“BRAND EQUITY”

Presented by :- Avtar Singh

 What is a brand?
A brand is a name, term, sign, symbol, or
design,
or a combination of them,
intended to identity the goods or services
of one seller or group of sellers
and to differentiate them from those of
competitors
 Brand equity
 Brand Equity is a set of assets linked
to a brand’s name and symbol that
adds to the value provided by a
product or service to a firm and/or
that firm’s customers
 Brand Equity is a set of liabilities
linked to a brand’s name and symbol
that subtracts from the value
provided by a product or service to a
firm and/or that firm’s customers
 Brand equity: Key aspects
 Brand equity is a set of assets
– Management of brand equity involves investment to
create and enhance these assets

 Each brand equity asset creates value in a variety

of very different ways
– It is imperative to be sensitive to the ways in which
strong brands create value

 Brand equity creates value for customer and firm

 For assets or liabilities to underlie brand equity,
they must be linked to name/symbol of the brand
 Value to the customer
 Brand equity assets can help customers
interpret, process and store huge quantities of
info about products / brands
 It can affect customers’ confidence in purchase
decision
– Due to past-use experience or familiarity with brand
 Both perceived quality and brand associations
can enhance customers’ satisfaction with use
experience
– Knowing brand is Arrow can make user feel different
 Value to the firm
 Brand equity can enhance programmes to
attract new customers or recapture old ones
 Perceived quality, associations and known
name provide reasons to buy & affect use
satisfaction
 Usually allows higher margins by permitting
both premium pricing and reduced
promotions
 Can provide leverage in the distribution
channel
 Brand equity assets provide a competitive
advantage that present a barrier to
competitors
 Major asset categories
1. Brand name awareness

2. Perceived quality

3. Brand loyalty

4. Brand associations
 Brand Equity
 Brand Loyalty: Higher Loyalty to a brand is an
important asset. It can be utilized to persuade
customers for more purchase or for spreading word of
mouth.
 Name Awareness: Creating Name Awareness is a
necessary condition for trial. Customers rarely
purchase an unknown brand.
 Perceived Quality: A known brand often conveys an
aura of quality. Customers own judgment about quality
induces purchase action.
 Brand Associations: Customers attach certain
subjective and emotional attachments which form a
part of the brand equity. Those associations together
form a brand personality, which suggests situations
and customers for whom the particular brand is suited.
 Other Assets: Patents, Trademarks, etc. are valuable
other assets of a brand
Customer-Based Brand Equity Model

Consumer- INTENSE,
INTENSE,ACTIVE
ACTIVE
LOYALTY
LOYALTY
Brand
Resonance

RATIONAL
RATIONAL&&
Consumer Consumer EMOTIONAL
EMOTIONAL
Judgments Feelings REACTIONS
REACTIONS

POINTS-OF-
POINTS-OF-
PARITY
PARITY&&
Brand Brand POINTS-OF-
POINTS-OF-
Performance Imagery DIFFERENCE
DIFFERENCE

DEEP,
DEEP,BROAD
BROAD
Brand Salience BRAND
BRAND
AWARENESS
AWARENESS
 Salience Dimensions

 Depth of brand awareness

– Ease of recognition & recall
– Strength & clarity of category
membership

 Breadth of brand awareness

– Purchase consideration
– Consumption consideration
 Performance Dimensions

 Primary
characteristics &
supplementary features
 Productreliability, durability, and
serviceability
 Service
effectiveness, efficiency, and
empathy
 Style and design
 Price
 Imagery Dimensions
 User profiles
– Demographic & psychographic characteristics
– Actual or aspirational
– Group perceptions -- popularity
 Purchase & usage situations
– Type of channel, specific stores, ease of purchase
– Time (day, week, month, year, etc.), location, and context of
usage
 Personality & values
– Sincerity, excitement, competence, sophistication, &
ruggedness
 History, heritage, & experiences
– Nostalgia
– Memories
 Judgment Dimensions
 Brand quality
– Value
– Satisfaction
 Brand credibility
– Expertise
– Trustworthiness
– Likability
 Brand consideration
– Relevance
 Brand superiority
– Differentiation
 Feelings Dimensions
 Warmth

 Fun

 Excitement

 Security

 Social approval
 Self-respect
 Resonance Dimensions
 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
 Active engagement
– Seek information
– Join club
– Visit web site, chat rooms