Exploring Brand Equity: Models and Strategies for Building Lasting Value

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What is Brand Equity?

Brand equity is the value added for products and services with customers. The way consumers think, feel, and react to a brand can be reflected in product prices, market share, and profits which mandate that Marketers and researchers use a variety of methods to study brand is desire for the subject. Consumer-centered approaches look at it from the perspective of the consumer—an individual or an organization—and recognize that the power of a brand is based on what consumers have seen, read, heard, learned, thought, and felt about the brand over time .

Brand knowledge has a unique effect on consumer responses to consumer brand equity and the marketing of that brand. A brand has equal consumer-based branding when consumers respond positively to a product and The brand times its way of marketing is familiar rather than unfamiliar. When customers do not respond favourably to a brand’s marketing activity under similar circumstances, a brand’s customer-based brand equity is negative. There are three main factors that equate consumer engagement with brands.

1-Brand equity results from differences in customer response. If there is no differentiation, then the branded product is primarily a commodity, and competition is likely to be based on price.

 2. Differences in responses result from consumers’ knowledge of the brand and from all the thoughts, feelings, images, experiences, and beliefs associated with the brand. Brands need to build strong, positive and unique brand associations with consumers, such as Toyota (trust), Hallmark (caring), and Amazon.com (convenience and wide choice).

 3. Brand equity is reflected in the perceptions, preferences, and actions associated with all marketing aspects of a brand. Hardware makes a lot of money.

Marketing Advantages of Strong Brands

Improved perceptions of product performance <————- >Greater trade cooperation and support
Greater loyalty <——————————-> Increased marketing communications effectiveness
Less vulnerability to competitive marketing actions <————-> Possible licensing opportunities
Less vulnerability to marketing crises < ———- —>Additional brand extension opportunities
Larger margins <———————–> Improved employee recruiting and retention
More inelastic consumer response to price increases <———–> Greater financial market returns
More elastic consumer <————————-> Response to price decreases
Reference-Marketing Management 15th Edition by Philip Kotler 

What is the Brand Equity Model?

Brand equity is the value a brand holds over its tangible assets. It encompasses the overall perception, association, and reputation that consumers have with a particular brand. Several models help to understand and measure brand equity.

 Keller’s Brand Equity Model:

Developed by marketing guru Kevin Lane Keller, this model emphasizes the importance of building a strong brand through a pyramid:

Brand Identity:

This forms the base of the pyramid, with brand salience (awareness), brand meaning (what the brand represents), brand response (how customers react to the brand), and brand resonance (deep association) and focuses on customers.The pyramid rises from developing brand awareness to building a deeper, emotional connection with customers.

Aaker’s Brand Equity Model:

This model, developed by David Aaker, identifies five elements of brand equity:

Brand Loyalty: How loyal customers are to a brand.

Brand Awareness: How brand is recognized and remembered.

Perceived Quality: How consumers perceive the quality of a brand’s products or services.

Brand association: The psychological association consumers have between specific attributes, benefits, or emotions of a brand.

Brand assets: Tangible and intangible brand assets that contributes to brand identity, such as patents, trademarks, and proprietary technology.

Brand valuation model of inter brand:

This model focuses on the economic value of the brand. It measures economic performance, the role of the brand in purchasing decisions, and its competitive strength in the industry.

Brand Resonance Model (Keller):

This model is based on the idea of ​​creating deeper relationships between brands and consumers. It progresses through four stages:

Identity: Creating brand awareness and association.

Meaning: Establishing a unique value proposition and positioning.

Response: Eliciting positive consumer responses and engagement.

Relationship: Fostering a strong, emotional connection and brand loyalty.

These models help companies understand and manage their brands, with the goal of increasing brand awareness, building customer loyalty, and increasing economic value each model offers a unique perspective on the components and strategies for achieving and maintaining strong brand equity.

CONCLUSION

Understanding brand equity is important for businesses seeking long-term success. Different models, such as Keller’s brand equity model, Aaker’s brand equity model, Inter-brand’s brand evaluation model, and Keller’s brand resonance model, provide a framework for understanding and measuring brand value

Together these models emphasize different aspects of brand equity, encompassing factors such as brand awareness, perceived quality, customer association, loyalty, economic impact, etc. emotional connectivity, loyalty a enhance, and ultimately increase the economic value of the brand Adopting these strategies can guide businesses to create their brand identity, resonate with their target audience, and they have competed in dynamic markets.

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