1. 1 visit: www.studyMarketing.org Managing Brand Equity

2. 2 visit: www.studyMarketing.org Brand equity is a set of brand assets and liabilities linked to a brand

3. 3 visit: www.studyMarketing.org Elements of Brand Equity: Brand Loyalty Brand Awareness Perceived Quality Brand Associations

4. 4 visit: www.studyMarketing.org Brand Loyalty Brand loyalty is a measure of the attachment that a customer has to a brand. It reflects how likely a customer will be to switch to another brand, especially when that brand makes a change, either in price or in product features.

5. 5 visit: www.studyMarketing.org Brand Loyalty Pyramid Committed Buyer Likes the Brand - Considers it a Friend Satisfied Buyer With Switching Costs Habitual Buyer - No Reason to Change Indifferent – No Brand Loyalty Switchers / Price Sensitive

6. 6 visit: www.studyMarketing.org Measuring Brand Loyalty Purchase Behavior Patterns Switching Cost Analysis Satisfaction Measurement

7. 7 visit: www.studyMarketing.org Strategic Value of Brand Loyalty Reduce marketing cost Trade (channel distribution) leverage Attracting new customers

8. 8 visit: www.studyMarketing.org Enhancing Brand Loyalty Treat the customer right Stay close to the customer Measure/manage customer satisfaction Create switching cost Provide extras

9. 9 visit: www.studyMarketing.org Brand Awareness is the ability of a potential buyer to recognize or recall that a brand is a member of a certain product category

10. 10 visit: www.studyMarketing.org Brand Awareness Hierarchy Top of Mind Brand Recall Brand Recognition Unaware of Brand

11. 11 visit: www.studyMarketing.org Value of Brand Awareness Anchor to which other associations can be attached Familiarity and liking Signal of substance/commitment Brand to be considered

12. 12 visit: www.studyMarketing.org How to Achieve Brand Awareness Be different, memorable Involve a slogan or jingle Symbol exposure Publicity Event sponsorship

13. 13 visit: www.studyMarketing.org The customer's perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives. Perceived quality is a perception by customers. Perceived Quality

14. 14 visit: www.studyMarketing.org Product What Influences Perceived Quality of Product? Performance Features Conformance with specifications Reliability Durability Serviceability Fit and finish

15. 15 visit: www.studyMarketing.org Service What Influences Perceived Quality of Service? Appearance Reliability Competence Responsiveness Empathy

16. 16 visit: www.studyMarketing.org The Value of Perceived Quality Reason-to-Buy Differentiate/Position A Price Premium Channel Member Interest Brand Extensions

17. 17 visit: www.studyMarketing.org Brand Association A brand association is anything "linked" in memory to a brand. Thus, McDonald's could be linked to a character such as Ronald McDonald, a consumer segment such as kids, a feeling such as having fun, a product characteristic such as service, or a symbol such as the Golden Arches.

18. 18 visit: www.studyMarketing.org Some Types of Associations Product Attributes Customer Benefits Relative Price Lifestyle/Personality Celebrity/Person Use/Application

19. 19 visit: www.studyMarketing.org The Value of Brand Associations Help Process/Retrieve Information Differentiate/Position Reason-to-Buy Create Positive Attitudes/Feelings Basis for Extensions

20. 20 visit: www.studyMarketing.org Maintaining Associations Be consistent over time Be consistent over elements of the marketing program Manage disasters in order to minimize their damage

21. 21 visit: www.studyMarketing.org Criteria for Brand Name Selection Be easy to learn and remember Suggest the product class Support a symbol or slogan Suggest desired association without being boring or trivial Not suggest undesired associations Be distinctive Be available and protectable legally

22. 22 visit: www.studyMarketing.org Source of Reference: David Aaker, Managing Brand Equity : Capitalizing on the Value of A Brand Name, Free Press. You can obtain this excellent book at this link: http://www.amazon.com/Managing-Brand-Equity- David-Aaker/dp/0029001013/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1219802121&sr=1-1http://www.amazon.com/Managing-Brand-Equity- David-Aaker/dp/0029001013/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1219802121&sr=1-1