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Understanding Brand Equity Strategies

This document discusses branding and brand equity. It defines branding as using names, symbols, or designs to identify and differentiate products from competitors. Brand equity is the added value these branding elements provide. The document then examines customer-based brand equity and how brand knowledge influences consumer responses. It presents two models - the BRANDZ model which looks at brand presence, relevance, performance, and advantage, and the Brand Resonance Model which analyzes brand salience, performance, imagery, judgments, and feelings. The document concludes by discussing important brand elements and various branding strategies companies can employ.

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7 views15 pages

Understanding Brand Equity Strategies

This document discusses branding and brand equity. It defines branding as using names, symbols, or designs to identify and differentiate products from competitors. Brand equity is the added value these branding elements provide. The document then examines customer-based brand equity and how brand knowledge influences consumer responses. It presents two models - the BRANDZ model which looks at brand presence, relevance, performance, and advantage, and the Brand Resonance Model which analyzes brand salience, performance, imagery, judgments, and feelings. The document concludes by discussing important brand elements and various branding strategies companies can employ.

Uploaded by

Yousuf
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

CHAPTER 10

CRE ATI N G BRAND EQ UI T Y


BRAND EQUITY.
Brand is termed as a name, sign, symbol, or design, or a combination of them,
intended to identify the goods or services of seller and to differentiate them
from those of competitors. Brand helps to assign…
• Responsibility for performance.
• Consumers product evaluations.
• Simplify product handling.
• Organize inventory and accounting records.
• Can be protected.
SCOPE OF BRANDING
Branding is about creating differences between products. Brand equity is the
added value endowed on products and services. It maybe reflected in the way
consumers think, feel, and acts with respect to the brand (as well as in the
prices, market share and profitability the brand commands).
CUSTOMER BASED BRAND EQUITY

It is the differential effect brand knowledge has on consumers response to the


marketing of that brand.
Positive CBBE = favorable reaction
Negative CBBE = Unfavorable reaction.

3 key ingredients of CBBBE


• Arises from differences in consumer response.
• Differences are result of consumers brand knowledge. (strong, favorable,
unique)
• It is reflected in perceptions, preferences, and behavior.
BRAND EQUITY MODEL

BRANDZ Model

Brand Resonance Model


BRANDZ MODEL

Presence: active familiarity based on trial.

Relevance: consumer’s needs, right price.

Performance: acceptable product performance.

Advantage: emotional and rational advantage over other brand.

Bonding: Rational and emotional attachment.


BRAND RESONANCE
MODEL
Brand Salience: How often and how easily customers think about the
brand.

Brand Performance: how well the brand fulfills functional needs.

Brand Imagery: extrinsic properties (psychological or social needs).

Brand Judgments: customers own personal opinions and evaluations.

Brand feelings: emotional response.

Brand resonance: relationship with the brand.


BRAND ELEMENT S:

Brand elements are devices, which can be trademarked, that identity and
differentiate the brand.

E.G: Nike has distinctive “LOGO”, “SLOGAN”.

Most strong brands employ multiple brand elements.


BRAND ELEMENT CHOICE CRITERIA

Memorable, Meaningful, Likeable, transferable, adaptable, and protectable.

First 3 elements serves as “Brand building”, whereas the last 3 helps to


preserve “Brand Equity”

Memorable: Recall and Recognize. (LUX, LG)

Meaningful: credible, corresponding category (Fair and Lovely).

Likable: Aesthetically appealing (FoodPanda)


Transferable: new product category, across geographic boundaries.
([Link])

Adaptable: How adaptable and updatable is the brand element?

Protectable: legality of the name.


BRANDING DECISIONS:

• It can develop new brand elements for the new products.


• It can apply some of its existing brand elements.
• It can use a combination of new and existing brand elements.
Brand Extension: firm uses an established brand name to introduce a new
product.
Sub-brand: combination of new brand with existing brand.

Parent brand: existing brand that introduces new brand or brand extension.

Master/Family Brand: parent brand associated with multiple products.

Line extension: same product category( Forms, size, flavors, package size.)

Category extension: different product category.


Alternative Branding Strategies:

Individual/separate family brand names: (ariel, tide)

Corporate umbrella brand name: LG, Samsung.

Sub-brand name: combine two or more of the corporate brand, family


brand, or individual brand names. (Honda, Sony).

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