Brand Equity Flashcards
Brand Equity
● When you establish a name and it becomes a brand, it is said to have equity.
● It is said that the premium and reputable a brand can always command and dictate the competition in the market.
● The Benefits of Creating a Power Brand
● Buyers will not change no matter what the others offer because they already put a lot of trust in the brand.
● Buyers are satisfied and there’s no reason to change.
● Buyers are satisfied and would sacrifice just to get the brand Buyers value the brand and see it as a companion
● Customer creates a strong relationship on the brand.
Competitive Advantages of Brand Equity
● It Reduces marketing costs and expenses
● Can easily charge a premium price.
● Can easily introduce brand extensions and new products
● Can compete with others when it comes to price competition.
Advantages of Branding
● Easy for the business to trace problems and process orders because of its identity or attachment of brand in the product.
● It provide legal security to the product exclusivity offered by the company
● Provides an opportunity to develop loyal and profitable group of buyers
● It creates corporate image and identity.
● It reduces harm to company reputation if the brand fails due to its establish reputation.
The premium brand can command in the market and they usually dictate the level of competition in the market arena.
Value Proposition
What do power brands have that others don’t?
● A distinctive product
● Delivering brand promise
● Personality and presence
● Personality
a. Emotional bond with the customer
b. Generates relationships measurably stronger than ordinary brands
● Presence
c. Seem to be present everywhere, enforcing distinctiveness
d.Successful brand extensions
Brand managers companies need:
● Superior insight into customer needs
● Ability to devise product/services that powerfully meet those needs
● Agility to redefine its offering as those needs change
● Creativity to produce exciting and compelling advertising
Tangibles of strong brand:
● Shape
● Color
● Size
● Models
● Price
● Features
● Benefit
Intangibles of a strong brand:
● Company name
● Brand name
● Slogan and its underlying associations Perceived quality
● Brand awareness
● Customer base
● Trademarks and patents
● Channel relationships
● Customer loyalty
● Customer confidence
● Competitive advantage
aligns what it says about the brand in advertising with what it actually delivers and that’s how you will create a strong brand, delivering what you promise that lead to generation of enormous profits and expanding future strategic opportunities.
Brand reputation
