2 - What is Brand Equity

Question 1

Brand equity

Answer 1

It elicits a different response when the consumer knows the brand. The power of the brand lies in what resides in the hearts and minds of consumers. It consists of differential effect, brand knowledge and consumer response.
Nike
Going up the brand pyramid increases brand equity. Better responses and feelings from consumers allow for brand resonance.

Question 2

Differential effect

Answer 2

Difference in consumer response. Brands have positive brand equity when consumers know the brand. Differential impact that the brand has on consumers
Coca Cola
PODs can help elicit better consumer response. They make the brand stand out in comparison to another brand.

Question 3

Consumer response

Answer 3

How a consumer responds to a marketing campaign. Choice of a brand, recall of ad, response to a sales promotion, evaluations of a proposed brand extension.
Dove
Brand response – rational consumer judgments and emotional feelings to marketing techniques.

Question 4

Advantages of strong brands

Answer 4

• Improved perceptions of product performance
• Greater loyalty
• Less vulnerability to marketing crises
• Larger margins
• More inelastic consumer response to price increases
• More elastic consumer response to price decreases
• Greater trade cooperation and support
• Increasing marketing communication effectiveness
• Possible licensing opportunities
• Additional brand extension opportunities.
Disney
Brand performance. Brand resonance. Brand crisis management. Measuring brand equity. IMC. Leveraging secondary associations – characters, celebrities etc. Brand extension.

Question 5

Brand Knowledge

Answer 5

What consumers learn, feel, see, hear and experience in time. It comes in various forms and gives choice to organisations to decide what knowledge to implant in consumers mind. Created through awareness and image.
Adidas
Consumer judgements, brand performance, brand image.

Question 6

Brand Awareness

Answer 6

Consumer’s ability to identify brands under different conditions. Organisations need to start by creating awareness. Establishing brand awareness through increasing familiarity of brand through repeated exposure (slogans, jingles, packaging etc.). There are multiple pathways to a similar concept. Influences formation and strength of associations, increase likelihood that brand will be member of the consideration set, and can affect choices among brands in consideration set.
McDonalds
Brand elements can build brand salience. To know, to love a brand, one must first be aware of the brand.

Question 7

Recognition

Answer 7

Recognising logos, name, slogan or brand in general
Nike Swoosh
Brand elements can make it easier to recognise a brand. Brand salience.

Question 8

Recall

Answer 8

Free recall (unspecific in category) and aided recall (specifying a category of brand). How surveys and market research understand market awareness. It is easier to recognise than to recall. Increase recall by repeat experience consistently. Established brands continue repetition to ensure recognition and recall.
Pepsi and Coca Cola
Brand elements to increase brand awareness. Brand awareness measured through recall (free and aided). Measuring brand equity through brand awareness to help move up the pyramid.

Question 9

Brand Image

Answer 9

Reflects associations perceptions with a brand, which are held in consumer memory.
Gillette
Associations need to be strong, favourable and unique.

Question 10

Strong

Answer 10

Personal relevance and consistency. Consistency by leaving a strong impression in consumers mind.
MasterCard
Strong associations improve brand image. Consumers don’t forget about IMC efforts.

Question 11

Favourable

Answer 11

Positive associations created by convincing consumers that the brand would satisfy their wants and needs. Associations that are desirable to consumers need to be relevant, distinctive, believable, and need to be successfully delivered by the brand. Setting right expectations and delivering beyond what is promised
FedEx
Favourable associations ensure a better brand image. Emotional way to appeal to customers. IMC efforts show how they bring positive associations.

Question 12

Unique

Answer 12

Associations that are not shared with competing brands (POD). Equity reduces when there are strong competitors. Uniqueness sometimes lies in customer service and reaction to when something goes wrong. Comparative advertising can be used – compare yourself to a competitor.
Nike vs. Adidas
Points of difference make a brand unique, ensuring a better brand image. Brand crisis management can be a POD. IMC with comparative advertising to show a brand’s POD.

Question 13

Brand Resonance Pyramid

Answer 13

Graphical representation of building brand equity. 1. Ensure identification of brand with customers and associations of the brand in their mind. 2. Establish totality of brand meaning in the minds of customers by linking tangible/intangible brand associations. 3. Elicit proper customer responses to the brand. 4. Convert brand responses to create brand resonance and intense, active loyalty relationships. Moving up the pyramid can be done through the rational right side of the pyramid that appeals to the mind/the emotional left side of the pyramid that appeals to hearts/ both.
Apple
Moving up the pyramid needs to be measured through quantitative research techniques. Brand equity involves the pyramid. People need to know you through brand salience; brands have choices in brand meaning. Getting a response rationally/emotionally. Creating relationship with customers

Question 14

Brand Identity

Answer 14

Who are you? It creates awareness through salience.
Packaging
Brand salience can be through brand elements

Question 15

Brand Salience

Answer 15

Brand must not only be on top of the mind, have sufficient mind share but also must come to mind at right times and places. It is in front of the customer. Helps customers understand the category the brand competes in and what is sold under the brand name.
Shampoo Packaging
Can be measured through quantitative research methods. Recognition and recall. Brand awareness, consumer knowledge. Can be achieved through brand elements. Helps brands move up the pyramid to gain brand equity. Improve recognition and recall.

Question 16

Brand Meaning

Answer 16

Information implanted in consumers mind, what consumers think about the brand. Attaching meaning to the brand.
Advertising
Brand elements, IMC, leveraging secondary associations.

Question 17

Brand Performance

Answer 17

How well a product/ service meets consumer’s functional needs.
• Primary characteristics, supplementary features
• Product reliability, durability, serviceability
• Service effectiveness, efficiency, empathy
• Style, design
• Price
Honda
Measured through quantitative research methods. Can be communicated through IMC, brand elements. Helps brands move up the pyramid to gain brand equity.

Question 18

Brand Imagery

Answer 18

Any associations of the product
• User imagery: demographics/ psychographics
• Usage imagery: when to use the brand
• History, heritage, and experience: relying on beginnings to appeal to the consumer. Older brands rely on how long they have been around.
• Brand personality: trying to give a brand a human characteristics
Harley Davidson, Orange juice/ Dominos, Carlton Draught, Dove and sincerity
Measured through quantitative research methods. Can be communicated through IMC, brand elements and leveraging secondary associations. Helps brands move up the pyramid to gain brand equity. Improve recognition and recall.

Question 19

Benefits to be implanted in consumers mind

Answer 19

• Functional: relate to a brand’s ability to solve a specific problem
• Symbolic: reflect basic need for social approval, personal expression and self esteem
• Experiential: sensory pleasures, variety, cognitive stimulation gained through consumption
Gillette, Rolex, Smith chips
Benefits implanted can positively affected brand image and by extension brand equity. Can be implemented through IMC, leveraging secondary associations, brand elements etc.

Question 20

Consumer judgements

Answer 20

Customers personal opinions and evaluations of the brand
• Brand quality: value, satisfaction
• Brand credibility: expertise (competent, innovative), trustworthiness (dependable), likeability (fun, interesting, worth spending time with)
• Brand consideration: relevance
• Brand superiority: differentiation
Samsung
Measured through quantitative research methods. Can be communicated through IMC and leveraging secondary associations. Helps brands move up the pyramid to gain brand equity.

Question 21

Consumer Feelings

Answer 21

Appeal to the emotional aspects. What customers feel about a brand i.e. love, warmth, fun, excitement, security, social approval, self respect
Hallmark, Canon
Measured through quantitative research methods. Can be communicated through IMC and leveraging secondary associations. Helps brands move up the pyramid to gain brand equity.

Question 22

Brand Relationships

Answer 22

What about you and me? When brand achieves resonance, consumer has a relationship with the brand
Apple
Brand equity is achieved when consumers have a relationship and resonate with a brand.

Question 23

Brand Resonance

Answer 23

• Behavioural loyalty: to purchase product again and again. The bare minimum brands try to achieve.
• Attitudinal attachment: consumers change their attitudes due to a brand. Requires strong personal attachment
• Sense of community: when consumers interact with other like-minded people who also like the brand. Word of mouth communication
• Active engagement: where a consumer is waiting for next product. Start spreading the word and standing up for the brand. May choose to join clubs, receive updates, and exchange correspondences with other users/ brand representatives.
Toyota, Customers loving the brand, BMW, Apple
Brand equity achieved when consumers resonate with the brand. Measured through quantitative research methods. Can be achieved through IMC, leveraging secondary associations.