Brand Equity Class

8/9/2019 Brand Equity Class

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Brand Equity


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Brand/Trademark • Trademark: egal concept• Brand: !arketing concept

• Registration of a brand adds value as itprotects its other inherent assets• Brand pro"le and positioning may vary

over time, but trademark protectionremains the same


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Creating/Designing a

Trademark • Inherently distinctive• Easy to memorize and

pronounce•

Fit the product or imageof the business• ositive connotation


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#$AT %& A TRA'E!AR()

• Any sign, or any combination of signs,

capable of distinguishing the goods orservices of one undertaking from those ofother undertakings, shall be capable ofconstituting a trademark*

• #ords including personal names, letters,numerals, "gurative elements +logos ,combination of colors, sounds, smells, etc

• -isually perceptible. /' or 0' +shape


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De!nition of aBrand

+1 'e"nes the di2erentialfeatures of a product orservice:• Real or %maginary• Rational or %rrational• Tan ible or %ntan ible


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'e"nition of a Brand3ontd***

+/ 3onstitutes an image thatcreates a personale4perience:• 56n• Third party• %maginary


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Brand Identity

• "ind share #cognitive level$•

%eart &hare #Emotionalrelationship$• Buying intention share• &elf share #self'e(pression

and self'design$


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Brand Equity +Aaker

• 7ame A6areness +precondition• Brand oyalty +at the core• 8erceived 9uality +purpose,

alternatives• Brand Associations +security,

con"dence, e4clusivity• 5ther Brand Assets + egal and

institutional bene"ts. Trademark,

markets, distribution channels


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Role of Brands: or the3ompany

%n a highly competitive 6orld

6here manufacturers are losingtheir pricing po6er, branding isseen as a 6ay of cla6ing backsome of the lost in;uence*


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• Real and marketable asset

• $igher pro"t margin +8rice8remium• %ncremental cash ;o6


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• Accelerates speed of cash ;o6• %ncreases bonding and customerloyalty• %ncreased market share• Entry barrier• imits gro6th of competitors


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• E4tends products< life cycle• Allo6s lo6er cost brand e4tensions• 3an be the basis for internationale4pansion•

8rovides legal protection. licensing.franchisin


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But)))

• Brand Building Requires Time a nd !oney.nd !oney.

• Brand 7ourishing &hould be a 3ontinuousBrand 7ourishing &hould be a 3ontinuous8rocess.8rocess.


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Time required***

=%t took seven years of marketingbefore car buyers began torecogni>e that the B!# brand 6asdistinctive?


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&o)))The cost of building abrand can be verysubstantial over a periodof time) That is *hybuying a brand sometimes


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Creating a +e* or

&tronger Image)))

,e-uires. viable product or

service


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8ositioning***

-5 -5 @ &A ET

7%9 E -A E 8R585&%T%57


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35!!57 !%&TA(E&

of$igh Technology %ndustriescontd**

Tend to think ofBrand as a

TE3$7%3A


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0Brand1Companies

+ike)))didas))),eebok)))2evi'&trauss.

.3*n +o


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4alue of &trongBrand

&trong Brand brings*ith it the opportunity toraise the pro!le of aproduct and the companythat sells it5 setting them


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4alue of &trong Brand

Contd)))

• &trong Brand can alsocommand a price premiumfor its producer5 and canreduce the price elasticity5that is5 soften consumer


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4alue of &trong Brand

Contd)))

• &trong Brand can reducethe risk that ne* product

launches *ill 6op and can beused as a platform forsuccessful brand stretching

#including launching a


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Top u4ury Brands+ utureBrand

our !easures of Brand 9uality+1 'egree of control of distribution channel+/ E2ectiveness of marketing

+0 !edia visibility+C %n;uence of brand on purchase decision


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Drivers and Indicators of

Brand &trengthD,I4E,&• 8erceived

9uality• Brand

(no6ledge•

Brand8ositioning• Brand %dentity

I+DIC T3,&• #illingness to pay

a price premium• Acceptance of

brand e4tensions• Brand loyalty•

Brand


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4alue of a Brand 7 BrandE-uity

A 3ompany


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%ierarchy of

Brands8%ouse Brand

%ouse Brands8 0Family1Branding5 *hen an e(istingproduct or service line ise(tended and/or *here thebusiness seeks to capitalize on

9


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!ultibrand &trategy

• 7% E-ER: 8ro"ts in / 11 6ere boostedby sale of a number of brands, part of aplan to push such core brands as F'ove<soap and ipton tea 6hile sheddingother goods, such as Eli>abeth Arden

makeup* 8lans to slim the productportfolio to only +D C brands by / 1G* That


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!anagement of Brands

• 3ounterfeiting• 8arallel %mportation• 'igital trademarksIdomain name

con;icts• 3oJbranding• 'ilution or misleading use• Advertising• !arketing•

3opyright


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!anagement of Brands

3orporate Restructuring 5ptions:• orming subsidiaries• 5utsourcing key operations• Transferring discrete operations +such

as manufacturing and product design

6ithin the country or abroad• 'e"ning the scope of 6hat is licensed

+segmentation of the market. territorial

or online, range of products, services


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!anagement of Brands• Brand core development• Brand positioning• Brand di2erentiation• Brand penetration via the marketing

mi4• Brand stretching•

Brand strategyIbrand architecture• Brand transfer• Brand globali>ation•

Trade marketing


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• Brand Recognition / EquityBrand Recognition / Equity - awareness, loyalty, quality,emotion

• Brand Preference / LoyaltyBrand Preference / Loyalty - the degree to whichcustomers are committed to further purchases eg. I will

always uy Ree o! "Brand Insistence# $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ • Brand %warenessBrand %wareness -your product is the first that comes to

mind in a certain product category

eg. &napple ice tea, 'eans-Le(i)s, wal!man - &*+• Brand %ssociationBrand %ssociation - the lin! to fa(oura le images,

cele rities, geographic regionsie. Red &trip - amaica, - 0ermany, &creech - +1L2

B il ) Ei

Brand Equity Class

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