Module II- Brand equity

By – Dr. Ruchi Jain

1
 Customer Based Brand Equity (CBBE)

• One of the latest perspectives to define brand equity.

• Concept given by Kevin lane Keller.

• It takes customer’s perspective.

• Assumes brand power = what customer’s has learnt, felt, seen and heard
about a brand as a result of past experience.
• According to this model ,consumer knowledge drives the differences that
manifest themselves in terms of brand equity.
Brand equity works!
 Customer-Based Brand Equity

• – Customer is aware of and familiar with the

brand
• – Customer holds some strong, favorable, and

unique brand associations in memory

• The differential effect of brand knowledge on consumer response to the
marketing of the brand is known as customer based brand equity.
 Sources of Brand Equity

• Brand knowledge is the key of brand equity.

• How to create brand knowledge?

Brand knowledge
= brand equity

Brand awareness Brand image

Brand recognition Brand recall

Sources of Brand Equity
 Sources of brand equity

1. BRAND AWARENESS is the strength of brand node or trace in memory of the customer.
• It measures the ability to identify the brand under different conditions.
1a. Brand recognition- consumer’s ability to confirm prior exposure, when given the brand as
a cue.
1b. Brand recall- consumer’s ability to retrieve the brand from memory, when given product
category, needs fulfilled by that category or usage situation as a cue.
 Implications

• At POP , brand recognition is important.

• Otherwise recall is important.
• For services & online brands- recall is more important.

• Consumers are more comfortable in recognizing as compared to

recalling
 Brand Awareness Advantages

• It influences formation of brand associations

• Learning advantages
– Register the brand in the minds of consumers

• Consideration advantages
– Likelihood that the brand will be a member of the consideration set

• Choice advantages
– Affect choices among brands in the consideration set
 Establishing Brand Awareness

• Increasing the familiarity of the brand through repeated exposure

(for brand recognition)
• Forging strong associations with the appropriate product category
or other relevant purchase or consumption cues (for brand recall)

2.11
 Establishing brand awareness:

• Repeated exposure
• Frequent Advertising
• Creating positive experiences.

• Sponsorship and event marketing etc.

• Celebrity endorsement

• Develop a slogan or jingle or logo or symbol

 2. BRAND IMAGE:

• It is consumer’s perception about a brand, reflected by brand

associations in the memory of consumer.
• Brand associations are the other nodes in memory which leads to
brand node
• marketing programs that link strong, favorable and unique
associations to the brand in memory.
 Oreo brand launches first fashion
collection
• The aim is to drive cookie sales and engagement in European markets,
building on its heritage.
• It was developed with Samantha Faiers from the UK, Anne-Laure Mais
Moreau from France and Yvonne Pferrer from Germany. The trio have a
combined Instagram following of over four million.
• Although the collection won’t actually be on sale, Oreo is giving fans the
chance to win items – as well as a €1,000 shopping spree – as part of a
special competition.
Possible Apple Computer
Associations
innovative

Macintosh Fun

Apple
graphics Educational

User
ipod
friendly
 Brand image/ associations
Strength of brand association
• Personal relevance
• Consistency of presentation

Favorability of brand association

• Desirability-relevance/differential/believable
• Deliverability-potential ability of product to perform.

Uniqueness of brand association

• USP
• Brand elements
 Benefits of Brand Equity

• Greater loyalty from customers

• Higher prices, Larger profit margins

• Additional brand extension opportunities

• Distribution Channel power - greater trade support
• Prevents erosion of market share

• Additional retail shelf space

• Licensing opportunities