Brand Equity
Table of Contents Page
Introduction 3 What is Brand Equity? Role of Brands The Scope of Branding
Theoretical Perspectives 4 Brand Equity Models Brand Asset Valuator Brand Resonance Pyramid Building Brand Equity Measuring Brand Equity Managing Brand Equity
Conclusion 7
References 8
Introduction
What is Brand Equity?
As defined by the American Marketing Association a Brand is the “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors” [1]. Therefore Brand Equity can then be defined as “a set of assets such as name awareness, loyal customers, perceived quality, and associations (i.e.: being “pure” and “it floats”) that are linked to the brand and add (or subtract) value to the product or service being offered” [2] or in short it is “the added value endowed on products & services” [3].
Role of Brands
Brands help consumers identify the manufacturer or service provider easily and as a result it helps simplify decision making and lower search costs [4]. It is also a stand for quality and thereby establishing a competitive advantage in the market. A strong brand will help create barriers for new entrants in to the market by way of establishing brand loyalty, which in turn would result in securing a price premium. Having a strong brand also warrants for legal protection (by way of patents, trademarks, copyrights etc.) [5].
Scope of
Introduction 3 What is Brand Equity? Role of Brands The Scope of Branding
Theoretical Perspectives 4 Brand Equity Models Brand Asset Valuator Brand Resonance Pyramid Building Brand Equity Measuring Brand Equity Managing Brand Equity
Conclusion 7
References 8
Introduction
What is Brand Equity?
As defined by the American Marketing Association a Brand is the “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors” [1]. Therefore Brand Equity can then be defined as “a set of assets such as name awareness, loyal customers, perceived quality, and associations (i.e.: being “pure” and “it floats”) that are linked to the brand and add (or subtract) value to the product or service being offered” [2] or in short it is “the added value endowed on products & services” [3].
Role of Brands
Brands help consumers identify the manufacturer or service provider easily and as a result it helps simplify decision making and lower search costs [4]. It is also a stand for quality and thereby establishing a competitive advantage in the market. A strong brand will help create barriers for new entrants in to the market by way of establishing brand loyalty, which in turn would result in securing a price premium. Having a strong brand also warrants for legal protection (by way of patents, trademarks, copyrights etc.) [5].
Scope of
References: [1], [3], [5] – [7], [9], [11] Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha – Marketing Management; A South Asian Perspective (13th Edition) [2] Aaker, D.A. – Managing Brand Equity; Capitalizing on the Value of a Brand Name [4] Keller, K. L. – Strategic Brand Management [8] Kevin Lane Keller – Brand Planning (eArticle; Published by Shoulder of Giants) [10] Pekka Tuominen, Ph.D (Econ. & Bus. Adm.) – Managing Brand Equity [12], [13] Kevin Lane Keller – Conceptualizing, Measuring, Managing Customer-Based Brand Equity (Journal of Marketing) [14] The IKEA Way – www.ikea.com [14] Elen Lewis – IKEA; A Brand for All the People