Brand Equity
What is Brand Equity?
Continuous management and work is needed to create a successful brand. It needs to be constantly given attention. One will need a strong brand in order to succeed in marketing (Aaker, 1991). Everything else relies on how success how the brand was created. This represents loss of addition of value to Brand equity. Added value shows the ‘gain’ following what has been done to create as strong brand. (Harvard Business School Press, 2012)The difference you see after making investments and work input in the market place is brand equity. Management must be continuous.
The first is: a set of brand assets and liabilities linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service to a firm or to that firm’s customers, ‘Let say, a brand and its colour. (Dibb, et al, 1997)The gold colour for Kodak is a fine example of how something can be an asset. Its meaning is its ability to change how people think of it. It is good then to note that brand equity can have a positive and negative side. So it is crucial to learn when it is that brand equity is bad for the brand. Brandy equity has two sources. These are whether the customers are aware of the brand and what they know about the brand. To associate with a brand is anything the customer can relate to the brand. Such would be such things as brand personality and users. (De Chernatony et al, 1992)To be associated or seen with quality is special type thing to be associated with. Once you gain brand equity, you can then gain brand loyalty. To make strong brands there are two processes you have to follow. The first is to build relevant differentiated positions in what the customer perceives with particular associations and developing of awareness.
Measuring Brand Equity
It is preferable to measure brand equity directly. To measure the two components of brand equity a conjoint based method is used by QSA. The first is where customers will rather a certain brand other others that have the same features and price. (Dibb, et al, 1997) The second is the price premium the brand has over other brands with the same features. This method gets and quantifies the tradeoffs made between product price and characteristics. (Harvard Business School, 2012)
Conjoint studies are used many times measure the value of brand names and values of various product features.
Tasks are given to various respondents in form of a hypothesis.– different products and services are provided for choice whose price and brand vary.
From the Consumer‘s Perspective
It is customers that determine what generates brand since consumers are the ones who determine what for them generates brand equity and what does not generate brand equity. This is what says the way and the intensity in which diff components determine the brand value.
Mathematics at the Service of Marketing
From the studies it can be said that. To create a better brand image, try having a price. Higher prices have higher brand image.
One can also improve brand image by new ideas and a great variety of products. Creating a good brand value can also be attained through achieving a good distribution network in so many dimensions.
A positive impact is always seen in the creation of brand values from greater advertising activity. (Bennett, 1988)It brings about better equity through better brand knowledge and image and improves how the customers perceive the quality contributing to brand loyalty and purchases.
On the negative side, when promotions have it frequently reducing the prices of things, people will think it is of less quality and will therefore have a negative image on the brand image and brand loyalty. (Wolfe, 1993)
Brand building implications for customer based brand equity.
The strongest brands perform best in all the brand-building blocks with the CBBE model. For the most valuable building block to resonate, they must be synchronized with the consumer’s desires, wants and needs. (De Chernatony et al, 1992) The strongest are those that customers are so attached they evangelize the brand and tell others of their experience with it. (Dacin et al, 1994)When a company has achieved this resonance and pull for their customers, they benefit very much from such things as efficient and effective marketing programs and much greater price premiums. Successful market research initiatives and processing of brand building efforts can be done using the CBBE model.
The Brand Construct
This has had different approaches when it comes to defining it emanating from the different perspective of definitions from consumers and brand owners. The definition of their purpose and characteristics (Aaker, 1991). Definitions for brands have been made and many criticized for being product oriented. Coming up with the perfect description should include such things as attributes and market descriptions.
Brand responses
This is what consumers think or make of certain brand. Customer’s personal opinions and judgement of how good or bad they are to come up with brand judgments. From the various type of brand judgement, four main ones have been created.
One is brand credibility. This is judgement by the customer with respect to the company and organisation behind the brand. This is in three dimensions that include expertise, trustworthiness and likability.
Second is Brand Quality.
Third is brand consideration where it is asked whether the consumer will actually buy or use this brand. As in how much it means to the customer. They will often want to figure whether they have a personal attachment to the brand.
Finally is brand superiority where customers view as certain brand to be unique and better with many more advantages.
Other brand responses include brand feelings which are how the consumer responds emotionally with respect to the brand. It does not necessarily have to be positive. They include: fun, excitement, warmth, self-respect, security, approval by the society.
Key Criteria for brand marketing
For something to be linked with a brand, a there must be several associations related to the imagery performance of a brand.
No matter the type it takes to be linked with those that make up the brand image and meaning can be put into three main points or dimensions.
• Strength- this is how intense the brand is identified with a brand association
• Favourability- this is value of the quality of being significant to customers.
• Uniqueness- this is the distinctive identification with the brand association.
A perfect blend of the three produces remarkably positive results as well as intense and brand loyalty that is far from inactive. For a brand to have a good equity, it must have the three in (Keller, 1993) that order. For no matter how unique a brand might be it is nothing without uniqueness and no matter how favourable it is it is nothing without strength. It therefore must follow that order. This is normally very difficult but essential for CBBE. Fine examples are Coke, Nike and Disney.
A Model for Strengthening Brand Equity
This model starts with the senior management team developing a brand vision which they refine over time. Here, idea created at earlier stages are banked on continuously by manages in a process that is quite interactive. It is very good as it allows reformulation of ideas because of its interactive nature.
In order have successful brand planning, there should be a multidisciplinary management (Aaker, 1991) team and is encouraged by a holistic, company-wide perspective. The emphasis moves from strategy to tactics to implementation as the model is worked on by the management team. Feed back is provided by performance has been made to happen from which further enhancements can be planned to sustain the brand once one has been developed. Block in this model are each considered. (Wolfe, 1993)
There are several cases against branding (Keller, 1993)
• Donors are not up to supporting branding so much because it is a long term investment.
• Competition between social concerns and commercial firms in marketing is not in a level playing field since they play with donor money. (Bennett, 1988)
• To brand a product or a service is a very expensive undertaking. The costs are borne by the consumer or donor.
• A question is left on what is to happen when donor support halted when social products over power commercial firms out of the market and revenues are not enough to keep the product in market. (Dacin et al, 1994)
It can prove as disadvantage when a brand does not have sustained track record for a long time. This is especially bad for competition. A brand should also seek to maintain a high level of production. Contrary to this will result in negative competition as well. It should also establish a hierarchy so as to know where they stand as brand again on the contrary is bad for brand equity. Poor method system of distribution should be looked into as well.
But generally brand equity has very little disadvantages and more advantages such as image distribution and physical design.
How to maintain brand equity
It is good to note that it is not just established companies that can gain from brand equity. Start ups can do it too if they have it in mind from the onset of their business. With this they can attain profitability. They require to be supported. They will be on the right track if they strive to cultivate brand values. They stand at a high advantage because they can build and leverage early stage brand DNA and they can create something unique. Once you have these brand values you will be certain of supportive consumers that will guarantee your company some form of respect.
Once this has been established the fledgling will stand out from competitors which is crucial for getting that elusive market share with so many customers that keep changing their minds.
What should also be considered is that these external features have great value for the internal workings and structures as well.
The same, the internal working are the mirror into the brand positioning and it is what prevents the business from becoming diluted and losing its brand loyalty. You can maintain this brand equity because this allows you to create brand advocate among staff.
In conclusion, it should be noted that to manage a brand a general plan which is holistic is required to make it last. The brand message should be able to be carried through using the function of the marketing mix. Remember such things as reduction of priced do not work well. They should be managed as a long term assets.
Bibliography
Aaker, D. , 1991. ‘Managing Brand Equity, New York, The Free Press.
Bennett, P.D., 1988, Dictionary of Marketing Terms, The American Marketing Association,
Chicago, p. 18.
Dacin, P.A. and Smith, D.C., 1994. “The effect of brand portfolio characteristics on consumer evaluations of brand extensions”. Journal of Marketing Research, 31, p. 229-42.
De Chernatony, L. and McDonald, M., 1992, Creating Powerful Brands, Butterworth Heinemann, Oxford Press.
Dibb, S., Simkin, L., Pride, W.M. and Ferrell, O.C., (1997). Marketing: Concepts and Strategies, Boston, MA, Houghton Mifflin, p. 264.
Harvard Business, 2012. ‘Competing For the Future’, Harvard Business School Press, Boston.
Keller, K. L., 1993. ‘Conceptualizing, Measuring and Managing Customer-based Brand Equity’. Journal of Marketing, 57, p. 1-22.
Wolfe, A., 1993. Profit from Strategic Marketing: How to Succeed in Business Markets. London, Pitman Publishing.
