- 1. BRAND EQUITY
- Presented by:-Avtar Singh
2. What is a brand?
- A brand is a name, term, sign, symbol, or design,
- or a combination of them,
- intended to identity the goods or services
- of one seller or group of sellers
- and to differentiate them from those of competitors
3. Brand equity
- Brand Equity is aset of assetslinked to abrands name and
symbolthatadds to the valueprovided by a product or service to
afirm and/or that firms customers
- Brand Equity isaset of liabilitieslinked to a brandsname and
symbol thatsubtracts from the valueprovided by a product or service
to afirm and/or that firms customers
4. Brand equity: Key aspects
- Brand equity is a set of assets
-
- Management of brand equity involves investment to create and
enhance these assets
- Each brand equity asset creates value in a variety of very
different ways
-
- It is imperative to be sensitive to the ways in which strong
brands create value
- Brand equity creates value for customer and firm
- For assets or liabilities to underlie brand equity, they must
be linked to name/symbol of the brand
5. Value to the customer
- Brand equity assets can help customers interpret, process and
store huge quantities of info about products / brands
- It can affect customers confidence in purchase decision
-
- Due to past-use experience or familiarity with brand
- Both perceived quality and brand associations can enhance
customers satisfaction with use experience
-
- Knowing brand isArrowcan make user feel different
6. Value to the firm
- Brand equity can enhance programmes to attract new customers or
recapture old ones
- Perceived quality, associations and known name provide reasons
to buy & affect use satisfaction
- Usually allows higher margins by permitting both premium
pricing and reduced promotions
- Can provide leverage in the distribution channel
- Brand equity assets provide a competitive advantage that
present a barrier to competitors
7. Major asset categories
8. Brand Equity
- Brand Loyalty: Higher Loyalty to a brand is an important asset.
It can be utilized to persuade customers for more purchase or for
spreading word of mouth.
- Name Awareness: Creating Name Awareness is a necessary
condition for trial. Customers rarely purchase an unknown
brand.
- Perceived Quality: A known brand often conveys an aura of
quality. Customers own judgment about quality induces purchase
action.
- Brand Associations: Customers attach certain subjective and
emotional attachments which form a part of the brand equity. Those
associations together form a brand personality, which suggests
situations and customers for whom the particular brand is
suited.
- Other Assets: Patents, Trademarks, etc. are valuable other
assets of a brand
9. Customer-Based Brand Equity Model Consumer- Brand Resonance
Brand Salience Consumer Judgments Consumer Feelings Brand
Performance Brand Imagery INTENSE, ACTIVE LOYALTY RATIONAL &
EMOTIONAL REACTIONS POINTS-OF-PARITY & POINTS-OF-DIFFERENCE
DEEP, BROAD BRAND AWARENESS 10. Salience Dimensions
-
- Ease of recognition & recall
-
- Strength & clarity of category membership
- Breadthof brand awareness
-
- Consumption consideration
11. Performance Dimensions
- Primary characteristics & supplementary features
- Product reliability, durability, and serviceability
- Service effectiveness, efficiency, and empathy
12. Imagery Dimensions
-
- Demographic & psychographic characteristics
-
- Group perceptions -- popularity
- Purchase & usage situations
-
- Type of channel, specific stores, ease of purchase
-
- Time (day, week, month, year, etc.), location, and context of
usage
-
- Sincerity, excitement, competence, sophistication, &
ruggedness
- History, heritage, & experiences
13. Judgment Dimensions
14. Feelings Dimensions
15. Resonance Dimensions
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- Frequency and amount of repeat purchases
-
- Love brand (favorite possessions; a little pleasure )
-
- Visit web site, chat rooms