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BRAND EQUITY

Introduction
Building brands is an important aspect of marketing for
the long-term sustenance of a firm.
A brand name not only imparts recognition to a
product but gives it an identity. In the same product
class, products of different firms can have different
meanings for consumers.
The question is how do consumers associate these
different meanings to different brands?
This is because a brand name adds value to a product
beyond the brand elements and the value added
depends on customer perception
Brand Equity defined
Brand equity can be thought of as the
additional cash flow achieved by
associating a brand with the underlying
product or service
(Biel 1992).
Brand Equity defined

Brand equity is a set of brand assets


and liabilities linked to a brand, its
name, and symbol, that adds value to or
subtracts from the value provided by a
product or service to a firm and/or to
that firms customers
(Aaker 1991).
Brand Equity defined

The differential effect the brand


knowledge has on consumer response
to marketing of that brand
Keller, 2004
Need for Building Brand
Equity
Brand equity has a positive influence on market power.
It positively impacts consumers willingness to pay price
premiums.
It leads to higher efficiency and effectiveness of their
marketing programs.
It positively impacts the companys market share.
It results in improved future profits and long-term cash-
flow.
It can build brand loyalty, which in turn reduces
marketing costs.
Need for Building Brand
Equity
It can deliver emotional, safety, prestige, or other
benefits that are important to consumers.
It reduces the anticipated risk, enhances anticipated
confidence in the brand purchase decision, and
increases satisfaction with the brand.
It leads to sustainable competitive advantage.
It ultimately leads to marketing success for the
brand.
Strong brand equity can help in achieving success for
new products launched as brand extensions.
Brand Resonance
Pyramid Brand relationship
Step 4
and brand loyalty

Step 3 Developing Brand response


Judgments
Feelings

Step 2 Forming Brand meaning


Performance
Image

Step 1
Creating Brand Identity
Brand Equity in a Business
to Business Context
Brand identity Manufacturers brand salience
Brand meaning Includes performance and
reputation
Brand response includes judgements and sales
force relationships
Brand relationships partnership solutions
Sources of Brand
Equity Joint Perceived
Branding Advertising
programmes
spending Corporate
Brand Societal
knowledge Marketing

Brand
Brand elements
associations

Building
Brand Brand
Perceived Equity community
quality

Country-of-
origin
Brand
loyalty
Company
image
Endorsements
Events, third Distribution
party channels
Levels of brand
awareness Level 6: Opinion
about Brand
Level 5: Knowledge of
the Brand

Level 4: Brand
supremacy

Level 3: Top-of-the
mind recall

Level 2: Brand
recall

Level 1: Brand
recognition