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Brand Equity

 What Is Brand Equity?



Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability. Mass marketing campaigns also help to create brand equity.

In marketing, brand equity is the level of sway a brand name has in the minds of consumers, and the value of having a brand that is identifiable and well thought of. Organizations establish brand equity by creating positive experiences that entice consumers to continue purchasing from them over competitors who make similar products. This is done by generating awareness through campaigns that speak to target-consumer values, delivering on promises and qualifications when consumers use the product, and loyalty and retention efforts.

 

By presenting consumers loyalty incentives including factors that may be exchanged for discounts or a free product on their birthday, they may be much more likely to continue to purchase out of your brand in place of moving on to a competitor. Awareness and enjoyment are the two key tenets of logo fairness:

  • Brand Awareness: Can consumers easily identify your brand? Messaging and imagery surrounding your brand should be cohesive so consumers can always identify it, even for a new product. What kinds of values do consumers associate with the brand?  Perhaps they think of sustainability, quality, or family-friendly qualities.
  • Brand Experience: How have first-hand experiences with your brand gone? This could mean that the product performed the way it was supposed to, that encounters with brand representatives and customer service teams have been accommodating and helpful, and that loyalty programs have been worthwhile.

 

 

 

Importance of Brand Equity?

 

A key benefit of organizing fine emblem equity is the blessings it can have on ROI. Organizations that leverage the power of branding frequently earn extra cash than the competition, whilst spending much less - whether or not on manufacturing, marketing, or somewhere else.  For example, nice brand equity enables manufacturers to charge price rates. When clients trust in the values placed forth through a logo and the excellence of their merchandise, they will pay higher prices to purchase from that brand. Additionally, ought to a company need to add new product offerings, marketing them beneath the identical umbrella emblem will assist the new product take off quicker, as accepted as true with has already been mounted. This is particularly critical as a rising variety of consumers, roughly 80%, now refuse to do commercial enterprise with or purchase from an emblem that they don’t trust, and nearly 90% intend to disengage from a brand that breaches their beliefs.

Marketing researchers have concluded that brands are the crown jewels of a company. Brand equity provides significant value to companies:

  • Companies can charge a premium for products with lots of positive brands equity (think of designer brands).
  • Positive brand equity can be transferred to a different product line, which in turn increases sales and revenues for the company.
  • Positive brand equity increases market share, as the brand is widely known, recognized, and preferred by consumers.
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Keller’s Brand Equity Model

 

Keller's Brand Equity Model (also known as the Customer-Based Brand Equity (CBBE) Model) was first developed by marketing professor, Kevin Lane Keller, in his widely-used textbook, "Strategic Brand Management." [1]

The concept behind the Brand Equity Model is simple: in order to build a strong brand, you must shape how customers think and feel about your product. You have to build the right type of experiences around your brand so that customers have specific, positive thoughts, feelings, beliefs, opinions, and perceptions about it.

When you have strong brand equity, your customers will buy more from you, they'll recommend you to other people, they're more loyal, and you're less likely to lose them to competitors.

The model, depicted as a pyramid in figure 1, below, illustrates the four steps that you need to follow to build strong brand equity.

Figure 1 – Keller's Brand Equity Model

Brand Equity


KELLER, KEVIN, STRATEGIC BRAND MANAGEMENT: GLOBAL EDITION, 4th, © 1901. Reprinted by permission of Pearson Education, Inc., New York, New York.

The four steps of the pyramid represent four fundamental questions that your customers will ask – often subconsciously – about your brand.

These four steps also contain six building blocks that must be in place for you to reach the top of the pyramid, and to develop a successful brand.

How to Apply Keller's Brand Equity Model

Let's look at each step of the model in more detail, and discuss how you can use it to strengthen your brand.

Step 1: Brand Identity – Who Are You?

First, your goal is to create "brand salience," or awareness – in other words, you need to make sure that your brand stands out, and that customers recognize it and are aware of it.

You're not just creating brand identity and awareness here; you're also trying to ensure that brand perceptions are "correct" at key stages of the buying process.

Start by getting to know who your customers are. Research your market to gain a thorough understanding of how your customers see your brand and explore whether there are different market segments with different needs and different relationships with your brand.

Then, identify how your customers narrow down their choices and decide between your brand and those of your competitors. Ask yourself:

·         What decision-making processes do your customers go through when they choose your product?

·         How are they classifying your product or brand?

·         How well does your brand stand out from other, similar ones?

You are able to sell your product because it satisfies a particular set of your customers' needs; this is your unique selling proposition or USP. You should already be familiar with these needs, but it's important to communicate to your customers how your brand fulfills these. Do they fully understand these USPs when they're making their buying decisions?

By the end of this step, you should understand whether your clients perceive your brand as you want them to, or whether there are specific perceptual problems that you need to address. Do you need to adjust your product or service, or adjust the way that you communicate your brand messages?

Step 2: Brand Meaning – What Are You?

Identify and communicate what your brand means to your customers, and what it stands for. Do this by considering your brand in terms of "performance" and "imagery":

·         Performance defines how well your product meets your customers' needs. According to Keller's model, the performance consists of five categories: primary characteristics and features; product reliability, durability, and serviceability; service effectiveness, efficiency, and empathy; style and design; and price.

·         Imagery refers to how well your brand meets your customers' needs on a social and psychological level. Your brand can meet these needs directly, from a customer's own experiences with a product; or indirectly, with targeted marketing, or by word of mouth.

The experiences that your customers have with your brand come as a direct result of your product's performance. Your product must meet, and, ideally, exceed their expectations if you want to build loyalty.

Use the Critical to Quality Tree and Kano Model Analysis models to identify your customers' needs, and then explore how you can translate these needs into a high-quality product.

Next, think carefully about the type of experience that you want your customers to have with your product. Take both performance and imagery into account, and create a "brand personality." Again, identify any gaps between where you are now and where you want to be, and look at how you can bridge these.

A good example of "brand meaning" inaction is that of outdoor clothing and equipment company, Patagonia®, which makes high-quality products from recycled materials.

Patagonia’s brand performance demonstrates its reliability and durability. People know that their products are well designed and stylish and that they won't let them down. Patagonia's brand imagery is enhanced by its commitment to several environmental programs and social causes; and its strong "reduce, reuse, recycle" values, which makes customers feel good about purchasing its products.

You can Download Reference E-books for free from PDF STALL

 

Reference:

1.   https://www.investopedia.com/terms/b/brandequity.asp#:~:text=Brand%20equity%20refers%20to%20a,superior%20in%20quality%20and%20reliability.

2.   https://www.marketingevolution.com/marketing-essentials/what-is-brand-equity-marketing-evolution

3.   https://corporatefinanceinstitute.com/resources/knowledge/other/brand-equity/

4.   https://www.mindtools.com/pages/article/keller-brand-equity-model.htm

 

 

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