BRAND MANAGEMENT

Dr. Shailesh G
Department of
Bachelor of Business Administration
BRAND MANAGEMENT

Unit 3
BRAND Equity

Dr. Shailesh G
Department of Bachelor of Business Administration- BBA
 BRAND MANAGEMENT
BRAND EQUITY

Brand equity can be described as the value of a well-established

brand name. A product of a popular brand can generate more
revenue as compared to an unknown brand.

Consumers have a perspective that a product from well know

brand will be better in terms of quality than others. This gives an
advantage to a branded product over an unknown product.
 BRAND MANAGEMENT
ELEMENTS OF BRAND EQUITY

Consumer loyalty

Awareness of brand

Quality of product

Association with brand

Proprietary assets owned by the brand

BRAND MANAGEMENT
Aaker’s Brand Equity Model
 BRAND MANAGEMENT
Brand Loyalty

Reduced Costs − Maintaining loyal customers is cheaper than

charming new ones.
Trade Leverage − The loyal customers generate steady source of
revenue.
Bringing New Customers − Existing customers boost brand
awareness and can bring new customers.
Competitive Threats Response Time − Loyal customers take time
to switch to a new product or service offered by other brand.
Hence this buys time for the company to respond to competitive
threats.
 BRAND MANAGEMENT
Brand Awareness

Association Anchors − Depending upon the brand strength,

associations can be attached to the brand which influence brand
awareness.
Familiarity − The consumers familiar with a brand will speak more
about it and thus, influence brand awareness.
Substantiality − Consumers’ review on brand brings substantial
and strong commitment towards the brand.
Consumer’s Consideration − At the time of purchasing, consumer
looks for a particular brand.
 BRAND MANAGEMENT
Perceived Quality

Quality − The quality itself is the reason to buy.

Brand Position − This is a level of differentiation as compared to
competing brands. Higher the position, higher is the perceived
quality.
Price − When quality of the product is too complex to assess and
consumer’s status comes into picture, the consumer takes price as
a quality indicator.
Wide Availability − Consumers take widely available product as a
reliable one.
Number of Brand Extensions − The consumers tend to take a
brand with more extensions as a measure of product guarantee.
 BRAND MANAGEMENT
Brand Associations

Information Retrieval − It is the extent to which the brand name

is able to retrieve or process the associations from consumer’s
memory.
Drive Purchasing − This is the extent to which brand associations
drive consumers to purchase.
Attitude − This is the extent to which brand associations create
positive attitude in the consumer’s mind.
Number of Brand Extensions − More the extensions, more the
opportunity to add brand associations.
 BRAND MANAGEMENT
Keller’s Brand Equity Model

This model is developed by Kelvin Lane Keller, a marketing

professor at Dartmouth College.

It is based on the idea that the power of a brand lies in what the
consumer has heard, learnt, felt, and seen as a brand over time.

Hence this model is also termed as Customer Based Brand

Equity (CBBE) model.
BRAND MANAGEMENT
Keller’s Brand Equity Model
 BRAND MANAGEMENT
Keller’s Brand Equity Model

Four basic questions for building brand equity starting from the
base of the pyramid shown above −

Who are you? (Brand Identity)

What are you? (Brand Meaning)
What do I feel or think about you? (Brand Responses)
What type and extent of association I would like to have with
you? (Brand Relationships)
 BRAND MANAGEMENT
Brand Identity

It is not only how often and easily the consumer can recall or
recognize the brand but also where and when he thinks of the
brand.

The key is to create brand salience to acquiring correct brand

identity.
 BRAND MANAGEMENT
Brand Meaning

To make the brand meaningful it is essential to create a brand

image and characteristics.

Brand meaning arises out of brand associations, which can

be imagery-related or function-related.

The imagery-related associations depict how well the brand

meets social and psychological needs of the consumer.
 BRAND MANAGEMENT
Brand Meaning

The function-related association such as product or service

performance is what the consumer looks for primarily.

A brand with the right identity and meaning creates a sense of

relevance in the consumer’s mind.
 BRAND MANAGEMENT
Brand Responses

Consumer Judgments − They are consumer’s personal opinions

regarding the brand and how he has put imagery-related and
performance-related associations together. There are four types
of judgments crucial for creating a strong brand −
•Quality
•Credibility
•Consideration
•Superiority
 BRAND MANAGEMENT
Brand Responses

Consumer Feelings − They are consumer’s emotional reactions to

the brand. They can be mild, intense, positive, negative, driven
from heart or head. There are six important feelings crucial in
brand building −
Warmth
Fun
Excitement
Security
Social approval
Self-respect
 BRAND MANAGEMENT
Brand Relationships

It is the level of personal identification the consumer has with the

brand.

It is also called brand resonance, when a consumer has a deep

psychological bonding with the brand.

Brand resonance is the most difficult and highly desirable level to

achieve.
 BRAND MANAGEMENT
Categories of Brand Relationships

Behavioral Loyalty − Consumers may purchase a brand repeatedly

or in high volume.
Attitudinal Attachment − Some consumers may buy a brand
because it is their favorite possession or out of some pleasure.
Sense of Community − Being identified with a brand community
develops kinship in the consumer’s mind towards representatives,
employees, or other people associated with the brand.
Active Engagement − Consumers invests time, money, energy, or
other resources and participates actively in brand chat rooms,
blogs, etc., beyond mere consumption of brand. Thus, the
consumers strengthen the brand.
BRAND MANAGEMENT

Next Class Topic

Unit 3
THANK YOU

Dr. Shailesh G
Department of BBA
[email protected]
BRAND MANAGEMENT

Dr. Shailesh G
Department of
Bachelor of Business Administration
BRAND MANAGEMENT

Unit 3
BRAND Equity

Dr. Shailesh G
Department of Bachelor of Business Administration- BBA
 BRAND MANAGEMENT
BRAND IDENTITY

Brand identity is the visible elements of a brand, such as color,

design, and logo, that identify and distinguish the brand in
consumers' minds. Brand identity is distinct from brand image.

Consistent marketing and messaging leads to a consistent brand

identity and, therefore, consistent sales.
 BRAND MANAGEMENT
BRAND IDENTITY IMPORTANCE

1. A strong brand name and logo/image helps to keep your company in

the mind of your potential customers.

2. If a customer's happy with your products or services, a

solid identity helps to build customer loyalty across your business.

3. People like to be associated with “good” brands.

4. To be a competitive and successful company, crafting a strong brand

identity is mandatory
BRAND MANAGEMENT
CREATING STRONG BRAND IDENTITY

1. Clear brand purpose and positioning

2. Thorough market research
3. Likable brand personality
4. Memorable logo
5. Attractive color palette
6. Professional typography
7. On-brand supporting graphics
BRAND MANAGEMENT
BRAND IDENTITY PRISM
BRAND MANAGEMENT
BRAND IDENTITY PRISM
BRAND MANAGEMENT
BRAND IMAGE
BRAND MANAGEMENT
BRAND IMAGE

✓Brand image is the customer’s perception of your brand

based on their interactions.
✓It can evolve over time and doesn’t necessarily involve a
customer making a purchase or using your products and/or
services.
✓Since customers can have a different opinion of your
brand, it’s important to work hard to maintain a consistent
brand image.
BRAND MANAGEMENT
HOW TO BUILD BRAND IMAGE

1. Determine your mission, vision, and values

2. Create a brand positioning statement

3. Create a brand personality

4. Identify your key audiences using persona research

BRAND MANAGEMENT

Next Class Topic

Unit 3 – Building Brand Equity

THANK YOU

Dr. Shailesh G
Department of BBA
[email protected]
BRAND MANAGEMENT

Dr. Shailesh G
Department of
Bachelor of Business Administration
BRAND MANAGEMENT

Unit 3
BRAND Equity

Dr. Shailesh G
Department of Bachelor of Business Administration- BBA
BRAND MANAGEMENT
STEPS IN BUILDING BRAND EQUITY
BRAND MANAGEMENT
BRAND ASSET VALUATOR
BRAND MANAGEMENT
BRAND ASSET VALUATOR

Advertising agency Young and Rubicam (Y&R) developed a model of

brand equity called the BrandAsset® Valuator (BAV).
1. Energized differentiation measures the degree to which a brand
is seen as different from others as well as its pricing power.
2. Relevance measures the appropriateness and breadth of a
brand’s appeal.
3. Esteem measures perceptions of quality and loyalty, or how well
the brand is regarded and respected.
4. Knowledge measures how aware and familiar consumers are
with the brand and the depth of their experience.
 BRAND MANAGEMENT
BRAND ASSET VALUATOR

Energized differentiation and relevance combine to determine

brand strength—a leading indicator that predicts future growth
value.

Esteem and knowledge together create brand stature, a “report

card” of past performance and a lagging indicator of current
operating value.
BRAND MANAGEMENT
BRAND DYNAMICS PYRAMID

https://avaremy.wordpress.com/2013/11/09/brand-equity/
 BRAND MANAGEMENT
BRAND DYNAMICS PYRAMID

Marketing Research consultants Milward Brown and WPP developed the

BrandZ model of brand strength, at the heart of which is the brand
dynamics pyramid.

1. Presence: Active familiarity based on past trial, saliency or

knowledge of brand promise (Do I know about it?)
2. Relevance: Relevant to consumer’s needs, in the right price range or
in consideration set (Does it offer me something)
3. Performance: Felt to deliver acceptable product performance and is
on the consumer’s short-list (Can it deliver)
4. Advantage: Felt to have an emotional or rational advantage over
other brands in the category (Does it offer something better than
others?)
5. Bonding: Rational and emotional attachments to the brand to the
exclusion of most other brands (Nothing else beats it)
BRAND MANAGEMENT

Next Class Topic

Unit 3 –Brand Equity Management System

THANK YOU

Dr. Shailesh G
Department of BBA
[email protected]
BRAND MANAGEMENT

Dr. Shailesh G
Department of
Bachelor of Business Administration
BRAND MANAGEMENT

Unit 3
BRAND Equity

Dr. Shailesh G
Department of Bachelor of Business Administration- BBA
BRAND MANAGEMENT
Brand Equity Management System

A brand equity measurement system is a set of research

procedures that is designed to provide timely, accurate, and
actionable information to marketers so that they can make
the best possible tactical decisions in the short run and
strategic decisions in the long-run.
BRAND MANAGEMENT
Brand Equity Management System Design Methods

There are two ways forward in designing measurement

system.
1. One such measurement system relies on indirect method,
where in emotional level changes in consumer are sorted
and recorded.
2. Other system rather relies on direct measurement
method where in consumer response towards brand in
terms of sales etc are measured and analyzed.
BRAND MANAGEMENT
STEPS TO IMPLEMENT BRAND EQUITY MANAGEMENT SYSTEM

1. Creating Brand Equity Charter

• Provides general guidelines to marketing managers within
the company as well as key marketing partners outside the
company
• Should be updated annually
BRAND MANAGEMENT
STEPS TO IMPLEMENT BRAND EQUITY MANAGEMENT SYSTEM

2. Assembling Brand Equity Report

• Assembles the results of the tracking survey and other
relevant performance measures
• To be developed monthly, quarterly, or annually
• Provides descriptive information as to what is happening
with the brand as well as diagnostic information on why it is
happening
BRAND MANAGEMENT
STEPS TO IMPLEMENT BRAND EQUITY MANAGEMENT SYSTEM

3. Defining Brand Equity Responsibilities

• Organizational responsibilities and processes that aim to
maximize long-term brand equity
• Establish position of VP or Director of Equity Management
to oversee implementation of Brand Equity Charter and
Reports
• Ensure that, as much as possible, marketing of the brand is
done in a way that reflects the spirit of the charter and the
substance of the report
BRAND MANAGEMENT

Next Class Topic

Unit 3 –Brand Value Chain

THANK YOU

Dr. Shailesh G
Department of BBA
[email protected]
BRAND MANAGEMENT

Dr. Shailesh G
Department of
Bachelor of Business Administration
BRAND MANAGEMENT

Unit 3
BRAND Equity

Dr. Shailesh G
Department of Bachelor of Business Administration- BBA
BRAND MANAGEMENT
Brand Value Chain

Brand value chain is a structured approach to assessing the

sources and outcomes of brand equity and the manner by
which marketing activities create brand value.

It provides insights to support the various decision makers in

the company and stresses that every member of the company
contribute to this branding effort.
 BRAND MANAGEMENT
Brand Value Chain

https://ceopedia.org/index.php/Brand_value_chain
BRAND MANAGEMENT
Measuring Sources of Brand Equity

I. Qualitative Research Techniques

1. Free Association

2. Projective Technique

3. Ethnographic and Observational Approaches

BRAND MANAGEMENT
Measuring Sources of Brand Equity

II. Quantitative Research technique

1. Awareness

2. Recognition

3. Recall

4. Image

https://brandvision2009.wordpress.com/2009/07/22/measuring-source-of-brand-
equity/#:~:text=The%20difference%20between%20total%20utility,consumer%20minds
et%20or%20brand%20knowledge.
BRAND MANAGEMENT
I. Qualitative Research Techniques

1. Free Association
Powerful way to profile brand associations.
Without any specific probe, consumers narrate:
✓ What comes to their mind when they think about the
brand or the associated product category
✓ Help form a rough mental map for the brand
✓ Indicate the relative strength, favorability, and uniqueness
of brand associations
BRAND MANAGEMENT
I. Qualitative Research Techniques

2. Projective Technique
Projective techniques are diagnostic tools to uncover the
true opinions and feelings of consumers when they are
unwilling or otherwise unable to express themselves on
these matters.
 BRAND MANAGEMENT
I. Qualitative Research Techniques

3. Ethnographic and Observational Approaches

✓ Fresh data can be gathered by directly observing
relative actors and settings.
✓ Consumers can be unobtrusively observed as they
shop or as they consume products to capture every shade
of their behavior.
 BRAND MANAGEMENT
II. Quantitative Research technique

1. Awareness – Brand awareness is related to the strength of

a brand in memory, as reflected by consumers’ ability to

identify various brand elements (i.e., the brand name,

logo, symbol, character, packaging, and slogan) under

different conditions.
 BRAND MANAGEMENT
II. Quantitative Research technique

2. Recognition – In short recognition processes require that

consumers be able to discriminate a stimulus – a word,
object, image, etc. – as something they have previously
seen. Brand recognition relates to consumers’ ability to
identify the brand under a variety of circumstances and
can involve identification of any of the brand elements.
 BRAND MANAGEMENT
II. Quantitative Research technique

3. Recall – Brand recall relates to consumers’ ability to

identify the brand under a variety of circumstances. With
brand recall, consumers must retrieve the actual brand
element from memory when given some related probe or
cue.
Thus brand recall is a more demanding memory task than
brand recognition because consumers are not just given a
brand element and asked to identify or discriminate it as
one they had or had not already seen.
 BRAND MANAGEMENT
II. Quantitative Research technique

4. Image – Brand Awareness is an important first step in

building brand equity, but usually not sufficient. For most
customers in most situations, other considerations, such
as the meaning or image of the brand, also come into play.
One vitally important aspect of the brand is its image, as
reflected by the associations that consumers hold toward
the brand. Brand associations come in many different
forms and can be classified along many different
dimensions.
BRAND MANAGEMENT

Next Class Topic

Unit 3 –Co-Branding
THANK YOU

Dr. Shailesh G
Department of BBA
[email protected]
BRAND MANAGEMENT

Dr. Shailesh G
Department of
Bachelor of Business Administration
BRAND MANAGEMENT

Unit 3
BRAND Equity

Dr. Shailesh G
Department of Bachelor of Business Administration- BBA
BRAND MANAGEMENT
Co-Branding

Co-branding is a marketing strategy that utilizes

multiple brand names on a good or service as part of a
strategic alliance.

Co-branding is the strategy that strives to capture the

synergism of combining two well-known brands into a third,
unique branded product (Rao and Ruekert, 1994).
BRAND MANAGEMENT
Advantages of Co-Branding

1. Each company is launching a product extension tailored to

its loyal customer base yet geared to attract new business.

2. When executed strategically and effectively, companies

maximize exposure and enhance brand recognition.

3. Companies earn respect and credibility when they align

with a reputable, aspirational brand partner.
BRAND MANAGEMENT
Disadvantages of Co-Branding

1. Co-branding is built on the foundation of collaboration, and

when completely different cultures collide, it might not always
be ideal.
2. The agreement requires a lot of trust, guidelines to be followed
very closely, and resources shared.
3. Most importantly, brands need to consider consumer reaction
to this newly established partnership.
4. Brand images can clash, and market segments can be misled if
companies fail to demonstrate a seamless, sensible connection.
BRAND MANAGEMENT
Co-Branding Examples
 BRAND MANAGEMENT
Co-Branding Examples

https://brandmarketingblog.com/articles/branding-
definitions/co-branding/
BRAND MANAGEMENT

Next Class Topic

Unit 3 –Celebrity Endorsement

THANK YOU

Dr. Shailesh G
Department of BBA
[email protected]
BRAND MANAGEMENT

Dr. Shailesh G
Department of
Bachelor of Business Administration
BRAND MANAGEMENT

Unit 3
BRAND Equity

Dr. Shailesh G
Department of Bachelor of Business Administration- BBA
BRAND MANAGEMENT
Celebrity Endorsement

Celebrity Endorsement refers to a marketing strategy whose

purpose is to use one or multiple celebrities to advertise a
specific product or service.

The primary goal, in this case, is to reach a greater audience,

represented by the celebrity's fan base.
BRAND MANAGEMENT
Celebrity Endorsement

✓Celebrity endorsement is a promotional tool that boosts

brand awareness.
✓It is a way of enhancing credibility and gaining visibility for
brands.
✓Celebrities are well-known people and a celebrity
endorsement can make a brand stand out.
✓Many companies have successfully leveraged celebrity
endorsements to result in increased business.
BRAND MANAGEMENT
Celebrity Endorsement

✓Increasingly, smaller and lesser known companies are

reaching out to celebrity influencers to promote their brands.
✓Celebrity endorsement builds credibility and can expose
a brand to new markets.
✓Celebrities are able to reach a lot of people through
different mediums.
✓Celebrities can reach people through television, traditional
media and also social media.
BRAND MANAGEMENT
Celebrity Endorsement

For example, a professional athlete might endorse a specific

brand of athletic footwear. That athlete would then appear in
commercials advertising that particular footwear. They would
also wear that brand of footwear during matches or games.
This is a classic example of celebrity advertisement.
BRAND MANAGEMENT
Celebrity Endorsement

Nike is well known for celebrity endorsements of athletic

footwear. They have had multiple successful celebrity
endorsement campaigns. Whether it is basketball or golf, Nike
has seen considerable gains from endorsements from athletes
such as Michael Jordan and Tiger Woods.
BRAND MANAGEMENT
Considerations before seeking a Celebrity Endorsement

1. Celebrity advertising cannot replace a marketing plan

2. Is associating with a leading celebrity the easiest way to
build a brand?
3. Should celebrity endorsement be the principal channel of
brand communications?
4. How can brands decide on potential brand endorsers?
5. What are the advantages and disadvantages of such
endorsements?
6. Is celebrity endorsement always beneficial to the brand?
7. How can a celebrity enhance a brand image?
8. What are some drawbacks of celebrity endorsement?
 BRAND MANAGEMENT
Advantages of Celebrity Endorsement

1. Influence Consumer Purchases

2. Build Brand Awareness

3. Position a Brand

4. Attract New Users

5. Breathe Life Into Failing Brand

https://smallbusiness.chron.com/effect-celebrities-advertisements-56821.html
BRAND MANAGEMENT
Assignment Questions

1. Do Celebrity Endorsements Increase Sales?

Refer to articles for examples and give a brief description
of 5 successful celebrity endorsements.

2. What Are the Drawbacks of Celebrity Advertising?

Refer to articles for examples and give a brief description
of 5 negative influences or failure celebrity endorsements.
BRAND MANAGEMENT

Next Class Topic

Unit 4
THANK YOU

Dr. Shailesh G
Department of BBA
[email protected]