Managing Brand Equity
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Brand equity refers to the value of a brand and consists of brand loyalty, brand awareness, perceived quality, and brand associations. Brand loyalty measures how attached customers are to a brand and are less likely to switch. High brand awareness means customers easily recognize or recall the brand. Perceived quality is customers' perception of a brand's quality compared to alternatives. Brand associations are anything linked to a brand memory, like product attributes, feelings, or symbols. Maintaining strong brand equity provides strategic benefits like reduced marketing costs and ability to command a price premium.
Managing Brand Equity
- 1. Managing Brand Equity
- 2. You can download this presentation at: www.studyMarketing.org Visit www.studyMarketing.org for more presentations on Marketing, Strategy, Innovation, and Branding
- 3. Brand equity is a set of brand assets and liabilities linked to a brand
- 4. Elements of Brand Equity: Brand Loyalty Brand Awareness Perceived Quality Brand Associations
- 5. Brand Loyalty Brand loyalty is a measure of the attachment that a customer has to a brand. It reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or in product features.
- 6. Brand Loyalty Pyramid Committed Buyer Likes the Brand - Considers it a Friend Satisfied Buyer With Switching Costs Habitual Buyer - No Reason to Change Indifferent – No Brand Loyalty Switchers / Price Sensitive
- 7. Measuring Brand Loyalty Purchase Behavior Patterns Switching Cost Analysis Satisfaction Measurement
- 8. Strategic Value of Brand Loyalty Reduce marketing cost Trade (channel distribution) leverage Attracting new customers
- 9. Enhancing Brand Loyalty Treat the customer right Stay close to the customer Measure/manage customer satisfaction Create switching cost Provide extras
- 10. Brand Awareness is the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category
- 11. Brand Awareness Hierarchy Top of Mind Brand Recall Brand Recognition Unaware of Brand
- 12. Value of Brand Awareness Anchor to which other associations can be attached Familiarity and liking Signal of substance/commitment Brand to be considered
- 13. How to Achieve Brand Awareness Be different, memorable Involve a slogan or jingle Symbol exposure Publicity Event sponsorship
- 14. The customer's perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives. Perceived quality is a perception by customers. Perceived Quality
- 15. What Influences Perceived Quality of Product ? Performance Features Conformance with specifications Reliability Durability Serviceability Fit and finish
- 16. What Influences Perceived Quality of Service ? Appearance Reliability Competence Responsiveness Empathy
- 17. The Value of Perceived Quality Reason-to-Buy Differentiate/Position A Price Premium Channel Member Interest Brand Extensions
- 18. Brand Association A brand association is anything "linked" in memory to a brand. Thus, McDonald's could be linked to a character such as Ronald McDonald, a consumer segment such as kids, a feeling such as having fun, a product characteristic such as service, or a symbol such as the Golden Arches.
- 19. Some Types of Associations Product Attributes Customer Benefits Relative Price Lifestyle/Personality Celebrity/Person Use/Application
- 20. The Value of Brand Associations Help Process/Retrieve Information Differentiate/Position Reason-to-Buy Create Positive Attitudes/Feelings Basis for Extensions
- 21. Maintaining Associations Be consistent over time Be consistent over elements of the marketing program Manage disasters in order to minimize their damage
- 22. Criteria for Brand Name Selection Be easy to learn and remember Suggest the product class Support a symbol or slogan Suggest desired association without being boring or trivial Not suggest undesired associations Be distinctive Be available and protectable legally
- 23. Source of Reference: David Aaker, Managing Brand Equity : Capitalizing on the Value of A Brand Name , Free Press