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What Is Brand Equity?
What Is Brand Equity?
Brand Equity is the sum total of all the different values that people attach to a brand name Reflected in how consumers think, feel & act W.R.T. the brand. Reflected as prices, market share & profitability the brand commands for the firm. It is a common denominator to interpret and assess the psychological & financial value of a brand
The differential effect of brand knowledge on consumer response to the marketing of the brand is known as customer based brand equity.
CBBE
Brand knowledge is the key of brand equity. How to create brand knowledge?
Brand knowledge = brand equity
Brand awareness
Brand image
Brand recognition
Brand recall
Establishing brand awareness: Repeated exposure Frequent Advertising Creating positive experiences. Sponsorship and event marketing etc. Celebrity endorsement Develop a slogan or jingle or logo or symbol
2. BRAND IMAGE:
It is consumers perception about a brand, reflected by brand associations in the memory of consumer. Brand associations are the other nodes in memory which leads to brand node marketing programs that link strong, favorable and unique associations to the brand in memory.
Greater loyalty, lesser vulnerability Higher prices, Larger margins Additional brand extension opportunities Channel power - greater trade support Additional retail shelf space Reduces customer switching behavior Prevents erosion of market share Legal protection of the brand Licensing opportunities
ConsumerBrand Resonance
4. Brand relationships
Consumer Judgments
3. Brand responses.
Brand Performance
2.Brand meaning
Brand Salience
1. Brand identity
1. BRAND SALIENCE Measures awareness of the brand Brand at top of mind or not? What type of cues & reminders are required? Customer has to be clear about Category Identification Needs Satisfied & Secondary Features
2. BRAND PERFORMANCE
It describes how well the product meet customers functional demands. Parameters used for evaluation: ingredients of the product Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency,& Empathy Style and Design; Price
3. BRAND IMAGERY
It includes the ways in which brand attempts to meet customers psychological or social needs. It is the way people think about a brand abstractly and not actually. Imagery associations can be made directly or indirectly. Four intangibles can be linked to the brand: User Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences
Imagery Dimensions
User profiles Demographic and psychographic characteristics Actual or aspirational Group perceptionspopularity Purchase and usage situations Type of channel, specific stores, ease of purchase Time (day, week, month, year, etc.), location, and context of usage Personality and values Sincerity, excitement, competence, sophistication, and ruggedness History, heritage, and experiences Nostalgia Memories
4. BRAND JUDGEMENT
It is customers personal opinion or evaluation of the brand. It is combination of brand performance & brand imagery.
Four types of judgments are particularly important: Brand quality
1.
2.
Brand credibility
3.
Brand consideration
4.
Brand superiority
5. BRAND FEELINGS
These are customers emotional responses & reactions to the brand. It also includes the feelings evoked by marketing program for the brand or by other means. Few important brand feelings are: Warmth, Fun Excitement, Security, Social Approval, Self-Respect
6. BRAND RESONANCE
It describes the nature of relationship between the brand & customer. It is characterized in terms of intensity, or the depth of psychological connect in form of: Behavioral loyalty Frequency and amount of repeat purchases
Attitudinal attachment Love brand (favourite possessions; a little pleasure) Proud of brand
Cult brands
Cult stands for culture; a system of serious devotion towards a particular figure or object It is a fan following of customers and their loyalty towards their aspirational brands A cult is the result of peoples opinion of your brand Therefore you have to find a way how you can attract customers representing your brand image and give them a sense of belonging.
In 1986, J.N.Kapferer proposed that brand is having gift of speech. It speaks of the product it creates & can be analyzed as any other form of communication. This model is having sender (brand marketer) & receiver (prospect). It includes a vertical division. Left side externalization social facetsoutward expression-visible facets of brand Right side- internalization-internal to brand-not visible- stays in spirit of brand.
EXTERNALISATION Relationship
INTERNALISATION Culture
Reflection
Self-Image
PICTURE OF RECIPIENT
Physique : what the product is, what does it do, how does it add value to customers. Personality What are the features of brand if it was a person? Brand characters like fido-dido, maharaja, ronald are the shortcuts for creating it.
Reflection: A brand tends to build an image of the buyer which it seems to be addressing . Pepsi to youngsters and Thums up to adventurous. Its the brands perceived client type. Self Image: Reflection is targets outward mirror (they are..) while self image is targets own internal mirror (I feel, I am ) What would the users imagine while using the product?