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MODULE 1- BRAND EQUITY

AND BRAND EQUITY MODELS

MBA V SEM, ITM-Bangalore

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BRANDING

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AGENDA

BD

C

B

C

B e

BrandDefinition, Scope, Importance of Branding

Case- Muji

Brand Equity Experts View

Customer based Brand Equity

Brand Equity Model Kellers Model

Elliot and Percys Brand Equity Model

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BRAND- DEFINITION

A A

B

AMA defines Brand as name, term, sign, symbolor design or combination of them, intended toidentify and differentiate the goods or services

of one seller to that of another. Branding involves creating mental structures and

helping consumers organize their knowledgeabout products and services in a way that

clarifies their decision making. Marketers can apply branding to physical

product, store, services, people etc..

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BRANDINGAS PER THE EXPERTS

Ac Al

S

S

According to Al Ries and Laura Ries, Brandingpresells the product or service to the user

Scott Bedbury admitted that consumers dont

truly believe theres a huge difference betweenproducts, which means that: Brands have to establish emotional ties with their

customers

Symbolic meaning becomes the instrument fordifferentiation and for forging the emotional bondwith the brand

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BRAND EQUITY- EXPERTS VIEW

Brand equity can be thought of as the additionalcash flow achieved by associating a brand withthe underlying product or service ( Alexander

Biel) Brand equity is the measurable financial value in

transactions that accrues to a product or servicefrom successful programs and activities related

to branding( J.Walker Smith) In simple words, brand equity is the added value

endowed on products and services

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BRAND EQUITY- EXPERTS VIEW

Understanding brand equity must come fromthe customers point of view as it is thecustomers sense of added value that will lead

to preference for a particular brand Financial consequences of brand equity will

follow from the consumers perception ofadded value.

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CUSTOMER BASED BRAND EQUITY

The CBBE model approaches brand equityfrom the perspective of the consumer

The basic premise of the CBBE model is thatthe power of a brand lies in what resides inthe minds of customers

From the perspective of the CBBE model,

brand knowledge is the key to creating brandequity

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BRAND KNOWLEDGEAWARENESS AND IMAGE

Brand Awareness Brand awareness is related to the consumers ability

to identify the brand under different conditions

Brand awareness consists of brand recognition andbrand recall performance

Brand Image The brand image can be defined as perceptions about

a brand as reflected by the brand associations heldin consumer memory.

A positive brand image is created by marketingprograms that link strong, favorable and uniqueassociations to the brand in memory

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CONSUMER PERSPECTIVE- BRAND

EQUITY

BRANDAWARENESS

BRANDSALIENCE

BRANDATTITUDE

BRANDLOYALTY

CONSUMER PERSPECTIVE OF BRAND EQUITY AS PER

ELLIOT AND PERCY

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BRAND ATTITUDE

Brand associations in memory must be strong,positive and unique to the brand in order tobuild a brand attitude that leads to strong

brand equity It reflects a persons knowledge and

assumptions about a brand and theiremotional associations with it

Brand loyalty is a function of brand equitywhen it results from genuine preference forit.

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BRAND LOYALTY MODEL

FRUSTRATED LOYAL

SWITCHABLE VULNERABLE

Perceived

risk in

switching

SATISFACTIONBRAND LOYALTY MODEL

PERCY AND ELLIOTLow

Low

High

High

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SUMMARIZED BRAND EQUITY MODEL

BRAND ATTITUDE

EMOTIONALASSOCIATION

FINANCIALVALUEBRAND LOYALTY

BRANDAWARENESS

ELLIOT AND PERCY

MODEL OF BE

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BRAND EQUITY MODEL (BEM)

Resonance

ents

eelin s

Perfor ance

I a ery

Salience

BRAND EQUITY PYRAMID BY KELLER

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BRANDPERFORMANCE AND IMAGERY

The tendency of the brand to be thought of in abuying situation is known as Brand Salience.A highly salient brand is one that has both depth

and breadth of brand awareness Brand Performance relates to the ways in which

the product or service attempts to meetcustomers more functional needs

Brand Imagery refers to more intangibleaspects of the brand and includes the ways inwhich brand attempts to meet customerspsychological or social needs

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CUSTOMERJUDGMENTS AND FEELINGS

Customer Judgments are customers personalopinions and evaluations about the brand.Customers generally make 4 types of judgments:

Brand Quality Brand Credibility

Brand Consideration

Brand Superiority

Customer Feelingsare customers emotionalresponses and reactions about the brand

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BRAND RESONANCE

Brand Resonance refers to the ultimaterelationship and the extent to which customersfeel that they are in sync with the brand.

Brand resonance can be broken down in followingcategories: Behavioral loyalty

Attitudinal attachment

Sense of community Active engagement

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