Brand Equity
/// Filed in: Marketing
Brands have
immense value to firms. They are critical to differentiate the
company's products and services and protect them against becoming a
commodity. It is important to distinguish between name recognition
and brand equity. McKinsey distinguishes between: 1) Names -name
recognition, 2) Brands -names become brans when consumers associate
a set of intangible and tangible benefits to the product/firm, and
3) Power Brands -brands that create strong emotional bonds, strong
associations, customer loyalty, and yield price premiums. Power
brands have personality, presence, and create strong
emotional/psychological bonds.
Brand equity requires differentiation and a strong alignment between what the company communicates about the brand with what it actually delivers. Having a powerful brand is critical to protect the firm and customers against imitators.
Aaker notes that brands have assets and liabilities associated with them. These can be related to 1) customer loyalty, 2) name recognition, 3) perceived quality, 4) brand associations in addition to perceived quality, and 5) other proprietary brand assets. Important points to consider include the trade dress, design patents, trademarks, copyrights, and other IP protection.
References:
[1] Doyle, "Marketing Management & Strategy"
[2] Aaken, "Building Strong Brands"
[3] Aaken, "Brand Leadership"
[4] Chong, "International Marketing Study Guide -- U.London (External)"
Brand equity requires differentiation and a strong alignment between what the company communicates about the brand with what it actually delivers. Having a powerful brand is critical to protect the firm and customers against imitators.
Aaker notes that brands have assets and liabilities associated with them. These can be related to 1) customer loyalty, 2) name recognition, 3) perceived quality, 4) brand associations in addition to perceived quality, and 5) other proprietary brand assets. Important points to consider include the trade dress, design patents, trademarks, copyrights, and other IP protection.
References:
[1] Doyle, "Marketing Management & Strategy"
[2] Aaken, "Building Strong Brands"
[3] Aaken, "Brand Leadership"
[4] Chong, "International Marketing Study Guide -- U.London (External)"