brand equity
B RAND M ANAGEMENT S TUDY N OTES Brand – a name, term, symbol, sign, or design which is intended to identify the goods or services of a seller and to differentiate them from competitors. ! The psychological response to a brand can be as important as the physiological one. ! Brands are a “network of associations”. The associations reside in the customers’ minds. ! The key to branding is that consumers perceive differences among brands in a product category. ! The best brands are a source of company wealth, improve with age, and develop clear perceptions. Product – anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
BRAND EQUITY Brand Equity – the marketing effects uniquely attributable to the brand. ! Brand knowledge creates brand equity because it creates the differential effect that drives brand equity. Consumer Based Brand Equity – the differential effect that brand knowledge has on consumer response to the marketing of the brand. ! Differential effect – Your USP and SCA (sustainable competitive advantage). ! Consumers must know about your differential effect and react favourably to it. Positive CBBE: 1. More accepting of new brand extension. 2. Less sensitive to price changes (higher elasticity). 3. More willing to seek out brand in new distribution channel.
BRAND EQUITY Brand Equity – the marketing effects uniquely attributable to the brand. ! Brand knowledge creates brand equity because it creates the differential effect that drives brand equity. Consumer Based Brand Equity – the differential effect that brand knowledge has on consumer response to the marketing of the brand. ! Differential effect – Your USP and SCA (sustainable competitive advantage). ! Consumers must know about your differential effect and react favourably to it. Positive CBBE: 1. More accepting of new brand extension. 2. Less sensitive to price changes (higher elasticity). 3. More willing to seek out brand in new distribution channel.
