15
The value of brand equity activities on future performance
is
not easy to demonstrate.
The
first step
in
identifying
the value of brand equity is to understand what it is, what
really contributes to the value of a brand.
2.3.2.
Brand Equity
Reduced Marketi ng
Costs
Trade Leverage
Brand Loyalty
Brand Awareness
Att racting New
customers:
-
Creat e Awareness
-
Reassurance
Time to respond to
competiti ve t hreats
Anchor to which other
associ ations can be
attached
Famili arit y - Liking
Signal of Substance or
Commitment
Brand to be Considered
Provides value to
customer by enhanci ng
customer’s:
-
Interpretation /
Processing of
Information
-
Confi dence i n the
Purchase Deci sion
-
Use Satisfaction
BRAND
EQUITY
Perceived Quality
Brand
Associations
Reason-to-buy
Differenti ate or posi tion
Pri ce
Channel Member Int erest
Extensions
Help process /
Retri eve
information
Differenti ate / Posit ion
Reason-to-buy
Create Positive Atti tude /
Feelings
Provides Value to Fi rm
by Enhancing:
-
Effici ency and
Effecti veness of
Market ing Programs
-
Brand Loyal ty
-
Prices / Margins
-
Brand Extensions
-
Trade Leverage
-
Competit ive Advantage
Extensions
Figure 2.2 Schematic of Brand Equity
Brand equity 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 and/or to the firms’ customers.
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