Managing
Brand Equity
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Brand equity is
a set of brand assets and
liabilities linked to a brand
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Elements of Brand Equity:
Brand Loyalty
Brand Awareness
Perceived Quality
Brand Associations
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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.
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Brand Loyalty Pyramid
Committed Buyer
Likes the Brand - Considers it a Friend
Satisfied Buyer With Switching Costs
Habitual Buyer - No Reason to Change
Switchers / Price Sensitive
Indifferent – No Brand Loyalty
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Measuring Brand Loyalty
• Purchase Behavior Patterns
• Switching Cost Analysis
• Satisfaction Measurement
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Strategic Value of Brand Loyalty
• Reduce marketing cost
• Trade (channel distribution) leverage
• Attracting new customers
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Enhancing
Brand Loyalty
• Treat the customer right
• Stay close to the customer
• Measure/manage customer
satisfaction
• Create switching cost
• Provide extras
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Brand Awareness is
the ability of a potential
buyer to recognize or recall
that a brand is a member of
a certain product category
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Brand Awareness Hierarchy
Top of Mind
Brand Recall
Brand Recognition
Unaware of Brand
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Value of Brand Awareness
• Anchor to which other associations can be
attached
• Familiarity and liking
• Signal of substance/commitment
• Brand to be considered
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How to Achieve
Brand Awareness
Be different, memorable
Involve a slogan or jingle
Symbol exposure
Publicity
Event sponsorship
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Perceived Quality
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.
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What
Influences
Perceived
Quality of
Product?
• Performance
• Features
• Conformance with
specifications
• Reliability
• Durability
• Serviceability
• Fit and finish
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Appearance
Reliability
Competence
Responsiveness
Empathy
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What
Influences
Perceived
Quality of
Service?
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The Value of Perceived Quality
• Reason-to-Buy
• Differentiate/Position
• A Price Premium
• Channel Member Interest
• Brand Extensions
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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.
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Some Types of
Associations
•
•
•
•
•
•
Product Attributes
Customer Benefits
Relative Price
Lifestyle/Personality
Celebrity/Person
Use/Application
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The Value of Brand
Associations
• Help Process/Retrieve
Information
• Differentiate/Position
• Reason-to-Buy
• Create Positive
Attitudes/Feelings
• Basis for Extensions
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Maintaining
Associations
• Be consistent over time
• Be consistent over
elements of the marketing
program
• Manage disasters in order
to minimize their damage
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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
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Source of Reference:
David Aaker, Managing Brand Equity : Capitalizing on
the Value of A Brand Name, Free Press.
You can obtain this excellent book at this link: http://www.amazon.com/Managing-Brand-EquityDavid-Aaker/dp/0029001013/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1219802121&sr=1-1
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