2 Contents The concept of brand equity Steps in building a brand Sources of brand equity
3 IntroductionBuilding brands is an important aspect of marketing for the long-term sustenance of a firm.A brand name not only imparts recognition to a product but gives it an identity. In the same product class, products of different firms can have different meanings for consumers.The question is how do consumers associate these different meanings to different brands?This is because a brand name adds value to a product beyond the brand elements and the value added depends on customer perception
4 Brand Equity defined‘Brand equity can be thought of as the additional cash flow achieved by associating a brand with the underlying product or service’(Biel 1992).
5 Brand Equity defined‘Brand equity is a set of brand assets and liabilities linked to a brand, its name, and symbol, that adds value to or subtracts from the value provided by a product or service to a firm and/or to that firm’s customers’(Aaker 1991).
6 Brand Equity defined‘The differential effect the brand knowledge has on consumer response to marketing of that brand’Keller, 2004Keller (2004) defines brand equity from the customer’s perspective
7 Need for Building Brand Equity Brand equity has a positive influence on market power.It positively impacts consumers’ willingness to pay price premiums.It leads to ‘higher efficiency and effectiveness of their marketing programs’.It positively impacts the company’s market share.It results in improved future profits and long-term cash-flow.It can build brand loyalty, which in turn reduces marketing costs.
8 Need for Building Brand Equity It can deliver emotional, safety, prestige, or other benefits that are important to consumers.It reduces the anticipated risk, enhances anticipated confidence in the brand purchase decision, and increases satisfaction with the brand.It leads to sustainable competitive advantage.It ultimately leads to marketing success for the brand.Strong brand equity can help in achieving success for new products launched as brand extensions.
10 Brand Equity in a Business to Business Context Brand identity — Manufacturer’s brand salienceBrand meaning — Includes performance and reputationBrand response — includes judgements and sales force relationshipsBrand relationships — partnership solutions
11 Sources of Brand Equity JointBrandingprogrammesPerceivedAdvertisingspendingCorporateSocietalMarketingBrandknowledgeBrandelementsBrandassociationsBuildingBrandEquityBrandcommunityPerceivedqualityCountry-of-originBrandloyaltyCompanyimageEndorsementsEvents, thirdpartyDistributionchannels
12 Levels of brand awareness Level 6: Opinion about BbrandLevel 5: Knowledge of the BbrandLevel 4: Brand supremacyLevel 3: Top-of-the mind recallLevel 2: Brand recallLevel 1: Brand recognition
13 Quick Recapitulation The concept of brand equity Steps in building a brandSources of brand equity