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
Brand name awareness
Perceived quality
Brand loyalty
Brand associations
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
