Brand Equity

Brand equity has just as much effect on stock price as do earnings.

Brand
A brand is a name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.
:-American Marketing Association

A product is something that is made in a factory; brand is something that is bought by a customer. product can be copied by a competitor, a brand unique. A product can be quickly outdated; successful brand is timeless.

a A is a

A brand is something that resides in the minds of consumer.

A Brand Is.

Name

Identifies product/service of seller and differentiates from competitors

Design

The Role Of Brand

Consumers
Identification of the source of product Assignment of responsibility to product maker Risk reducer Search cost reducer Promise, bond, or pact with maker of product Symbolic device Signal of quality

Manufacturers

Means of identification to simplify handling or tracing Means of legally protecting unique features Signal of quality level to satisfied customers Means of endowing products with unique associations Source of competitive advantage Source of financial returns

Brand Equity
Brand equity is the added value that endowed to products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share and profitability that the brand commands for the firm. Brand equity is an important intangible asset that has psychological and financial value to the firm.

Brand equity

Customer based approaches to brand equity

The brand is viewed from the perspective of the customer, an individual or an organization. The power of the brand lies in what customers have seen, read, heard, learned, thought and thought about the product over time. A brand is said to have positive customer brand equity when consumers react favorably to a product. A brand is said to have negative brand equity if consumers react less favorably to the product.

Brand equity models

Brand Asset Valuator:
Developed by Advertising agency Young and Rubicam(Y&R). According to BAV there are four pillars of brand equity:Differentiation Relevance Esteem Knowledge Differentiation and relevance point to the brands future value and Esteem and acknowledge reflects the past performance of the firms.

Aaker Model:
Viewed by UC-Berkeley professor David Aaker. There are a set of five categories of brand assets and liabilities which add value to the product. They are: Brand loyalty Brand awareness Perceived quality Brand associations Other proprietary assets

Brandz:
Developed by marketing research consultants Millward and WPP. As per this model brand building involves series of steps: The objectives of each steps are the following:

Presence Relevance Performance Advantage Bonding

Brand resonance:
It also views brand building as an ascending, sequential series of steps Ensuring identification of the brand with customers minds with a specific product class or customer need. Firmly establishing the brand into the mind of the consumer. Eliciting proper customer response to in terms of brand related judgment and feelings. Converting brand response to create to create an intense, active loyalty relationship between customers and the brand.

Measuring Brand Equity:

There are two approaches for measuring brand equity. Indirect approach and direct approach.

Brand Audit: - is a consumer-focused exercise that involves a series

of procedures to access the heath of the brand, uncover its sources of equity and suggest ways to improve and leverage its equity.

Brand Audits consist of two steps:

Brand inventory and brand explanatory The purpose of brand inventory is to provide a current, comprehensive profile of how all the products and services sold by a company are marketed and branded. The brand explanatory is research activity conducted to understand what consumers think and its corresponding product category to identify sources of brand equity.

Brand tracking:
Tracking studies collect information from the consumers on a routine basis over time. Tracking studies employ quantitative study methods. It provides a basis for decision making It provides insights to marketing activities

Brand Valuation
It is concerned of estimating the total financial value of the brand.

Brand Management
Brand Management needs a long term view of marketing decisions. Consumer responses to marketing activity depend on what they know and remember about a brand.

Brand reinforcement:
Brand equity is reinforced by marketing actions that consistently convey the meaning of the brands to consumers in terms of: The product and Superiority

Reinforcing brand equity needs innovation and relevance through out the marketing program. Marketers must introduce new products to satisfy the target consumers Brand Revitalization A strategy to recapture lost sources of brand equity and identify and establish new sources of brand equity. This may include product modification or brand repositioning.

Doubts and Clarifications