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Strategic Brand Management

Brand Equity


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Brand equity

The resonance of a name

The difficulty of defining

49 diff studies in US and Europe produces26 different measures (Sattler 1994)


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Financial perspective

Companies can sell for 20:1 of firms earnings

Strong brands = less risk

Greater likelihood of a solid income stream

Higher market share leading to higher price/lower costs and

less price elasticity Better margins higher ROI

More effective distribution

Shelf space

Pulled through the chain by consumers leading to retailerand wholesaler demand

See Fig 5.3.


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Figure 5.3


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Brand awareness

Strong brand awareness reflects

Familiarity

Presence

Commitment

Substance

NB. A person must have the intention to make a branded purchasewithin a product category for awareness to matter


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Brand awareness

Broadly speaking brand awareness can take twoforms

Recognition E.g., FMCG

Recall E.g., Restaurant

NB. The brand must be salient


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Brand attitude

Associations in memory linked to the brand These should be strong, positive and unique for loyalty to

result

Attitudes are a function of objective and subjectiveinterpretations of the brand Objective:

A person identifies attributes which are product or non-productspecific objective characteristics of the brand. These may betranslated into benefits depending on the personal valuesattached by customers to the attributes

Subjective: Perceptions of a brands personality or symbolic meaning

See Fig 5.5, 5.6.


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Figure 5.5


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Figure 5.6


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Figure 5.7


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Figure 5.8


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Brand equity is a central construct in the strategicmanagement of brands. When managing brands it isimportant to acknowledge the difference betweenfunctional and symbolic brands. Many of the

relationships discussed in these slides are shown inFigure 5.9.


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Figure 5.9

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