brand equity3

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Elements of Brand Equity:Elements of Brand Equity:

B rand LoyaltyB rand Awareness

Perceived QualityB rand Associations


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Brand LoyaltyBrand LoyaltyB rand loyalty is a measure of theattachment that a customer has to abrand.

It reflects how likely a customer will be toswitch to another brand, especially when that

brand makes a change, either in price or inproduct features.


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Brand Loyalty PyramidBrand Loyalty PyramidC ommitted B uyer

Likes the B rand - C onsiders it a Friend

Satisfied B uyer With Switching C osts

Habitual B uyer - No Reason to C hange

Indifferent No B rand Loyalty

Switchers / Price Sensitive


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M easuring B rand Loyalty

Purchase B ehavior Patterns

Switching C ost Analysis

Satisfaction M easurement


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Strategic Value of B rand Loyalty

Reduce marketing costTrade (channel distribution) leverage

Attracting new customers


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E nhancingB rand LoyaltyTreat the customer rightStay close to the customer M easure/manage customer satisfactionC reate switching costProvide extras


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Brand Awareness isBrand Awareness isthe ability of a potential

buyer to recognize or recallthat a brand is a member of a certain product category


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B rand Awareness Hierarchy

Top of M indB rand Recall

B rand RecognitionUnaware of B rand


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Value of B rand Awareness

Anchor to which other associations can beattached

Familiarity and likingSignal of substance/commitmentB rand to be considered


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How to Achieve

B rand AwarenessB e different, memorable

Involve a slogan or jingle

Symbol exposure

PublicityE vent sponsorship


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The customer's perception of the overallquality or superiority of a product or service

with respect to its intended purpose, relative to

alternatives. Perceived quality is a perceptionby customers.

Perceived Quality


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What

InfluencesPerceivedQuality of ProductProduct ?

Performance

FeaturesC onformance withspecifications

ReliabilityDurability

Serviceability

Fit and finish


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The Value of Perceived Quality

Reason-to- B uy

Differentiate/Position

A Price PremiumC hannel M ember InterestB rand E xtensions


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Brand AssociationBrand Association A brand association is anything

"linked" in memory to a brand.Thus, M cDonald's could be linked to acharacter such as Ronald M cDonald, aconsumer segment such as kids, a feelingsuch as having fun, a product characteristicsuch as service, or a symbol such as theGolden Arches.


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Some Types of Associations

Product AttributesC ustomer B enefitsRelative PriceLifestyle/PersonalityC elebrity/PersonUse/Application


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M aintaining Associations

B e consistent over timeB e consistent over elements of the marketing

programM anage disasters in order to minimize their damage


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Criteria for Criteria for

Brand NameS

electionBrand NameS

electionB e easy to learn and remember

Suggest the product class

Support a symbol or sloganSuggest desired association withoutbeing boring or trivial

Not suggest undesired associationsB e distinctiveB e available and protectable legally

brand equity3

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