Top 10 Concepts- Creating Brand Equity

Definition, Scope and Theories on Brand Equity
1. A Brand is a name, sign, symbol, design, or combination which is intended to identify a product or service to differentiate it from those of competitors’.
2. Branding is all about creating differences between products or services. It is applicable anywhere a consumer has a choice.
3. Brand Equity is an added value endowed on products or services. The value of a brand is reflected in how a consumer thing, feel and act about the product or service.
4. There are 3 different models in creating brand equity: Brand Asset Valuator, Aaker Model and the Resonance Model. All three starts with knowledge about a product and ends at the highest level of Brand Equity which is about being the best brand for a customer.
5. There are 6 elements that identify and differentiate a brand: memorable, meaningful, likable, transferable, adaptable and protectable.


Building a Strong Brand

6. For every new product, there are 3 major strategies in branding it; new elements can be developed, some or all of existing elements can be used or a combination of new and existing elements can be applied.
7. Brand Equity needs to be measure to be able to improve on it.
8. A Brand Portfolio is a set of brand or family lines that a company offers which attract customers who are seeking variety. It increases shelf presence and retail independence. It also encourages internal competition in the firm and helps processes become more efficient.
9. Brands could have 4 different roles in a Portfolio: Flankers, Cash Cow, Low-End Entry Level and High-End Prestige.
10. Customer Equity is the sum of lifetime values of all customers. Customers serve as the tangible profit engine for brands to monetize their brand value.