Brand Equity

Priyanka IIT Kanpur

Defining Brand Equity

Brand equity is the added value endowed on products and services.

Customer Based Brand Equity

Customer-based approaches view it from the perspective of the consumer and recognize that the power of a brand lies in what customers have seen, read, heard, learned, thought, and felt about the brand over time

Positive customer-based equity Consumers react more favourably to a product

Negative customer-based equity Customers react less favourably to marketing activity

Brand Equity Promise

It is the marketer’s vision of what the brand must be and do for consumers

The company has consistently maintained the brand’s key promise of health over years and yet introduced several variants

Brand Equity

Models

BRANDASSET VALUATOR

Advertising agency Young and Rubicam (Y&R) developed this model of brand equity. Its four key components are : • Energized Differentiation • Relevance • Esteem • Knowledge

BRANDZ

Marketing research consultants Millward Brown and WPP developed this model. According to this brand equity follows a series of steps: • Presence • Relevance • Performance • Advantage • Bonding

Strong relationships

Weak relationships

BRAND RESONANCE MODEL

Creating significant brand equity requires reaching the top of the brand pyramid • Brand salience • Brand performance • Brand imagery • Brand judgements • Brand feelings • Brand resonance

Recap

• Defining Brand Equity • Customer-based Brand Equity • Brand promise • Brand Equity Models