Brand Equity

■ Brand equity is the added value that endowed to products and services. This value
may be reflected in how consumers think, feel, and act with respect to the brand, as
well as the prices, market share and profitability that the brand commands for the
firm. Brand equity is an important intangible asset that has psychological and
financial value to the firm
Customers based approaches to brand
equity
■ The brand is viewed from the perspective of the customer, an individual or an
organization.
■ The power of the brand lies in what customers have seen, read, heard, learned,
thought and thought about the product over time. A brand is said to have positive
customer brand equity when consumers react favorably to a product.
■ A brand is said to have negative brand equity if consumers react less favorably to
the product.
Brand Equity models

1. Brand Asset Valuator

Four pillars of brand equity:
■ Differentiation
■ Relevance
■ Esteem
■ Knowledge
Differentiation and relevance point to the brands future value and Esteem and
acknowledge reflects the past performance of the firms.
2. Aaker Model:
There are a set of five categories of brand assets and liabilities which add value to the product. They
are:
■ Brand loyalty
■ Brand awareness
■ Perceived quality
■ Brand associations
■ Other proprietary assets

3. Brandz:
As per this model brand building involves series of steps: The objectives of each steps are the following:
■ Presence
■ Relevance
■ Performance
■ Advantage
■ Bonding
Measuring Brand Equity: There are two approaches for measuring brand equity. Indirect
approach and direct approach.
■ Brand Audit: a consumer-focused exercise that involves a series of procedures to access the
heath of the brand, uncover its sources of equity and suggest ways to improve and leverage
its equity.
■ Brand tracking:
-Tracking studies collect information from the consumers on a routine basis over time. Tracking
studies employ quantitative study methods.
-It provides a basis for decision making
-provides insights to marketing activities
Brand Architecture

■ Brand Architecture is the logical, strategic and relational structure for all of the
brands in the organization’s brand portfolio.
Brand Architecture
Do we need? It’s important?

■ Most companies have multiple brands from mergers and acquisitions. In addition
aggressive brand extensions can all result in increasingly complex structures which
if not done right can result in confusion.
■ A clear brand architecture will help structure a brand’s position both now and for the
future.
Benefit

■ Targeting needs of specific customer segments

■ Significantly reducing marketing costs
■ Clarifying brand positioning, naming, and messaging
■ Building and protecting brand equit
Brand architecuture structure