Creating Band Equity

According to American Marketing Association, brand is a name, term, sign, symbol, or design, or
combination of them, intended to identify the goods or servicesof one seller or group selles, and to
differentiate them from those competitors.

Role of Brands

Brands perform a number of function for both customers and firms.

Brands role for consumers - brands is a promise between the firm and the consumer. It
means to set consumer’s expectation and reduce their risk, in return for the customer’s
loyalty, the firm promises to reliably deliver a predictably positive experience and set of
desireable benefits with its products and services.(the key is that it fullfills or exceeds
customer expectations in satisfying their needs and wants.)

Brand relationship , like any realtionship, are not cast in a stone, marketers must be sensitive
to all the words and actions that might strengthen or weaken consumer’s ties.

Brands role for firm

- Offers the firm legal protection for unique features or aspect of the product.
- Brand name can be protected through registered trademark.
- Manufacturing processes can be protected through patents.
- Packaging can be protected through copyrights and proprietary designs.

Credible brand signal a certain level of quality, so satisfied buyer can easily choose the
product again.

Loyalty also can translate into customers willingness to pay higher price.

(Example Coca Cola, they tried to replace its old formula, and they spend 4m of market
research etc, but after launch , bcoz the emotional attachment consumer had to coca cola,
provoked a national uproar. 10 weeks later, they reintroduced the old coca cola as a classic
coke. Ironically, the failde intorduction of new coke, ended up giving coca cola a stronger
status .)

The scope of branding

How do u brand a product?

Branding is a process of endowing a product and services with the power of a brand. Its all
about creating differences between the products.

Branding creates a mental structures that helps consumer organize their knowledge about
products and service in a way that clarifies their decision making and, provide value to the
firm.
 For branding strategies to be succesful and a brand value to be created, consumers must be
convinced there are meaningful differences among brands in the product or service
category.

(Example, real madrid or MU)

Defining Brand Equity

Brand equity is the added value endowed to products and services with consumers.

It may be reflected inthe way consumers think, feel, and act with respect to the brand, as
well as in the prices, market share, and profitability it commands.

Customer brands equity :

- A brand has positive customer based brand equity when consumers react more
favorably to product and the way it is marketed when the brand is identified
than when it is not identified.
- A brand has negative customer based brand equity if consumers react less
favorably to marketing activity for the brand under the same circumstances.

There are 3 key ingredients for consumer based equity :

- Brand equity arises from differences in consumers response.

- Differences in response are a result of consumer’s brand knowledge.
- Brand equity is reflected in perceptions, preferences, and behavior related to all
aspects of marketing of a brand.

Brand Equity Models

BRANDASSET VALUATOR – advertising agency Young & Rubicam(Y&R) developed a model equity
called Brandasset Valuator(BAV). There are 4 key component of pillars of brand equity according to
BAV:

- Energized differentiation – measures the degree to which a brand is seen as

different from others as well as its pricing power.
- Relevance – measures the appropriateness and breadth of brand’s appeal.
- Esteem – measures perceptions of quality and loyalty, or how well the brand is
regarded and respected.
- Knowledge – measures how aware and familiar consumers are with the brand
and the depth of their experience.

Energized differentiation and relevance combine to determine brand strength(a

leading indicator that predicts future growth value.)

Esteem and knowledge together create a brand stature(a report card of past
performance and a lagging indicator of current operating value)
BRANDZ – marketing research consultants Millward Brown and WPP have developed the Brandz
model of brand strength, at the heart of which is BrandDynamics model(a system of brand equity
measurements based on millward brown’s meaningfully different framework) that reveals a brand’s
current equity and opportunities for growth

Brand dynamics employs a set of simple scores that summarize a brand’s equity and are
relatable directly to real world financial and business outcome.

Brand dynamics maintain that 3 different types of brand associations are crucial for building
customer predisposition to buy a brand : meaningful , different, and salient brand
association.

These success of a brand along those 3 dimensions, in turn is reflected in 3 important

outcome measures:

- Power – a prediction of the brand’s volume share

- Premium – a brand’s ability to command a price premium relative to the
category average
- Potential – the probability that a brand will grow value share

Brand Resonance Model – this model also view brand building as an ascending series of steps, from
bottom to top

- Ensuring customers identify the brand and associate it with specific product
class or need
- Firmly establishing the brand meaning in customers mind by strategically linking
a host of tangible and intangible brand association.
- Eliciting the proper customer response in term of brand related judgement and
feelings.
- Converting customers brand response to intense active loyalty.

Creating significant brand equity requires reaching the top of the brand pyramids which
occurs only if the right building blocks are put into place:

- Brand salience – how often and how easily the customers think of the brand
under various purchase or consumption situations.
- Brand performance – how well the product or service meets customer
functional needs.
- Brand imagery – describe the extrinsic properties of the product or service,
including the ways in which brands attempt to meets customers psychological or
social needs.
- Brand judgments – focus on customers own personal opinion and evaluation
- Brand feelings customers emotional response and reaction with respect to a
brand.
- Brand resonance – describe the relationship customer have with the brand and
the extent to which they feel they’re in sync with it.

Building Brand Equity

3 main sets of brand equity drivers:

- The initial choice for brand element or identities making up the brand(brand
names, URL, logos, symbols, characters, spokespeople, slogans, jingles,
packages, signage)
- The product and service and all accompanying marketing activities and
supporting marketing programs.
- Other association indirectly transferred to the brand by linking it to some other
entity(a person, place, or thing)

Choosing a brand elements

Brand elements are device which can be trademarked, that identify and differentiate the
brand. Example, nike slogan just do it, kitkat

Brand elements choice criteria :

- Memorable – how easily do consumer recall and recognize the brand element,
when at both purchase and consumption.
- Meaningful – is the brand element credible?, does it suggest the corresponding
category and a product ingredient or the type of person who might use the
brand?
- Likeable – how aesthetically appealing is the brand element?
- Transferable – can the brand element introduce the new product in the same or
different categories? Does it add to brand equity across geographic boundaries
and market segments? (Example amazon)
- Adaptable – how adaptable and updateable is the brand element? (shell logo
has change 10 times)
- Protectable – how legally protectable is the brand elements? How competitively
protectable? (when brand name are in danger of becoming synonymous with
product categories)