Brand Management

Brand Equity
Brand Equity is a set of brand assets and liabilities linked to a brand, its name and symbol add to or subtract from the value provided by a product or service to a firm and/or to that firms customers Brand Equity can be thought of as the additional cash flow achieved by associating a brand with the underlying product or service

Brand Equity
Conceptualizing Brand Equity
Drive toward or against brand Customer Behaviour Discrimination And value

Product

Perception/ Knowledge structure

Worth of the Brand

Brand Equity (Surplus +/-)

Brand Equity
Brand Equity: Creates value to both Customer & to the Marketer Value to Customers:
It helps customers in Information processing The brands assets enhance customer confidence in the purchase decision Usage satisfaction

Brand Equity
Value to Marketer:
Retaining customer is much less costly than retention when a product is unbranded Launching of a new product with extension may be much simpler, easy & less costly. allows a firm to have greater customer loyalty allows a firm to charge premium provides greater opportunity for growth is a good source of achieving leverage in the distribution channels is a provider of competitive advantage

Brand Image
Perception about a brand as reflected by the associations held in consumers memory, the beliefs, attributes, benefits etc
Brand Image

All non-image factors Contributing to Brand equity

BRAND EQUITY

Market value of BRAND

Brand Image
Brand Image Dimensions:
Hard Associations:
Perception of tangible/functional attributes of the brand

Soft Associations:
Emotional attributes of the brand

Image of the company:

ASSETS & LIABILITIES

Brand Loyalty Name Awareness Perceived Quality

An asset is something that enhances the value, While liability decreases the value

ASSETS & LIABILITIES

Brand Loyalty
Consisting of repeated purchases prompted by a strong internal disposition Brand loyalty provides insulation against competitive assaults Allows opportunity to command a premium different levels of brand loyalty
Level 1: indifferent buyer buying is done on a basis other than brand, like availability, price etc. Level 2: absence of dissatisfaction Level 3: satisfied buyer switching cost loyal customers Level 4: brand as a friend Level 5: committed customer

ASSETS & LIABILITIES

Brand awareness Brand recognition
The ability to confirm Prior exposure

Brand Recall
ability to remember the brand when a product category is thought about

How does brand awareness create value? Brand name acts as a central node to which other associations can be attached, like attributes, benefits etc Recognition confirmation of prior exposure implies familiarity, which leads to liking Ability to consider in the decision process

ASSETS & LIABILITIES

Perceived Quality: The overall feeling that a customer tend to have about the brand. How perceived quality generates value?
Gives a powerful reason to the customer to consider and buy a specific brand Brands with higher quality perception can afford to charge price premiums. Brands with higher perceived quality find greater acceptance from trade partners Perceived quality can be the basis to leverage brands into launching extensions.