benefit the consumer. Advertising often attempts to persuade potential customers to purchase or to consume a particular brand of product or service. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries(1) The American marketing association defines advertising as “any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor”. Advertising doesn’t change the physical properties of the product but than also it is the most compulsory expense for creating demand for the product.

What is branding?? The branding started in sweden in the middle age between (475-1492). . Entomology tells us that the word“brand” is a degenerate of the old Norse word “brandr”. The Vikings may have spread the word “brandr” in England, where it was finally integrated into daily language. This is how the word band came into being. In trade law, the word trademark is used as an alternative of the word “brand”. Patents and Trademarks were legally known for the first time with the establishment of the Venetian Patent law in 1474.(1) The meaning of a brand was later registered in the dictionary in 1552 as “identifying mark made by a hot iron” 5. It was in between the mid 16th

century and the beginning of the 19th that the word “brand” began to be related to trade, emotions and trust. A trademark was a symbol that would differentiate the goods between manufacturers. Start of brand advertising ? One of the first advertising agencies was founded in New York in 1864 as Carlton and Smith, an advertising agent buying and selling space in the popular religious journals of the nineteenth century, the firm was purchased and renamed by James Walter Thompson in 1878(3). It is said that as early as 1874 William Hesketh Lever, one of the founders of Unilever, began advertising and selling a soap called Lever’s Pure Honey in Europe(4). Similarly in the US five years later (1879), Harley Procter, one of the founders of Procter and Gamble (P&G), branded a white soap with the name “ivory”. Ivory’s ad from 1881 is one of the earliest copy ads identified today. This ad from P&G highlighted the attributes and functional benefits of the product. Stating that the “ivory soap” “floated” and that it was “99 44/100% pure,” a dual claim which today is one of the oldest and most famous ad slogans ever(4) What is brand equity? It is not clear who invented the expression of brand equity, but few uses of it have been traced before the mid-eighties (Ambler & Styles 1995)(5).but in early 80s Kevin Lane Keller start reading the memory factors and their importance in advertisment and its relation with consumer brand evaluations in the moment of purchase, “Memory Factors in Advertising: the effect of advertising Retrieval Cues on Brand Evaluations, 1987”. In the early 90s David A. Aaker and Keller published articles such as “Consumer Evaluations ofBrand Extensions” 1990; and Managing Brand Equity: The Impact of Multiple Extensions” 1990”. These two articles were followed by the now classic book Managing Brand Equity by David A. Aaker 1991. In this book Aaker presented the idea

htm 2.duke. © 2001 Douglas Harper namely: Brand Loyalty. The model of brand equity was presented by Aaker following the need to manage brands strategically by creating. 54 5.On which area they should work more and also this will explain them how they can make brand awareness in order to In order to build strong brand equity effectively. Reference: 1. http://www.of brand equity accompanied by diffirent historical examples and cases. Brand Awareness.this study will help managers how they can make their brands more popular and get more brand equity. SIGNIFICANCE OF THE STUDY This study will help marketers for developing the better brand equity in the minds of customers. Paul Feldwick.and secondly to find out the relationship between advertisement and brand equity how a good advertisement can create brand awareness.html 4. Perceived Quality. . What is brand equity anyway. Online Etymology Dictionary. On Brand. managers must invest in the advertising sector to get more and more profits. This model would finally come to clarify for managers exactly how brand equity contributes to value. Wally Ollins (2003) pg.brand perceived quality and brand loyalty and association. Market Research Society Conference 1996 PURPOSE STATEMENT The primary purpose of this study is to determine the impact of advertisement on brand equity.jpo. Wally Olins. Brand Associations and other proprietary brand assets. developing and exploiting each of the five assets that would create value. and how do you measure it? Best Paper Award.

H1c: Advertising is positively related to brand loyalty . Successful brand extensions contribute to higher brand equity of the original brand (Dacin and Smith. Moreexactly. leading tocustomer loyalty to a specific brand (Pitta and Katsanis. Generally. brand extensions have lower advertising costs and higher sales (Smith and Park. Whencompared to new brand names. 1990). One of the benefits provided by high brand equity is the possibility of brand extension to other product categories. H1b: Advertising is positively related to perceived quality. 1992) RESEARCH QUESTIONS OR RESEARCH HYPOTHESES H1: Advertising affects brand equity H1a: Advertising is positively related to brand awareness.The importance of brand equity consists in many benefits for companies that own brands. 1992). brand equity increases the probability of brand selection. 1994. Keller and Aaker. 1995). brand extension is defined as the use of an existing brand name for entry into a new product category (Aaker and Keller. Brand equity has positive relationship with brand loyalty.

. 1995). Brand Managers realize that similarity exists in most categories as a result of ``copy cat’’ or look-alike advertising and the creation of me-too brands (Aaker. Price competition through the over use of short-term price promotions has led to a reduction in the . It means brand equity is the asset of the company.Literature review Brand equity has been described as the added value endowed by the brand to The product (Farquhar.b 1991. 1989). Cobb-Walgren et al.

Srinivasan. Brand equity has been identified as a valuable source of competitive advantage for many organizations (Aaker. and other subjective experiences related to the brand (i.g. Furthermore. Keller conceptualizes brand awareness as “the strength of the brand trace in memory that is reflected by the consumer’s ability to identify the brand under different conditions” and defines brand image as “perceptions about a brand as reflected by the brand associations held in consumer memory”. 1993. Cobb-Walgren et al. a measure of the overall value of a brand (Keller. brand attitude. Under this perspective.g. 1993). Keller. A review of the literature on brand equity shows that at the Conceptual level there is extensive agreement as to what is meant by brand and brand equity. 1979. design.e.1998). Kamakura and Russell. This has led retailers and Manufacturers to examine ways to enhance loyalty or brand equity toward their brands. 1995). 1993). Keller (1) proposes brand knowledge as central to the definition of brand equity and contends that high levels of brand knowledge increase the probability of brand choice. The customer-based brand equity is a set of brandrelated associations held by the consumer in memory (e. 1993. A brand is a name.. Most authors provide definitions of brand equity that are generally similar to Farquhar’s (1989) definition of equity as the value added by the brand to the product (e. 1991... is a key concept in brand management. Keller . 1991. and (2) defines brand knowledge in terms of brand awareness and image. Keller.) In addition. Aaker.profitability of brands (Aaker. 1991. . brand image. 1995). Simon and Sullivan. 1989. Cobb-Walgren et al. or mark that enhances the value of a particular product or service (Farquhar. Keller (1993) conceptualizes brand equity as “the differential effect of brand knowledge on consumer response to the marketing of the brand”. symbol.. brand equity is regarded as being largely attitudinal in nature. Brand equity. Bharadwaj. composed of beliefs. 1993. 1998). Varadarajan and Fahy. etc. affect.

and the client value from brand equity is the base to create manufacturer value. Aaker believed that the value of brand equity came from five brand equity assets(brand loyalty. Brand awareness can provide the familiarity to a brand and the signal of substantiality and promise if the customer knows the brand. Aaker. the study can find that brand equity can bring value for both client and manufacturer. brand awareness. These are labeled as global brand attitude. and the effect of competitive manufacturer’s marketing efforts to attract the loyal customer of other brand is always unsatisfactory. such as brand loyalty. while it will influence the consideration of customer to brand and further influence the selection of customer on brand when the brand is memorized. 1991. brand knowledge. . brand awareness. especially when the customer has not been stimulated by inducement or can’t make detailed analysis. brand loyalty may be influenced by other key dimensions (brand awareness. The brand loyalty based on client can defend the attack of competitor’s marketing. From the viewpoint of Aaker. Keller. 1991). brand associations and other proprietary brand assets). in which perceived quality and brand associations were two most important assets. perceived quality. 2004).existing research on brand equity is used to identify four cognitive “components” of customer-based brand equity. in addition to brand associations (e. perceived quality and brand associations) of brand equity. The perceived quality can influence the purchase decision and brand loyalty directly. In five assets of brand equity. Brand association can assist customer to deal with or memorize information and become the base of product difference and product extension. and brand heuristic (Girish and Clayton.g. perceived quality.. Others have tried to further extend brand equity by including constructs. which add value to or subtract value from a product in its relationship with customers (Aaker. strength of preference. which will provide a purchase reason for customer and arise positive feeling. All these brand equity assets could bring value for the enterprise and customer. 1993) Brand equity is defined as a set of assets and liabilities linked to the brand.

and brand recognition even leads to positive assumptions about the quality of the product (D. beliefs. Brand awareness This is an important foundation to make readers more receptive to other brand building messages. brand awareness and brand associations as the measure variables of brand equity based on the achievements of above scholars (e. brand loyalty. 2000. A. other proprietary brand assets (patent. another brand equity component. 1999). 2003). 11). success. taste. p.) are harder to measure the perspective of customer. A. 2006). In this case. Miles Homer. Aaker & Joachimsthaler.. 1988. quality and excitement that brand visibility brings with it (Joachimsthaler & Aaker. Consumers also tend to give more attention. as cited in Hoeffler & Keller. comprehension and retention to familiar brands (Tellis. 1993). Aaker. and liking (D. this make perceived quality. awareness and familiarity of a “product” affect the consumer’s perceptions. Universities are also undoubtedly keen to convey the leadership. In five assets. 1996a.therefore brand loyalty can be regarded as the primary base of brand equity and independent from other dimensions. trademark and distributors etc. As previously noted. Keller. 1991. Recognition and awareness often reflect familiarity .g. Aaker.

Recognition alone can result in liking and more positive feelings about a brand.gained from past exposure. these results provide an indication as to which universities enjoy the best top of mind awareness among respondents Perceived Quality: Perceived quality would be an important brand asset for universities for two reasons—it is often the major if not principal strategic thrust of its business. sometimes called the ‘halo effect’. respondents filled in their own responses. If there was a focus group study of RP readers at some point in the future. this group could offer interesting and valuable information on why the magazine is not generating this awareness and how it could be accomplished. and it is . This would provide insight into whether this lack of brand awareness creation is based on a URM’s non-effectiveness overall or due to the content and style of this particular URM. without being offered any named choices. Therefore. When asked to name three of Canada’s top five research universities. This group would have been a great source of information if there had been a method for probing or direct follow up. One point of concern for uOttawa should be those readers who were unsure or disagreed that RP sparked their interest in uOttawa research (total of 86).

Most importantly. Naturally. Brand loyalty in a university context manifests itself in a number of ways: current undergraduate students enroll in graduate studies at the same university. 1996a). Such loyalty among existing “customers” represents a substantial barrier to competitors and decreases the vulnerability of a brand since consumers’ favourable attitude towards a brand leads them to buy or stay with that brand (Rubinson & Pfeiffer. as cited in Tom Duncan & Moriarty. In fact. 2005). 1994. 1998). Aaker. it differentiates and positions the brand compared to competitors and Brand loyalty: Brand loyalty is at the heart of any brand’s value according to Aaker and Joachimsthaler (2000). the quality of teaching and research in universities is one of the topics of interest to current and potential students. Aaker (1996b) asserts that the value of other measures such as perceived quality and associations often depends on their ability to influence loyalty. their parents.linked to and often drives other aspects of how its brand is perceived (D. A. A brand with a small but intensely loyal customer base can have significant brand equity since loyal customers are more likely to pay a premium. refer others to the brand and generally spend more money (Reichheld. or . faculty as well as the media.

1994. The work shows the favorable relationship between marketing communications spending and the firm’s investment in the brand. effective communication enables the formations of brand awareness and a positive brand image. Aaker and Jacobson. The relationship between perceived quality and spending on marketing communications was justified by different studies (Milgrom and Roberts. Relationship between Advertising and Brand Equity Advertising expenditure. but also supports the purchase decision . Perceived advertising spending has positive effects. which involves a higher perception of quality. 1989). The relationship between the investment in marketing communications and quality affects not only the perceived brand quality. Haulman and Moody. 1983). should be considered when determining the effects of marketing communications on consumers.alumni. That is. the University of Ottawa introduced a Homecoming Week to reinvigorate and strengthen the loyalty of alumni to the institution. but also on each of the elements it is made up of: loyalty. employees and faculty enroll their children at the university and donate money to the institution. as the main marketing communications tool in the consumer market. awareness. Ruble and Donthu. In 2006. Archibald. Keller (2003) notes that the firm’s marketing communications contribute to brand equity. 1989. 1995). When consumers perceive high spending on advertising. this contributes to their perception of the level of confidence that marketing managers have in the product (Kirmani and Wright. perceived quality and brand associations (Cobb-Walgren. not only on brand equity as a whole. 1986. 2005). Kirmani and Wright. and the perceptions that the messages are provoking among different target individuals (Angel and Manuel.

pp. Aaker. Holbrook and Stephens (1988) also proved that “exposure effect” was a key factor to alter the preference and attitude in the later study. (1983) pointed out the relationship between the investment in marketing communications and quality affects not only the perceived brand quality. the recipient of the advertising considers the perceived advertising spending on the brand as reaffirming the purchase decision. D. Aaker. Kim and Zhou (1996) also validated the influence of “exposure effect” on “brand knowledge”. 69. The Free Press. 74–87. (1994) ‘The financial information content of perceived quality’ Journal of Marketing Research. A. and Jacobson.e. . A. The masses will have more positive attitude to the marketing objective if it is exposed regularly. Zajonc and Markus (1982) pointed out that “exposure effect” mean the effect when some marketing objective was exposed repeatedly. (1995) ‘Estatura de la marca: Medir el valor por productos y mercados’. From the study of former scholars. 191–201. D. “brand attitude”. A. Harvard-Deusto Business Review. as shown by Archibald et al. increasing the product value. XXXI. we can find that scale variables of brand equity such as “brand awareness” and “brand attitude” can use “exposure effect” to increase the evaluation of customer to the brand. New York. Anand. R. No. Hence advertising expenditures are likely to be positively related to brand equity . (1991) ‘Managing Brand Equity. (1983) — i. M. References Aaker. R. NY. but also supports the purchase decision by increasing the product value. Vol. D. Capitalizing on the Value of Brand Name’. pp. and A´ lvarez del Blanco. “brand familiarity” and purchase willing and confidence. Archibald et al. Laroche.

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