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
of brand equity accompanied by diffirent historical examples and cases. The
model of brand equity was presented by Aaker following the need to manage
brands strategically by creating, developing and exploiting each of the five
assets that would create value; namely: Brand Loyalty, Brand Awareness,
Perceived Quality, Brand Associations and other proprietary brand assets.
This model would finally come to clarify for managers exactly how brand
equity contributes to value.
Reference:
1. http://www.jpo.go.jp/seido_e/rekishi_e/nenpyoe.htm
2. Online Etymology Dictionary, © 2001 Douglas Harper
3. http://library.duke.edu/specialcollections/hartman/guides/jwt-
history.html
4. Wally Olins, On Brand, Wally Ollins (2003) pg., 54
5. Paul Feldwick, What is brand equity anyway, and how do you measure
it? Best Paper Award, Market Research Society Conference 1996

PURPOSE STATEMENT
The primary purpose of this study is to determine the impact of
advertisement on brand equity.and secondly to find out the relationship
between advertisement and brand equity how a good advertisement can
create brand awareness,brand perceived quality and brand loyalty and
association.

SIGNIFICANCE OF THE STUDY

This study will help marketers for developing the better brand equity in the
minds of customers.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, managers must invest in the
advertising sector to get more and more profits.this study will help managers
how they can make their brands more popular and get more brand equity.
The importance of brand equity consists in many benefits for companies that
own brands. Brand equity has positive relationship with brand loyalty.
Moreexactly, brand equity increases the probability of brand selection,
leading tocustomer loyalty to a specific brand (Pitta and Katsanis, 1995). One
of the benefits provided by high brand equity is the possibility of brand
extension to other product categories. Generally, brand extension is defined
as the use of an existing brand name for entry into a new product category
(Aaker and Keller, 1990). Whencompared to new brand names, brand
extensions have lower advertising costs and higher sales (Smith and Park,
1992). Successful brand extensions contribute to higher brand equity of the
original brand (Dacin and Smith, 1994; Keller and Aaker, 1992)

RESEARCH QUESTIONS OR RESEARCH HYPOTHESES

H1: Advertising affects brand equity

H1a: Advertising is positively related to brand awareness.

H1b: Advertising is positively related to perceived quality.

H1c: Advertising is positively related to brand loyalty

Literature review

Brand equity has been described as the added value endowed

by the brand to
The product (Farquhar, 1989). It means brand equity is the asset of the
company. 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,b 1991; Cobb-Walgren et al., 1995). Price competition through the
over use of short-term price promotions has led to a reduction in the
profitability of brands (Aaker, 1991; Cobb-Walgren et al., 1995). This has led
retailers and
Manufacturers to examine ways to enhance loyalty or brand equity toward
their brands. A brand is a name, symbol, design, or mark that enhances the
value of a particular product or service (Farquhar, 1989; Cobb-Walgren et al.,
1995). 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. 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.g. Srinivasan, 1979; Aaker, 1991; Kamakura
and Russell, 1993; Keller, 1993; Simon and Sullivan, 1993).

Brand equity, a measure of the overall value of a brand (Keller, 1998), is a

key concept in brand management. Brand equity has been identified as a
valuable source of competitive advantage for many organizations (Aaker,
1991; Bharadwaj, Varadarajan and Fahy, 1993; Keller ,1998). Keller (1993)
conceptualizes brand equity as “the differential effect of brand knowledge on
consumer response to the marketing of the brand”. Furthermore, 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, and (2) defines brand knowledge in terms of brand awareness
and image. 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”. The customer-based brand equity is a set of brand-
related associations held by the consumer in memory (e.g., Keller, 1993).
Under this perspective, brand equity is regarded as being largely attitudinal
in nature, composed of beliefs, affect, and other subjective experiences
related to the brand (i.e., brand attitude, brand image, etc.) In addition,
existing research on brand equity is used to identify four cognitive
“components” of customer-based brand equity. These are labeled as global
brand attitude, strength of preference, brand knowledge, and brand heuristic
(Girish and Clayton, 2004). Others have tried to further extend brand equity
by including constructs, such as brand loyalty, brand awareness, perceived
quality, in addition to brand associations (e.g., Aaker, 1991; Keller, 1993)
Brand equity is defined as a set of assets and liabilities linked to the brand,
which add value to or subtract value from a product in its relationship with
customers (Aaker, 1991). Aaker believed that the value of brand equity came
from five brand equity assets(brand loyalty, brand awareness,
perceived quality, brand associations and other proprietary brand assets), in
which perceived quality and brand associations were two most important
assets. All these brand equity assets could bring value for the enterprise and
customer. The brand loyalty based on client can defend the attack of
competitor’s marketing, and the effect of competitive manufacturer’s
marketing efforts to attract the loyal customer of other brand is always
unsatisfactory. Brand awareness can provide the familiarity to a brand and
the signal of substantiality and promise if the customer knows the brand;
while it will influence the consideration of customer to brand and further
influence the selection of customer on brand when the brand is memorized.
The perceived quality can influence the purchase decision and brand loyalty
directly, especially when the customer has not been stimulated by
inducement or can’t make detailed analysis. Brand association can assist
customer to deal with or memorize information and become the base of
product difference and product extension, which will provide a purchase
reason for customer and arise positive feeling.
From the viewpoint of Aaker, the study can find that brand equity can bring
value for both client and manufacturer, and the client value from brand
equity is the base to create manufacturer value. In five assets of brand
equity, brand loyalty may be influenced by other key dimensions (brand
awareness, perceived quality and brand associations) of brand equity;
therefore brand loyalty can be regarded as the primary base of brand equity
and independent from other dimensions.
In five assets, other proprietary brand assets (patent, trademark and
distributors etc.) are harder to measure the perspective of customer. In this
case, this make perceived quality, brand loyalty, brand awareness and brand
associations as the measure variables of brand equity based on the
achievements of above scholars (e.g., Aaker, 1991; Keller, 1993).

Brand awareness

This is an important
foundation to make readers more receptive to other brand building
messages. As
previously noted, awareness and familiarity of a “product” affect the
consumer’s
perceptions, beliefs, taste, and liking (D. A. Aaker & Joachimsthaler, 2000;
Miles Homer,
2006); and brand recognition even leads to positive assumptions about the
quality of the product (D. A. Aaker, 1996a, p. 11), another brand equity
component. Universities are
also undoubtedly keen to convey the leadership, success, quality and
excitement that
brand visibility brings with it (Joachimsthaler & Aaker, 1999). Consumers also
tend to
give more attention, comprehension and retention to familiar brands (Tellis,
1988, as
cited in Hoeffler & Keller, 2003). Recognition and awareness often reflect
familiarity
gained from past exposure. Recognition alone can result in liking and more
positive
feelings about a brand, sometimes called the ‘halo effect’. 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). This group would have been a
great source of
information if there had been a method for probing or direct follow up. 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. 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. When asked to name
three of
Canada’s top five research universities, respondents filled in their own
responses, without
being offered any named choices. Therefore, 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,
and it is
linked to and often drives other aspects of how its brand is perceived (D. A.
Aaker,
1996a). Naturally, the quality of teaching and research in universities is one
of the topics
of interest to current and potential students, their parents, faculty as well as
the media.
Most importantly, 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). 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, 1994; as
cited in Tom
Duncan & Moriarty, 1998). In fact, Aaker (1996b) asserts that the value of
other
measures such as perceived quality and associations often depends on their
ability to
influence loyalty. 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, 2005). Brand loyalty in a university context manifests itself in a
number of
ways: current undergraduate students enroll in graduate studies at the same
university; or
alumni, employees and faculty enroll their children at the university and
donate money to
the institution. In 2006, the University of Ottawa introduced a Homecoming
Week to
reinvigorate and strengthen the loyalty of alumni to the institution.

Relationship between Advertising and Brand Equity

Advertising expenditure, as the main marketing communications tool in the
consumer market, should be considered when determining the effects of
marketing communications on consumers, and the perceptions that the
messages are provoking among different target individuals (Angel and
Manuel, 2005). Keller (2003) notes that the firm’s marketing communications
contribute to brand equity. That is, effective communication enables the
formations of brand awareness and a positive brand image. 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, 1989). Perceived advertising spending has positive
effects, not only on brand equity as a whole, but also on each of the
elements it is made up of: loyalty, awareness, perceived quality and brand
associations (Cobb-Walgren, Ruble and Donthu, 1995).
The relationship between perceived quality and spending on marketing
communications was justified by different studies (Milgrom and Roberts,
1986; Kirmani and Wright, 1989; Aaker and Jacobson, 1994; Archibald,
Haulman and Moody, 1983). The work shows the favorable relationship
between marketing communications spending and the firm’s investment in
the brand, which involves a higher perception of quality. The relationship
between the investment in marketing communications and quality affects
not only the perceived brand quality, but also supports the purchase decision
by increasing the product value, as shown by Archibald et al. (1983) — i.e.
the recipient of the advertising considers the perceived advertising spending
on the brand as reaffirming the purchase decision.
From the study of former scholars, 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. Zajonc and
Markus (1982) pointed out that “exposure effect” mean the effect when
some marketing objective was exposed repeatedly. The masses will have
more positive attitude to the marketing objective if it is exposed regularly.
Anand, Holbrook and Stephens (1988) also proved that “exposure effect”
was a key factor to alter the preference and attitude in the later study.
Laroche, Kim and Zhou (1996) also validated the influence of “exposure
effect” on “brand knowledge”, “brand attitude”, “brand familiarity” and
purchase willing and confidence. Archibald et al. (1983) pointed out the
relationship between the investment in marketing communications and
quality affects not only the perceived brand quality, but also supports the
purchase decision by increasing the product value. Hence advertising
expenditures are likely to be positively related to brand equity

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