Brand Equity

Definition

It is the added value endowed on products & services. It may be reflected in the way consumers think, feel & act with respect to the brand, as well as in the prices, market share & profitability the brand commands.

Customer Based Brand equityCBBE

What makes a brand strong?How do u build a strong brand?These questions are dealt by CBBE model.This model approaches from the perspective of consumers- both individual or an organization.

Basic premise of the CBBE model is that the power of abrand lies in what the customers have learned, felt, seen & heard about the brand as a result of their experiences over time.

ORThe power of a brand lies in what resides in the minds of customers.

Brand is said to have a positive CBBE when consumers react more favorably to a product & the way it is marketed.

Thus with a positive CBBE, this may results in consumers being more accepting of a new brand extension., less sensitive to price increases.

On the contrary a brand is said to have a negative CBBE if consumers react less favorably to marketing activity.

Brand equity as a bridgeCustomer knowledge drives the difference that manifests themselves in terms of brand equity.

Brands as a reflection of the past.Amount spend each year on marketing & manufacturing are not expenses but investments

Brands as direction for the future.

The true value &future prospects of a brand rest with consumers & their knowledge about the brand.

BUILDING BRAND

MAKING A BRAND STRONG

Brand KnowledgeBrand AwarenessBrand Image

Brand Awareness

Consumer’s ability to identify the brand under different conditions.

Brand Image

Brand Image is Consumer’s perception about a brand as reflection by brand associations held on consumer’s memory

Mercedes BenzQualityComfortClass

GoogleSearch EngineUser FriendlyCool

What is Brand ?

IS IT?

“A brand is a product, service, or concept that is publicly distinguished

from other products, services, or concepts so that it can be easily

communicated and usually marketed”.

“ A brand is an identifiable entity that makes specific promises of value”.

What About This?

What is Brand Equity ?

Brand Equity is the sum total of all the different values

people attach to the brand.

BUILDING

The Four Steps of BrandBuilding

These four steps represent a set of fundamental questions that customers invariably

ask about brands, implicitly if not explicitly:Q1) Who are you? (brand identity)Q2)What are you? (brand meaning)

Q3)What about you? What do I think or feel about you? (brand

responses) Q4)What about you and me? What

kind of association and how much of a con-

nection would I like to have with you? (brand relationships)

Brand building blocks

SaliencePerformanceImageryJudgementFeelingsResonance

Brand building blocksResonance

Judgment Feelings

Performance Imagery

Salience

4. Relationship

What about you & me?

3. Response

What about you?

2. Meaning

What are you?

Identity

Who are you?

Building blocks can have hierarchies Brand awareness: It is typically important to first establish category identification in some way before considering strategies to expand breadth via needs satisfied or benefits offered

Brand performance: Often necessary to first link primary characteristics & related features before attempting to link additional, more peripheral associations

Brand imagery: Often begins with fairly concrete initial articulation of user & user imagery that, over time, leads to broader, more abstract brand associations of personality, value, history, heritage, & experience

Brand judgment: Usually begin with positive quality & credibility perceptions that can lead to brand consideration & then perhaps assessment of brand superiority

Brand feelings: Usually start with either experiential ones (i.e, warmth, fun, excitement) or inward ones (i.e., security, social approval, self-respect)

Brand resonance: Behavioural loyalty is a starting point but attitudinal attachment or a sense of community is almost always needed for active engagement to occur

CBBE Pyramid for Amazon (Selected Key Dimensions Loyalty

AttachmentCommunity

Engagement

Good value Smart Shopper Credibility Convenience For Everyone Vast Selection

Internet Pioneer Low Prices Customized Information

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