2. Brand equity refers to the intangible value that accrues to a company as a result of its
successful efforts to establish a strong brand. A brand is a name, symbol, or other
feature that distinguishes the company's goods or services in the marketplace.
Consumers often rely upon brands to guide their purchase decisions. The positive
feelings consumers accumulate about a particular brand are what makes the brand a
valuable asset for the company that owns it. Alan Mitchell of Marketing Week
described brand equity as "the storehouse of future profits which result from past
marketing activities."
3. Positive brand equity can help a company in a
variety of ways. The most common is the
financial benefit which enables a company to
charge a price premium for that brand. For
example, the Tiffany’s brand has enough
equity that a price premium isn’t just
accepted, it’s expected.
4.
5. Key Drivers of Corporate and Brand Identity
Salience: relates to the depth and breath of brand awareness in terms of ease of brand recognition
and recall
Performance: satisfaction of the customer functional needs such as the product’s characteristics
and features i.e. reliability, durability, style, design and price
Imagery: satisfaction of customer’s psychological needs such as type of purchase and usage
situations, and any perceived values from customers
Judgments: focus on customer’s opinions based on Performance and Imagery dimensions i.e.
Brand quality, brand credibility, brand consideration and brand superiority
Feelings: customer’s emotional responses and reactions to the brand such as warmth, excitement,
fun, security etc.
Resonance: relationship and level of identification of the customer with the brand. This typically
allows customers to be proud of owning the brand, creating a sense of behavioral loyalty and
active engagement, resulting in potential repeat purchases
6. Good to Good to
excellent excellent
extension candidates for
candidates extension within
within the parent and outside
category parent category
Weak extension Weak extension
candidates candidates
Brand extensions are are certainly less expensive than building a new brand from the
scratch. If a brand has strong equity and an established customer franchise, the
extensions may even have a ready-made market. The problem arises when companies
stretch brands in ways and directions that don’t make sense.
7.
8.
9.
10.
11. What makes a brand relevant
in 2012? Curiously not the
same as in 2011. In a time of
social media, Facebook,
cloud computing, financial
crisis, emerging markets,
disruption and changing
values brands are evolving
and the DNA of a successful
brand is partly done through
the way you engage your
audiences, network and
create value, renewal the
projection strength.
