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    Brand Equity For Distribution

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    Varun Jindal
    The document discusses brands, brand names, and brand equity. It defines what a brand is, the functions of brands, and how brand names are chosen. It also defines brand equity and discusses different ways to measure brand equity at the firm, product, and consumer levels.

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    © All Rights Reserved
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    Brand Equity For Distribution

    Uploaded by

    Varun Jindal
    12 views3 pages
    The document discusses brands, brand names, and brand equity. It defines what a brand is, the functions of brands, and how brand names are chosen. It also defines brand equity and discusses different ways to measure brand equity at the firm, product, and consumer levels.

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    The document discusses brands, brand names, and brand equity. It defines what a brand is, the functions of brands, and how brand names are chosen. It also defines brand equity and discusses different ways to measure brand equity at the firm, product, and consumer levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    12 views3 pages

    Brand Equity For Distribution

    Uploaded by

    Varun Jindal
    The document discusses brands, brand names, and brand equity. It defines what a brand is, the functions of brands, and how brand names are chosen. It also defines brand equity and discusses different ways to measure brand equity at the firm, product, and consumer levels.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    BRAND, BRAND NAME & BRAND EQUITY

    Brand:
    A brand is a person’s gut feeling about a product or service. It is something that lies in your
    head. It is a promise that links the product/service to the consumer.
    It can be a product or a service that add dimensions that differentiate it in some way from other
    products or services designed to satisfy the same need. Thus a brand identifies the seller or
    maker. These differences may be functional, rational or tangible related to product performance
    of the brands.
    Branding means to distinguish the goods of one product from another. Brands identify the
    source or the maker of the product and allow customers to assign responsibility to a particular
    manufacturer or a distributor. Consumers learn about brands from past experience or marketing
    programs.

    Functions of a Brand
    1) It helps in product handling & tracking
    2) It helps in inventory organization & accounting records
    3) Brands help the firm to get legal protection for the unique features or aspects of the
    product. Brand name can be protected through registered trademarks, manufacturing
    process can be protected through patents and packaging can be protected through
    copyrights & design.
    4) Brand shows a certain level of quality so that the buyers can easily choose the product
    again.
    5) Brand loyalty provides predictability and security of demand for the firm.
    6) Branding is used as a powerful mean for gaining a competitive advantage.

    A brand can thus be defined as a word, symbol or a letter or a group of all these. But it is more
    than an identification mark.

    It can convey up to six level of meaning


    (1) Attributes: A brand brings to mind certain attributes.
    Eg: Mercedes suggest well-built, well-engineered, durable, prestige
    (2) Benefits: Attributes get translated into functional & emotional benefits.
    (3) Values: The brand speaks about the producer’s value.
    Eg: Mercedes stands for high performance & prestige.
    (4) Culture: Brands also represents a certain culture
    Eg: Mercedes represents German culture, organized, efficient & high quality.
    (5) Personality: The brand can project a certain personality.
    (6) User: Brand suggests the kind of consumers who buys or uses the product.

    Brand Name:
    Once brand consensus has been built, then the next step is to select a brand name. The following
    must be kept in mind while choosing a brand name.
    • Brand name must be short and simple. Long and complicated names must be avoided
    as they create difficulty in reading and remembering them.
    • Brand name must be easily pronounceable as customers at point of purchase would not
    ask for names that are difficult to pronounce.
    • Suggestive brand names are better as they can convey the products attributes or
    benefits.
    • The name should be distinctive i.e. it should not lose its identity in a crowded market.
    A brand is distinctive when it stands apart from others in the same category.
    • A brand name must be selected considering its meaning in other languages. Also some
    word may be perfect in one language/culture but offensive in others.

    Definition: - Thus a brand name can be defined as a name selected by the advertisers, to
    identify a product to the consumer and to set apart from all the products.
    Several product variations may exist within a designated brand.

    Brand equity is a phrase used in marketing industry which describes the value of having a
    well known brand name, based on the idea that the owner of the well known brand name can
    generate more money from products with that brand name then from the products with a less
    well known name, as consumers believe that a product with a well known name is better than
    the products with less well known name.

    Some marketing researchers have concluded that brands are one of the most valuable assets a
    company has, as brand equity is one of the factors which can increase the financial value of the
    brand for the brand owner. Elements that can be included in the valuation of brand equity
    include (but not limited to); changing market share, profit margins, consumer recognition of
    logos and other visual elements, brand language associations made by consumers, consumer’s
    perceptions of quality and other relevant brand values.

    Consumers’ knowledge about a brand also governs how manufacturers and advertisers market
    the brand.

    Brand equity is strategically crucial, but famously difficult to quantify. Many experts have
    developed tools to analyse this asset, but there is no agreed way to measure it. One of the serial
    challenges that marketing professionals find with the concept of brand equity, the disconnect
    between quantitative and qualitative equity values is difficult to reconcile. Quantitative brand
    equity includes numerical values such as profit margins and market share, but fails to capture
    qualitative elements such as prestige and associations of interest. Overall, most marketing
    practitioners take a more qualitative approach to brand equity because of this challenge.

    There are many ways to measure a brand. Some measurement approaches are at the firm level,
    some at the product level and still others are at the consumer level.

    Firm level: Firm level approaches measure brand as a financial asset. In short, a calculation is
    made regarding how much the brand is worth as an intangible asset. For example, if you were
    to take the value of the firm as derived by its market capitalization- and then subtract tangible
    assets and “measurable” intangible assets- the residual would be the brand equity.

    Product level: The classic product level brand measurement example is to compare the price
    of a no-name or private label product an “equivalent” branded product. The difference in price
    assuming all things equal, is due to the brand.

    Consumer level: This approach seeks to map the mind of the consumer to find out what
    associations with the brand the consumer has. This approach seeks to measure the awareness
    (recall and recognition) and brand image (the overall associations the brand has). Brands with
    high levels of awareness and strong, favourable and unique associations are high equity brands.

    Positive brand equity vs negative brand equity:

    Brand equity is the positive effect of the brand on the difference between the prices that the
    consumer accepts to pay when the brand known compare to the value of benefit received.

    There are two schools of thoughts regarding the existence of negative brand equity. One
    perspective states brand equity cannot be negative, hypothesizing only positive brand equity is
    created by marketing activities such as advertising, PR, and promotion. A second perspective
    is that negative equity can exists due to catastrophic events to the brand and maybe used to
    describe a product or service where a brand has a negligible effect on the product level when
    compared to a no-name or private label product.

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