What is Brand Equity?

“To be persuasive we must be believable; to be believable we must be credible; to be credible we must be truthful.”Edward R. Murrow

It also seen as the a set of assets (and liabilities) linked to a brand’s name and symbol that adds to (or subtracts from) the value provided by a product or services to a firm and/or that firm’s customers

Brand equity is the sum of all the hearts and minds of every single person that comes into contact with your company.”Christopher Betzter

This is the value of a brand, based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations and other assets such as patents, trademarks and channel relationships.

The ability of a brand to generate more value due to the associations made by its customers.

TWO WAYS BRAND EQUITY ALLOWS COMPANIES TO GENERATE VALUE .

A strong brand can often be extended to related,or even unrelated, products, providing these products with a sales boost. This allow the substantial cost of advertising and promoting a brand to be spread over more products,but the additional exposure can strengthen the core brand.

A brand enables a company to generate value because it can often command a price premium over comparable generic products

“A product can be quickly outdated, but a successful brand is timeless.”Stephen King

Brand Equity does not always have positive impacts on the value generated by a company. Some brands will generate a bad reputation due to association with poor products and bad marketing, and this can cause negative brand equity, where consumers actively prefer generic products to thebranded alternative.

“An image is not simply a trademark, a design, a slogan or an easily remembered picture. It is a studiously crafted personality profile of an individual, institution, corporation, product or service.”Danie J BoorstinZZ

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Growing Brand equity

“Long-term brand equity and growth depends on our ability to successfully integrate and implement all elements of a comprehensive marketing program.”Timm F Crull, Chairman & CEO of Nestle

As consumers choose between brands, they look out for compelling reasons to help them make those decisionsBrands with a meaningful point of difference are more likely to be chosen repeatedly by consumers and ultimately, enjoy successExample: Apple (Iphone). The Iphone is essentially an operating system that allows users to add whatever application they choose

Standin

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“A tiny change today brings a dramatically different tomorrow.”Richard Bach

BRAND BUILDING PROCESSB

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“A brand is a personification of a product, service, or even entire company.”Robert Blanchard

Achieving the right brand identity involves creating brand salience with customers.

Brand salience relates to aspects of the awareness of the brand, for example, how often and easily the brand is evoked under various situations or circumstances.

Our success is a direct result of knowing how to market a brand and having the right people representing the brand.”Greg Norman

BRAND SALIENCE

A good product that completely satisfies consumer’s needs and wants is the base for a successful brand.

“Good decisions come from experience. Experience comes from making bad decisions. ”Mark Twain

BRAND PERFORMANCE

Price

Service effectiveness, efficiency,

and empathy

Product reliability,

durability, and serviceability

Style and design

Brand imagery is how people think about a brand abstractly, rather than what they think the brand actually does.

“Create your own visual style… let it be unique for yourself and yet profitable for others.”Orson Welles

BRAND IMAGERY

Brand judgments focus on personal evaluations and opinions that customers have regarding to a brand.

It involves how different performance and imagery associations are put together to form different kinds of opinions.

“Don’t think about consumer needs in terms of product categories, but rather in terms of consumer experiences.”James Thompson

BRAND JUDGEMENTS

Brand feelings are customers’ emotional responses and reactions with regards to the brand.

“Quality in a service or product is not what you put into it. It is what the client or customer gets out of it.”Thomas J. Watson Jr.

BRAND FEELINGS

Self respect

Security

Excitement

Social approval

FunWarmth

Brand resonance is the ultimate relationship and level of identification that the customer has with a brand,

It is about the kind of relationship where the customer feels that they are in sync with the brand.

“I am not looking like Armani today and somebody else tomorrow. I look like Ralph Lauren. And my goal is to constantly move in fashion and move in style without giving up what I am.”Ralph Lauren

RESONANCE

SUSTAINING BRAND EQUITY

“Brand value is very much like an onion. It has layers and a core. The core is the user who will stick with you until the very end.”Edwin Artzt

We must deliver

“There is no greater fraud than a promise not kept.”Scottish saying

Availability

“Quality in a service or product is not what you put into it. It is what the client or customer gets out of it.”Thomas J. Watson Jr.

Preference

“The golden rule for every businessman is to put yourself in your customer’s place.”Orison Swett Marden

Loyalty

Brand loyalty is according to Aaker a very important issue and an enduring asset for some businesses is the loyalty of the regular customers.

Four importance of brand loyalty.•.Loyal customers create and strengthen the image of a brand• Loyal customers give a firm some breathing room.• It is more difficult to enter a market where the competitor benefits from existing loyal customers. • It reduces marketing costs, since loyal existing customers are easier to hold.

“Do something worth remembering!”Elvis Presley

Awareness

Brand awareness is consumers´ ability to identify the brand under two different circumstances;

Brand recognition and Brand recall performance.

Brand awareness is very important whenthe customers wants to make decisions

Brand awareness is formed by increasing theknowledge of the brand through repeated exposure and strong associations with the right product category or relevant purchase or consumption cues

Our success is a direct result of knowing how to market a brand and having the right people representing the brand.”Greg Norman

Familiarity

“The stronger the dialog, the stronger the brand; the weaker the dialog, the weaker the brand.”

Larry Webber

Image and Personality

If you want to create a brand image you must establish it in people’s mind/memory. Communicating a brand image is an essential part of marketing and a fundamental marketing activity in order to be successful•. Perceptions in general differ from person to person, therefore it is crucial for the company to have a well defined objective of how they wish to be portrayed and perceived by their consumers.

“Customers must recognize that you stand for something.”Howard Schultz, Starbucks

Association

“The more you engage with customers the clearer things become and the easier it is to determine what you should be doing”John Russell, President, Harley-Davidson

“A great brand is a story that’s never completely told.”

Scott Bedbury

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