Hence, a strategy should be planned such that the uniqueness of the product can be established. We all love Facebook to the core and our lives are literally incomplete without it and it is on our fingertips in regular intervals throughout the day for various reasons. The management can also launch brands which will command the loyalty of the market. A product of a popular brand can generate more revenue as compared to an unknown brand. But above all, the offerings have to be superior in quality and reliable to create a good Brand Equity and if it not so, no amount of marketing or promotions can help the company to attain this required objective. Brand Management; Social Media Marketing; Sales Management; Environmental Management; Consumer Behavior; Material Management; Human Resource Management. This gives an advantage to a branded product over an unknown product. Brand Equity can be defined as the premium charged by the company for its particular product or service offered as it has a renowned and recognized name in the market as compared to the similar line of products or services having same features and utility. Consumers believe that this brand has a certain amount of prestige, and they're willing to pay a premium for all things Tiffany. Brand Equity is the tangible and intangible worth of a brand. It states that a consumer goes ssthrough the following five stages before showing satisfaction for a product. The product has to be positioned as per these factors in their respective sectors. I love writing about the latest in marketing & advertising. Phoebe Y It is a continuous process due to the volatile nature of the market and the evolving preferences of the consumers. Having a good and strong Brand Equity increases the market share of the company owing to the factor of customer loyalty and their affinity towards the brand and its offerings. That value is determined by consumer perception of and experiences with the brand. Brand equity is linked to brand recognition as a customer must be aware of the brand name initially, but it differs from it as brand equity emphasizes the added value that the brand-name provides to the product. Brand equity is often reflected in the way customers see, feel, and act towards the brand. In this lesson, we'll be looking at brand equity, which is a critical component to building a business...and also read the Brand Development... Homepage; Library. Brand equity accounts for the difference in customer response that a brand name makes. Companies can generate the positive and high level of Brand Equity for their specific line of products or services by making them memorable and recognized in the minds of the consumers creating an emotional connection through various marketing and promotional campaigns. Brand equity refers to the value a company gains from a product with a recognizable and admired name when compared to a generic equivalent. Brand equity is a central construct in the marketing literature and has important implications for brand management (Aaker & Keller, 1990; Barwise, 1993; Farquhar, 1989; Keller, 1993).Brand equity has been defined as the incremental utility of a branded product compared to its nonbranded counterpart (Aaker, 1991; Keller, 1993, 2003; Leuthesser, 1988). Brand Equity. ... not what the company owning the brand says it does. If people think highly of a brand, it … There are positive as well as negative effects of Brand equity. Awareness, 2. The company is in a position to command a premium from the consumers. Brand Equity is one of the crucial assets of the company and it can be leased, sold or licensed to the other companies in the market as it has a strong foothold in the industry. Using Event Marketing To Build Brand Equity, Keller’s Brand equity Model – CBBE Model by Keller. To start with, the Brand Equity is built on the knowledge that the consumers have about the brand such as its values, strength, unique selling propositions, and competitive advantage along with the nature and features of the products and services offered to them that results in the perception about the brand in their minds. Management Platform ... or ‘commercial value’. Peter Farquhar, in a paper he published on Managing Brand Equity, suggests three stages in building strong brand identity − Introduce − Introduce an innovative and quality product in the market. Brand Equity is a qualitative measure of the brand’s positive recognition or goodwill in the minds of the consumers considering the brand as an independent entity. Importance of Brand Design, Generic Brand Definition - Difference from Brand Name, Brand Positioning: Definition, Importance, Examples and Strategy Steps. Brand Equity comprises three components namely, the perceptions of the consumers, the negative and positive effects, and the resulting value on the brand and the company as a whole. Remember that a few products can always become a few brands in the management portfolio. It is the aggregate of assets and liabilities attached to the brand name and symbol which results in the relationship customers have with the brand. What is Brand Audit? Brand Equity exists as a function of consumer choice in the market place. Brand equity is the added value endowed on products and services. Get an insight on key market data on various products and services in Malaysia and increase your market / business knowledge. Consumers have a perspective that a product from well know brand will be better in terms of quality than others. In essence, brand equity is a factor of a brand’s ability to keep and attract customers. AIDAS theory is a very popular marketing technique. Even when the quality is superb, companies have to do a lot of marketing campaigns to build brand equity. Some of the elements associated to it include −. The brand remains profitable even when it's a down economy. Today, the facet of Brand Equity holds the significant amount of value in the market as the brands compete against each other over the Brand Equity of the specific and similar line of products and services offered to the target market and audience. A number of benefits can result from a strong brand, both in terms of greater revenue and lower costs for the firm, including the fo… Some of the benefits are as follows −, It increases customer confidence in purchasing decision, It increases efficiency and effectiveness of advertisement and promotion, Products can be priced higher for bigger margin and higher Return On Investment (ROI). Brand equity can be positive or negative. The characteristics or different features of packaging can be listed as follows −. Product mix refers to all the products offered by a particular company. Most […] 1.0 Introduction The most important aspect of marketing management is the subject of brand equity. Examples of this are all around us in home and kitchen appliances and consumer durable segments where the loyalty of the market shifts based on the new products launched by companies. Consumers have a perspective that a product from well know brand will be better in terms of quality than others. How brand visibility increases brand equity? The effect of brand equity can be seen every day. It leads to increased goodwill for the company. Facebook must also be appreciated on increasing its Product line by adding Whatsapp and Instagram to its portfolio. It can be rendered as the aggregate of assets and liabilities that are associated with the brand name and symbol which brings about the relationship customers tend to create with the brand. Keeping a track of the market lets you know which products you need to launch. Elements of brand equity add a value to the brand; a successful brand has all the elements of brand equity. Since last seven years, it is one of the top brands in the mobile and technology industry. The actual nature of how that response differs will depend on the level of brand awareness and how favorably and uniquely consumers evaluate brand associations, as well as the particular marketing activity under consideration. It depends on the number of products manufactured by a company. What is Brand Equity? It includes positioning in relation to competition, positioning with attributes, and positioning in relation to price and quality of other products in the segment. Brand loyalty, 5. Brand equity is a marketing term that describes a brand’s value. Tiffany, the Tiffany brand has a lot of brand equity. At the same time, packaging creates a first impression on the consumer so it should be designed accordingly. Brand Equity is just not built in a day but it requires a lot of effort and hard work on the part of promoters and the key members of the management to offer the products and services that are qualitative, value consumers by offering the finest levels of service and experience plus build the awareness about the brand by initiating the correct and optimum marketing and promotional techniques. Creating Brand Equity - MCQs with answers - Part 1 What is Brand Equity? 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