Creating Brand Equity

• Brand


  A 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
• Branding


  Endowing products and services with the power of a brand
• Brand equity


  The added value endowed on products and services
• Customer-based brand equity

  The differential effect brand knowledge has on consumer response to the marketing of that brand
• Brand knowledge


  All the thoughts, feelings, images, experiences, and beliefs associated with the brand
• Brand promise


  The marketer's vision of what the brand must be and do for consumers
• Four key components—or pillars—of brand equity, according to BAV

  • Energized differentiation
  • Relevance
  • Esteem
  • Knowledge
• Energized differentiation


  Measures the degree to which a brand is seen as different from others, and its perceived momentum and leadership
• Relevance


  Measures the appropriateness and breadth of a brand's appeal
• Esteem


  Measures perceptions of quality and loyalty, or how well the brand is regarded and respected
• Knowledge


  Measures how aware and familiar consumers are with the brand
• Brand strength


  Energized differentiation and relevance combine to determine a leading indicator that predicts future growth and value
• Brand stature


  Esteem and knowledge together create a "report card" on past performance and a current indicator of current value
• BrandDynamics Pyramid shows the number of consumers who have reached each level

  • Presence
  • Relevance
  • Performance
  • Advantage
  • Bonding
• Presence


  Active familiarity based on past trial, saliency, or knowledge of brand promise
• Relevance


  Relevance to consumer's needs, in the right price range or in the consideration set
• Performance

  Belief that it delivers acceptable product performance and is on the consumer's short-list
• Advantage


  Belief that the brand has an emotional or rational advantage over other brands in the category
• Bonding


  Rational and emotional attachments to the brand to the exclusion of most other brands
• Six "brand building blocks"

  • Brand salience
  • Brand performance
  • Brand imagery
  • Brand judgments
  • Brand feelings
  • Brand resonance
• Brand salience


  How often and how easily customers think of the brand under various purchase or consumption situations
• Brand performance


  How well the product or service meets customers' functional needs
• Brand imagery


  The extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs
• Brand judgments


  Customers' own personal opinions and evaluations
• Brand feelings

  Customers' emotional responses and reactions with respect to the brand
• Brand resonance


  The relationship customers have with the brand and the extent to which they feel they're "in sync" with it
• Six criteria for choosing brand elements

  • Memorable
  • Meaningful
  • Likable
  • Transferable
  • Adaptable
  • Protectable
• Memorable


  How easily do consumers recall and recognize the brand element, and when—at both purchase and consumption?
• Meaningful


  Is the brand element credible?
• Likable


  How aesthetically appealing is the brand element?
• Transferable


  Can the brand element introduce new products in the same or different categories?
• Adaptable


  How adaptable and updatable is the brand element?
• Protectable

  How legally protectable is the brand element?
• Brand contact


  Any information-bearing experience, whether positive or negative, a customer or prospect has with the brand, its product category, or its market
• Integrated marketing


  Mixing and matching these marketing activities to maximize their individual and collective effects
• Internal branding


  Activities and processes that help inform and inspire employees about brands
• Brand community


  A specialized community of consumers and employees whose identification and activities focus around the brand
• Brand audit


  A consumer-focused series of procedures to assess the health of the brand, uncover its sources of brand equity, and suggest ways to improve and leverage its equity
• Brand-tracking studies


  Collect quantitative data from consumers over time to provide consistent, baseline information about how brands and marketing programs are performing
• Brand valuation


  The job of estimating the total financial value of the brand