Brand Equity
2007/// 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)"