Creating Brand Equity

Session 9

Brand Equity
What is a Brand:

Name, Term, Sign, Symbol or design or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors
Some symbols and terms in our daily lives: Surf Excel Hai Na Nike Lets Do it Shell Petrol Stations Pepsi Duniya Hai Dil walon Ki

Brand Equity

Brand Equity
How does a Brand help consumer: Allows consumer to assign performance responsibility to a manufacturer Helps in identifying What they need Helps consumer in simplifying decision making

How does a Brand help Manufacturer: Simplify product handling or tracking (Accounting records) Brand signal quality and helps in customer retention Brand Loyalty help the manufacturer in commanding a premium Helps in securing a competitive advantage

Brand Equity
Brand Equity:

Added value endowed on products and services

Reflected in the way consumer: Think Feel Act Reflected in the way brand: Commands price Gets market share Brings profits

Customer-Based Brand Equity

Arises from differences in consumer response If no difference because of brand then product is a commodity Competition to be based on price Differences exist due to consumer knowledge of a

brand
Knowledge consists of all associations from brand (thoughts,

feelings, images, experiences and beliefs)

Differential response is reflected in perceptions,

preferences and behavior related to all aspects of marketing of a brand

Knowledge consists of all associations from brand (thoughts,

feelings, images, experiences and beliefs)

Brand Equity Models

Investment in marketing is an investment in brand

knowledge of consumer Brand Promise the marketers vision of what the brand must be and do for consumers Brand Asset Valuator - Five Key Components of Brand Equity:
Differentiation Energy Relevance

Esteem
Knowledge

Building Brand Equity

Three steps of Brand Equity Drivers: Initial choices for brand elements and identities making up the brand (names, logos, symbols, characters, slogans, packages etc.) Product and Service and all accompanying marketing activities and supporting program Other associations indirectly transferred to the brand by linking it to some other entity (person, place or thing) Brand Elements those trademarkable devices that

differenciates a brand, which should be:

Memorable Meaningful

Likable
Transferable Adaptable Protectable

Devising a Brand Strategy

Choices available to firms: Develop new brand elements Apply existing brand elements Combination of new and existing brand elements Brand Extension Use of existing brand to introduce a

new brand (Parent Brand or Family Brand)

Line Extension Category Extension

Brand Line all products under a particular brand Brand Mix set of all brand lines

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