CREATING BRAND EQUITY

JORIGEN T. TUPAS
REPORTER
 WHAT IS A BRAND?

A brand is a name, term, sign, symbol or

design, or a combination of them , intended to
identify the goods or services of one seller or
group of sellers and to differentiate them from
those of competitors.
WHAT IS BRANDING?

Branding is endowing
products and services with
the power of the brand.
 WHAT IS BRAND EQUITY?
It is “the differential effect of brand knowledge on consumer
response to the marketing of the brand” (Keller, 1993)
 The three components of brand equity
 Brand perception: Brand perception is what customers believe a product or
service represents, not what the company owning the brand says it does. In
effect, the consumer owns brand perception, not the company.
 Positive or negative effects: When consumers react positively to a brand, the
company’s reputation, products and bottom line will benefit, whereas a
negative consumer reaction will have the opposite effect.
 Value: Positive effects return tangible and intangible value – tangibles include
profit or revenue increase; intangibles are brand awareness and goodwill.
Negative effects can diminish both tangibles and intangibles.
Uber, for example, was trending positively in late 2016, but a series of scandals
ranging from sexism to spying negatively impacted its reputation, bottom line
and brand equity.
 ORDER VALUE PER CUSTOMER

If your brand has positive brand equity, people are more likely to
spend more money to purchase those products. This results in higher
profit margins. It may cost companies the same amount as
competitors to make a product. However, consumers are willing to
pay for the brand name .

For example, a pair of designer shoes may be worth more to

consumers as opposed to those of a lesser known or generic brand.
 Real World Examples of Brand Equity
A general example of a situation where brand equity is important is
when a company wants to expand its product line. If the brand's
equity is positive, the company can increase the likelihood that
customers might buy its new product by associating the new product
with an existing, successful brand.
For example, if Campbell's releases a new soup, the company is
likely to keep it under the same brand name rather than inventing a
new brand. The positive associations that customers already have
with Campbell's make the new product more enticing than if the
soup has an unfamiliar brand name. Below are some other examples
of brand equity.
Coca-Cola

With a profit margin of 26.7% as of June 2020, Coca-Cola is often

rated the best soda brand in the world.6
However, the brand itself represents more than just the products—
it's symbolic of positive experiences, a proud history, even the U.S.
itself. Also recognized for its unique marketing campaigns, the Coca-
Cola corporation has made a global impact on its consumer
engagement.
 Reputation & Less Ad Spend

If your products have a good reputation, people will seek you out as their go-to
brand. This results in less money being spent via advertising and leads to
increased sales when you launch a new product due to established trust.

 Customer Lifetime Value

 Customer Loyalty
  Stock Price
 HOW TO BUILD YOUR BRAND EQUITY

Here are four steps towards building your own brand equity.
1. Build greater awareness
2. Communicate brand meaning and what it stands for
3. Foster positive customer feelings and judgments
4. Build a strong bond of loyalty with your customers
 KELLER’S BRAND EQUITY MODEL

Keller’s pyramid is sectioned off with four

levels. The levels of the Brand Equity
pyramid are (Moving from base to top):
1.Identity
2. Meaning
3. Response
4. Relationships
HOW TO USE THE KELLER MODEL

1.Start with your brand identity.

2. Understand and communicate the meaning of your brand

To provide clarity, Keller’s model

breaks down performance into 5
specific key performance indicator
categories.
•primary characteristics and features
•product reliability, durability, and
serviceability
•service effectiveness, efficiency, and
empathy
•style and design
•price
3. What sort of response does your brand evoke from customers?
4. Understand the relationship you’ve built with your customers
  
DAVID AAKER’S BRAND EQUITY MODEL

He believes recognition is the crucial

driver of brand equity and identified four
contributors to brand equity:
 perceived quality
 brand loyalty
 brand awareness
 brand associations.
EXAMPLES OF COMPANIES WITH HIGH BRAND
EQUITY
Below are the most valuable brands in the world in 2022, according to Interbrand.