Brand equity = brand assets + brand liabilities

Assets: +, something you have, something good,

something positive (strengths)
Liabilities: -, something you don’t have,
something bad, something negative (weaknesses)

+ > -: brand equity

- > +: no brand equity

1.First, invest in making the product/service.

Quality comes first. Customers buy functions.
Ex: Buying a phone to make the phone call,
not to take photo. If they want to take photo,
they will buy the camera. However good the
camera on the iphone is, the calling function
must be first.
2. Second, invest in making the name.
Customers not only buy the functions but they
also buy the style, status that the
products/service offer. This is especially
sensitive to Asian culture.
3.Brand equity consists of tangible and
intangible aspects. Tangible aspects includes
the names, logo, slogan, color, etc. Intangible
aspects include perception, experience, etc.
- People they will see the tangible aspects
before they have further experience or
interaction with the product/service. Without
specific aspects, people cannot link/associate
to the products. (body of the brand). You
invest in making the brand identity porfolio.
- Intangible aspects is the underwater part of the
iceberg. People do not see it but they feel it,
percieve it, experience it and these aspects
keep the brand alive in their heart and mind.
(soul of the brand). You have to invest in
communicating, marketing the brand. It takes
years.
4. Quality always comes first.
- If you produce 1 mil products, they are
consistent in the quality. There is no defective
products.
- If you produce the products over 10 years or
longer, they are consistent in the quality or the
quality is improved.
- Quality control/assurance comes before brand
management. If the quality is not good but the
 promotion is too much, it will be a bad
reflection on the brand.
5. Most important intangible assets
- Modern, technological brand: patents
- Traditional brand: secrets (kept in the family
and only passed on to certain persons in the
line)
Eg: Pho Thin. Their most important intangible
asset is the secret recipe. If you have this recipe,
you can establish any pho brand and you will be
successful. If you don’t have this secret recipe,
you have to buy their franchise to be under their
name.
6. Brand equity reflects personal
values/qualifications of the brand owners or
the brand managers. If the brand
owners/managers have good quality, it will
reflect into the brand equity. This is why a lot
of famous brands is closely related/associated
to a human, dead or alive.