Nowadays, it is virtually infeasible to have prosperous business or engender company without vigorous brand and brand equity. In a modern life, brand apperception is one of the most consequential things for customers cull, and for the future development and prosperity of the company.
Product brand equity has become one of the most discussed concepts among marketing scholars. It is suggested that brand equity impacts on customers staunchness intensions. On the other hand, the true brand mindset set to be achieved, the relationship between brand staunchness and brand value needs to be recognised by customers.
This assignment will seek on branding and branding equity. First, the fundamentals of branding will be explicated. Then then concept and assets of brand equity are explicated. The chapter concludes with a vigorous brand by following the steps in the strategic brand management.
What is branding?
Branding is the process of endowing products and services with the power of a brand.
What is brand equity?
Brand equity is the added value endowed to products and services with consumers.
Discussion about four types of brand equity elements
A brand is an intangible asset for an organization. The concept of brand equity originated to quantify the financial worth of this consequential, yet intangible entity. Brand equity comprises the following elements.
AwarenessAwareness of the brand name among target customers is the first step in the equity building process. Vigilance essentially denotes that customers ken about the subsistence of the brand and can additionally recall what category the brand is in.
Anything that is connected to the customer’s recollection about the brand is a sodality. Customers form sodalities on the substratum of quality perceptions, their interactions with employees and the organization, advertisements of the brand, price points at which the brand is sold, product categories that the brand is in, product exhibits in retail stores, publicity in sundry media, offerings of competitors, celebrity sodalities and from what others tell them about the brand. And this is not an exhaustive list.
Perceived quality is additionally a brand sodality, though because of its paramountcy, it is accorded a distinct status while studying brand equity. Perceived quality is the perception of the customer about the overall quality of a brand.
A customer is brand staunch when he purchases one brand from among a set of alternatives consistently over a period. In the traditional sense, brand staunchness was always considered to be cognate to perpetual purchase deportment.
Significance of brand
Even marketers sometimes incline to reduce a brand to a mere logo or symbol, albeit it is much more intricate than that. A brand is an abstract conception that incorporates sundry aspects of a product, including a logo, font, denomination, colours, packaging, as well as a wide array of consumers’ perceptions of it. The initial conception behind branding was to avail customers distinguish between kindred products by different manufacturers, and its primary role was to ameliorate overtness and cognizance. However, in time, the concept of branding developed and grew, and now we can verbalize about brand equity as something that is of vital paramountcy to the value of any brand.
It’s rudimentally how customers perceive a brand, and it equals the sum of all their interactions and experiences with the brand, as well as their prospects from it. Famous brands like Apple, Nike, or Coca-Cola have vigorous brand equity, and it can be translated into their faculty to magnetize customers and retain them.
In other words, customers will always pick the brand they are allegiant to over unbranded or competitor products. Determinately, customers are disposed to pay more for the brand they prefer, which designates that vigorous brands have the luxury of commanding higher prices.
Advantages of brandings
Branding is the process of identifying a product with a denomination or image that communicates the qualities and benefits of a product to customers and prospects. A vigorous brand engenders a personality for the product and differentiates a product from competitors. Branding can avail minuscule businesses increase and retain market share, launch incipient products and maintain remuneratively lucrative pricing levels.
Diminutive businesses that develop vigorous brands build predilection for their products. When consumers are faced with culls in a store, they typically will favour a brand they have purchased afore and trust, according to Brandxpress. This is a consequential advantage if you sell products that customers purchase frequently, such as aliment or other household products. In that sense, a vigorous brand makes a consequential contribution to customer staunchness.
Branding your product can ameliorate the return on your advertising and marketing budget. Communicating the same messages and utilizing brand elements such as logos, colours, packaging and graphics consistently avails to reinforce brand qualities. Building a brand that customers can facilely recall and agonize can reduce your marketing costs in the long term.
A vigorous brand can avail you launch incipient products or enter incipient market sectors. Giving incipient products the brand elements and qualities, that customers apperceive, and trust reduces the jeopardy of failure. The pristine product can be habituated to launch complementary products or products in a different category, because customers associate the incipient product with the subsisting brand qualities.
Branding can avail you increment your revenue and grow your customer base. By promoting your brand consistently, you can move prospects and customers through different calibers of brand familiarity. Brand apperception occurs when customers can recall a brand’s qualities. Brand predilection occurs when customers cull your brand out of habit because they are slaked with it. You have achieved brand insistence when customers actively seek out your product and will not accept a supersession.
A vigorous brand can avail forfend market share and engender barriers to ingression for incipient competitors. Competitors wishing to enter would have to make a major investment in brand development and marketing to match your strengths. Branding can withal avail you to maintain pricing levels. When customers insist on your brand, they will be inclined to pay for the product in predilection to lower-priced offerings.
Kotler’s brand equity model
The content behind the brand equity models is simple. To build a vigorous brand we must decipher how customers feel and cogitate our product. we must establish right type of experiences about our product around the environment and we require to ascertain how customers have concrete, positive, thoughts conceptions, feelings, notions, opinions, and perception about the product.
When we have vigorous brand equity customers will buy more and they will recommend our product to other habitants and customers will more allegiant to us.
The shown diagram illustrates the four steps that we need to follow up to build strong brand equity. The model of the Brand equity are as follows
The first fundamental step of our brand is deciphering and communicating, what our brand is. Not only habitants vigilant of the brand is consequential but additionally, we require to ascertain they are getting the right message as well.
Secondly, we ought to ascertain how our customers dissever their culls and come to the decision between our brand and our competitor’s brand. Next, we have to ascertain what decision making process do our customers go through when they cull the brand? And, when we follow up their decision making processes, we can decipher how much our brand stands out.
The second rudimentary step is build meaning for brand so that will commence to build adhesion among customers. We can build meaning for our brand through commitment for categorical convivial issues, dedication to customer accommodation. The construal of our brand will give the people reason to feel proud of their purchases and this will make them to come back and purchase more.
The third fundamental step is customers replication. Our customers replication to our brand is categories as two “judgments” and “feelings”. The customer will perpetually judge about brand through quality, credibility, consideration, preponderation. Customers withal respond to our brand according to how it makes them feel.
At the top of the brand pyramid we find relationships, which is concerned with the concepts of resonance. The recherche brands that land at this calibre are able to authentically engender a community around the ownership of their products.
Aaker’s brand equity model
In his Brand Equity model, David A. Aaker identifies five brand equity components namely, brand adhesion, brand cognizance, perceived quality, brand sodality, and other proprietary assets. Aaker defines brand equity as the set of brand assets and liabilities linked to the brand, its name and symbols that integrate value to, or subtract value from, a product or accommodation. These assets include brand adhesion, name cognizance, perceived quality and sodalities.
Methods used to build brand equity
Marketers build brand equity by engendering the right brand cognizance structures with the right consumers. The process depends on all brand cognate contacts whether marketer imitated or not.
There are six criteria for culling brand elements. The first three, memorable, consequential, and amiable and brand building. The latter three transferable, adoptable, and protectable are defensive and avail adoptable and preserve brand equity against challenges.
Memorable – How easily customers recall and recognize the brand element, and when at both purchase and consumption?
Meaningful – Is the brand element credible? Does it suggest the corresponding category and product ingredient or the type of the person who might be use the brand?
Likable – How aesthetically appealing is the brand element?
Transferable – Can the brand element introduce new products in the same or different categories? Does it add to brand equity across geographic boundaries and market segments?
Adaptable – How adaptable and updatable is the brand element? Logos can easily be updated.
Protectable – How legally protectable is the brand element? How competitively protectable?
Measure the brand equity
The brand value chain is a structured approach to assessing the sources and outcomes of brand equity and the way marketing activities engender brand value it is predicated on several premises. These distinct factors that will avails to quantify brand equity as follows
Customers cognizance of your products and accommodations is a paramount part of brand equity. But even better than customers kenning contemplating your brand.
Consumer predilection is a puissant factor in daily purchase decision, it is the reason a customer a decide to peregrinate further and spend more money to access a product or accommodation they authentically like.
Financial metrics circumventing brand equity are directly tied to sales performances. If cognate to the financial value of your brand, are incrementing your revenue is liable to be moving in the same direction.
Output is measure of marketing activity, which quantification the marketing materials that get relinquished to the public. Out optically canvasses how often marketing materials are relinquished, and the type of asset relinquished to the place.
Brand reinforcement and revitalization
Brand Reinforcement is all about maintaining brand equity; in other words, it is about ascertaining that the consumers do have the desired erudition structures so that the brands perpetuate having its compulsory sources of brand equity. This could be done by marketing activities that would assiduously carry the construal of the brand, to the consumers – which could be in form of brand vigilance and brand image. However, sometimes, even a well-designed reinforcement strategy fails for sundry reasons like emergence of incipient technology or competitors, vicissitude in customers’ taste and predilection, etc. In this situation, the brands need to revive their fortune by returning to their roots, to recapture the lost sources of equity.
According to Keller (2012), Brand reinforcement involves in following
Maintaining brand consistency – This avail to enhance brand’s positive reputation with customers. Brand consistency leads consumers to get familiarized with the brand and enhance their perception about brand uniqueness, resulting in brand reputation.
Protecting source of brand equity – Brand should always endeavour to bulwark the subsisting sources of brand equity, they should withal look for potentially puissant incipient sources of equity. However, there is very little need to deviate from a prosperous situating, unless the current situating is being affected by some internal or external factor which is making it less potent.
Fortifying vs Leveraging – Fortifying refers to enhancing brand equity in terms of vigilance and perception, whereas Leveraging refers to making money from a brand. Failure to fortify a brand might result in brand decay and there would be no leveraging from the brand anymore.
Fine – tuning supporting marketing program – This could be done through amending product cognate performance sodalities and non-product cognate imagery sodalities.
Requires either that lost sources of brand equity are recaptured, or that incipient sources of brand equity are identified and established. With a fading brand, the depth of brand cognizance is often not as much of a quandary as the breadth. Consumer incline to cerebrate of brand in narrow ways. Strategies to increment utilization of and find uses for the brand obligatory. Several different strategies designed to both acquire incipient customers and retain subsisting ones are possible. Adjustments in the branding program may involve bran consolidation of brand effacement and brand name changes.
Brand strategy and brand equity of Dunkin Donuts
Dunkin donuts is an American expeditious victuals company founded by Bill Rosenberg in Quincy in 1950. The distinct factors that the enable a comprehensive understandings of brand equity are detailed below. Dunkin donuts typically bases its messaging more round a “brand personality” than demographics, in apperception of the fact the people who buy its coffee and baked goods frequently share a prevalent posture. Dunkin donuts is authentically driven by people who view themselves as down to earth, proud to have things to do, are authentically authentic, and not driven by status. Its brand identify is tangible and appeals to the senses of different people. In the recent past, the company has designed logo and restaurant for a prevalent perception. This will avail customers to differentiate Dunkin donuts products from other products in Sri Lankan market.
Essentially, brand image is the subconscious picture of the brand that people develops. Withal, it determines customer’s prospects from the brand. Dunkin donuts has the image of ambrosial donuts and coffee.
Dunkin donut brand architecture comprises pluralistic, monolithic, and endorser. Secondly, in monolithic architecture, Dunkin donuts has a vigorous master brand staunchness which magnetizes customers to the restaurant. Thirdly, Dunkin donut has endorsed brand architecture because there is already subsisting market for the brand.
Branding issues and recommendation
When we bring Dunkin donuts to Sri Lanka we may have to face branding issues, though the product is already subsisting in market but customers not cognizant of the product. The issue that we may face when we implement this brand to Sri Lanka as follows, texture because there is already subsisting market for the brand.
Relatively high prices – customers will see our product as higher in price since they do not know about, the standard of the product.
Poor franchising relationships – this will lead our company to poor in quality and services
Product awareness – The customers not aware about the product
Employees do not the solid understandings of the brand consumer’s needs.
Every time a new brand manager arrives
Keep changing in Tax and internal political in environment
To sort out branding issues, we should engender brand guide to the employees and managers, and we require to circulate the brand guide to sales team, third party consultants, and potential partners. Once we establish our brand guidelines, make them active. Audit and update current branded materials to ascertain that the key match the incipient brand guide. Update the vigilance of the product in, webpages, convivial media, brochures, signage, presentation slides and videos. Our company should fixate on engendering values for others. People infrequently recollect what we verbalized or did, but they do recollect how me made them feel because engendering trust is the most paramount currency in present century. The customer should feel the genuineness of our accommodation and brand. If our accommodation is unique our brand will be solidified. Our company should provide the field predicated professionals namely, franchising professional, including a franchising manager, operation manager, filed marketing manager and trained staff. Customers out there with different culls for them we require to provide plenty of menu option to full fill their desiderata and wants, moreover location, our organisation should be in amicable and welcoming environment.
ConclusionThis assignment has endeavoured to review and integrate studies on brands and brand equity. Brands and brand equity plays main role in prosperous business. As per Kotler and Kevin theories, management will not be prosperous without prosperous brand strategy and brand equity. In additament, this assignment endeavoured to review different brand equity models and presented an amassment of models and definitions of brand equity. Moreover, considered several consequential brand equity models and can relegate these models to different sections.