Brand equity

Managing
Brand Equity
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Brand equity is
a set of brand assets and
liabilities linked to a brand


Elements of Brand Equity:
Brand Loyalty
Brand Awareness
Perceived Quality
Brand Associations


Brand Loyalty
Brand loyalty is a measure of the
attachment that a customer has to a
brand.
It reflects how likely a customer will be to
switch to another brand, especially when that
brand makes a change, either in price or in
product features.


Brand Loyalty Pyramid
Committed Buyer
Likes the Brand - Considers it a Friend
Satisfied Buyer With Switching Costs
Habitual Buyer - No Reason to Change

Switchers / Price Sensitive

Indifferent – No Brand Loyalty


Measuring Brand Loyalty
• Purchase Behavior Patterns
• Switching Cost Analysis
• Satisfaction Measurement

Strategic Value of Brand Loyalty
• Reduce marketing cost
• Trade (channel distribution) leverage
• Attracting new customers


Enhancing
Brand Loyalty
• Treat the customer right
• Stay close to the customer
• Measure/manage customer
satisfaction
• Create switching cost
• Provide extras


Brand Awareness is
the ability of a potential
buyer to recognize or recall
that a brand is a member of
a certain product category


Brand Awareness Hierarchy

Top of Mind
Brand Recall
Brand Recognition
Unaware of Brand


Value of Brand Awareness
• Anchor to which other associations can be
attached
• Familiarity and liking
• Signal of substance/commitment
• Brand to be considered


How to Achieve
Brand Awareness
Be different, memorable
Involve a slogan or jingle
Symbol exposure
Publicity
Event sponsorship

Perceived Quality
The customer's perception of the overall
quality or superiority of a product or service
with respect to its intended purpose, relative to
alternatives. Perceived quality is a perception
by customers.


What • Performance
• Features
Influences
• Conformance with
Perceived
specifications
Quality of
• Reliability
Product?
Product
• Durability
• Serviceability
• Fit and finish


Appearance What
Reliability Influences
Competence Perceived
Responsiveness Quality of
Empathy Service?
Service

The Value of Perceived Quality
• Reason-to-Buy
• Differentiate/Position
• A Price Premium
• Channel Member Interest
• Brand Extensions

Brand Association
A brand association is anything
"linked" in memory to a brand.
Thus, McDonald's could be linked to a
character such as Ronald McDonald, a
consumer segment such as kids, a feeling
such as having fun, a product characteristic
such as service, or a symbol such as the
Golden Arches.


Some Types of
Associations

• Product Attributes
• Customer Benefits
• Relative Price
• Lifestyle/Personality
• Celebrity/Person
• Use/Application

The Value of Brand
Associations

• Help Process/Retrieve
Information
• Differentiate/Position
• Reason-to-Buy
• Create Positive
Attitudes/Feelings
• Basis for Extensions

Maintaining
Associations
• Be consistent over time
• Be consistent over
elements of the marketing
program
• Manage disasters in order
to minimize their damage

Criteria for
Brand Name Selection
• Be easy to learn and remember
• Suggest the product class
• Support a symbol or slogan
• Suggest desired association without
being boring or trivial
• Not suggest undesired associations
• Be distinctive
• Be available and protectable legally

Source of Reference:
David Aaker, Managing Brand Equity : Capitalizing on
the Value of A Brand Name, Free Press


Brand equity

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