Marketing / Brand Management - BBA/MBA Course Your comments are welcome to improve this content.. Francois Gaucher Aperto Libro Academy

1. Defining BRAND EQUITYFG - Brand Management – Chapter 2
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2. Learning Objectives
 1. Defining Brand Equity
 2. Measuring Brand Equity
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3. Brand Equity
 Brand equity principles
 Brand equity describes the value of having a well-known
brand name.
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4. Brand Equity
 Principles of brand equity
 The value premium that a company realizes from a
product with a recognizable name as compared to its
generic equivalent.
 Companies can create brand equity for their products
 By making them memorable, easily recognizable and superior in
quality and reliability.
 By developing values and emotions attached to their products
 By developing Mass marketing campaigns
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5. Brand Equity
 Principles of brand equity
 The value premium that a company realizes from a
product with a recognizable name as compared to its
generic equivalent.
 Companies can create brand equity for their products
 By making them memorable, easily recognizable and superior in
quality and reliability.
 By developing values and emotions attached to their products
 By developing Mass marketing campaigns
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6. Brand Equity
 Negative brand equity
 If consumers are willing to pay more for a generic product
than for a branded one, the brand is said to have negative
brand equity.
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7. Brand Equity
 Negative brand equity
 Negative brand equity might
happen if a company had a
major product recall or
caused a widely publicized
environmental disaster.
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8. Brand Equity
 Importance of brand equity
 Financial results
 Sales predictability
 Price premium
 Attract investors
 Umbrella effect:
 When a company wants to expand its product line, if the
brand's equity is positive, customers will more likely buy the
new product by associating it with the existing successful
brand.
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9. Brand Equity Measurement
 Brand Equity can be measured at the
 Firm level
 Product level
 Consumer level
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10. Brand Equity Measurement
 Firm Level Measurement
 Firm level approaches measure the brand as a financial
asset.
 In short, a calculation is made regarding how much the
brand is worth as an intangible asset.
 Cf. Interbrand annual ranking
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11. Strong Brands
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12. Brand Equity Measurement
 Product Level Measurement
 The classic product level brand measurement example
is to compare the price of a no-name (generic) or
private label product to an "equivalent" branded
product.
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13. Brand Equity Measurement
 Product Level Measurement
 The difference in price, assuming all things equal, is due to
the brand.
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14. Brand Equity Measurement
 Consumer Level Measurement
 This approach seeks to measure 3 dimensions of
brand equity:
1. Awareness
2. brand image
3. Customer loyalty
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15. Brand Equity Measurement
 Consumer Level Measurement
 Awareness
 the extent to which a brand is recognized by potential
customers, and is correctly associated with a particular
product category.
 Brand image
 This approach seeks to map the mind of the consumer to find
out what associations with the brand the consumer has.
 Brand loyalty
 A consumer's commitment to repurchase or otherwise
continue using the brand, or other positive behaviors such as
word of mouth advocacy.
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16. Brand Equity Measurement
 Measures of Brand Awareness
 Aided Awareness - When asked about a product category,
if the consumer is aided with a list of company names and
he recognizes the company from the given set it is
categorized as aided awareness.
 Spontaneous awareness - When asked about a product
category, the consumers are asked to list brands they know
without any cues.
 Top of the mind Awareness - It’s the first brand name listed by
the consumers when asked to name brands they know without
any cues.
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17. Brand Equity Measurement
 Brand Image
 Brand image is the consumers’ perception about the brand.
 It can be defined as a unique bundle of associations within
the minds of target customers.
 It signifies what the brand presently stands for.
 It is a set of beliefs held about a specific brand.
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18. Brand Equity Measurement
 Brand Image
 Definition: A unique set of associations in the minds
of customers concerning what a brand stands for and
the implied promises the brand makes.
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19. Brand Equity Measurement
 Brand Image Components
 Visual associations: What customer see about the brand
 Mental associations: What customers think about the brand
 Product and attributes: (design, functionalities, quality, category,
industry, etc.)
 Usage imagery: when, where, how we use the product (e.g. it evoke
sports, holidays, week-ends, etc.)
 Personality of the brand (e.g. sophisticated (Chanel), rugged (The North
Face), etc.
 Emotional associations: What customers feels when in contact
with the brand
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20. Brand Equity Measurement
 Brand Image Components
 Visual associations:
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Round shaped spectacles and a stickGolden Arches & Ronald

21. Brand Equity Measurement
Positive Emotions and moods
 Good
 Safe
 Trust
 Inspired
 Belonging
 Admired
 Superior
 Belonging
 Self-confident
 Express my personality
 Aesthetic
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 Trendy
 “First” in things
 Influential over others
 Efficient
 Comfortable
 Generous
 Gratified
 Pride
 Smart
 Imaginative
 Enchantment
 Etc.

22. Brand Equity Measurement
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23. Brand Equity Measurement
 Brand image
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24. Brand Equity Measurement
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25. Brand Equity Measurement
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26. Brand Equity Measurement
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27. Brand Equity Measurement
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28. Brand Equity Measurement
 Consumer Level Measurement
 Brands with high levels of awareness and strong,
favorable and unique associations are high equity
brands.
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29. Brand Equity Measurement
 Importance of brand image
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30. Brand Management
How to Measure Brand Equity30

31. Brand Equity Measurement
1. Measuring Brand AWARENESS
Can a customer spontaneously recall your brand?
Awareness is measured for a Category of product
 Product category: A product category is all the products offering the
same general functionality
 Unaided Awareness
 Aided Awareness
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32. Brand Equity Measurement
 Unaided awareness is captured via an open-ended question.
 Example of unaided awareness:
 Please Name all the brands of [Category of Product] you can
think of.
 E.g. General category: bags; Sub-categories women bags, men bags,
children bags, outdoor bags, city bags, school bags, etc., fashion
clothes, shoes, cars, beverages, etc.
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33. Brand Equity Measurement
 Example Top of Mind awareness:
 What is the first brand that comes to your mind when you
think of [Product category] women bags?
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34. Brand Equity Measurement
 Aided Awareness
 Aided awareness provides a pick list from which respondents
can choose the brands they are aware of.
 This list must be randomized and be in a multiple response
format where they can select any or all brands they have
awareness of.
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35. Brand Equity Measurement
 Example Aided Awareness
Which of the following bottled water brands have you heard of?
(Select all that apply)
 Aquafina
 Dasani
 SmartWater
 My Brand
 Fiji
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36. Brand Equity Measurement
 Example Aided Awareness
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37. Brand Equity Measurement
2. Measuring Brand ASSOCIATIONS
Example 1- Brand Associations
 The following question can be open or aided (with a list of
attributes proposed to respondent)
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38. Brand Equity Measurement
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 Questions can start with the general perception of the brand:
 When you think of Nike, What comes to your mind?
 What does Nike means to you?

39. Brand Equity Measurement
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 …and continue with more focus questions:
Product attributes
 What does the air pocket evoke to you?
Usage imagery
 When would you use Nike? (ask for occasions and moods)
Brand personality
 If Nike were a person, what would its personality be like?
Feelings and experience
 If I say Nike, what kind of feeling does it evoke?

40. Brand Equity Measurement
 2. Measuring Brand Association
 Example 2 – Brand Associations
 Which of the following attributes do you associate with [brand]?
 Affordable
 Fun
 Safe
 Dependable
 Modern
 Stylish
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 Easy to Use
 Essential
 Powerful
 Other Popular
 None of these

41. Brand Equity Measurement
 Brand Personality
 The Five Dimensions of Brand Personality by Jennifer Aaker (1997) is a
framework to describe and measure the “personality” of a brand in five
core dimensions, each divided into a set of facets. It is a model to
describe the profile of a brand by using an analogy with a human being.
 Sincerity (down-to-earth, honest, wholesome, cheerful)
 Excitement (daring, spirited, imaginative, up-to-date)
 Competence (reliable, intelligent, successful)
 Sophistication (upper class, charming)
 Ruggedness (outdoorsy, tough)
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42. Brand Equity Measurement
 Brand Personality
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43. Brand Equity Measurement
 Example of question used for Brand Personality
Overall, I think that Nike is down to earth
Disagree 1 2 3 4 5 6 7 Agree
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44. Brand Equity Measurement
3. Measuring Brand LOYALTY
 Customer loyalty is made up of 3 components
① Intention to purchase and repurchase
② Recommendation
③ Satisfaction
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45. Brand Equity Measurement
Intention to purchase and repurchase
How likely are you to buy brand X?
 Very likely – Rather Likely – Don’t know – Rather not likely - not likely
at all
When is the last time you bought brand X?
 Last week- 1 month ago – 3 month ago – 6 months ago – 1 year ago
Are you willing to buy again? When?
 Very likely – Rather Likely – Don’t know – Rather not likely - not likely
at all
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46. Brand Equity Measurement
Recommendation
Are you willing to recommend brand X to relatives, friends
and colleagues?
 Very likely to not likely at all
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47. Brand Equity Measurement
Satisfaction
Overall, how satisfied are you with brand X?
 Extremely satisfied to not satisfied
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48. Brand Equity Measurement
3. Satisfaction
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Only very satisfied
customers (delighted) are
LOYAL