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 evaluate the psychological
& financial value of a brand.
In other words brand equity is the
value and strength of the Brand that decides its worth. It can also be defined
as the differential impact of brand knowledge on consumer response to the Brand
Marketing. Brand Equity exists as a function of consumer
choice in the market place. The concept of Brand Equity comes into
existence when consumer makes a choice of a product or a service. It occurs
when the consumer is familiar with the brand and holds some favourable positive
and distinctive brand associations in the
memory.
BRAND
EQUITY CAN BE DETERMINED BY MEASURING:
·
Return to share holders.
·
Evaluating the brand image for the various
parameters that are considered significant.
·
Evaluating the brands earning potential in long
run.
·
By evaluating the rise in volume of sales, that
has been created by the brand.
BENEFITS
OF BRAND EQUTIY
·
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
CONSUMER BASED BRAND EQUITY
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 products meet customer’s 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 customer’s
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 inspirational
Group perceptions—popularity
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 customer’s personal opinion or evaluation of the brand.
It is combination of brand performance & brand imagery.
Four types of judgments are particularly important:
Brand quality
Value
Satisfaction
Brand
credibility
Expertise
Trustworthiness
Likeability
Brand
consideration
Relevance
Brand superiority
Differentiation
5. BRAND
FEELINGS
These are customer’s 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 (favorite
possessions; “a little pleasure”)
Proud of brand
Sense of community
Kinship
Affiliation