“HEY PEOPLE, STOP! STEP IN, AMAZING WAYS TO UNDERSTAND BRAND EQUITY”
written by VIGNESHWAR JAYARAMAN
what makes customer or consumer to recognize a brand or a product in the market. Absolutely yes, the advertising and promotions as a part of IMC campaigns to make consumers get familiar with the brand, brand valuation and brand equity which is referred to as the intangiable marketing. So, before getting into IMCs and digital marketing techniques, let’s go through the pages and grasp what does the Brand Equity means.
Let us get into the concept of Brand equity. Okay what is brand equity? Formally lets look for the definition,
DEFINITION: The equity of the brand or the communication of the brand can be conveyed through LOGOS, SOUNDS, COLOURS and IMAGES etc. The main objective of the brand is to CREATE VALUE for the consumers, BUILD STRONG RELATIONSHIP with the consumers and to CAPTURE VALUE which is known as “Brand Equity”
So we had a look at the definition, though folks what is brand equity and brand valuation from the aspect of customer, how he/she looks a brand. According to customer, a brand is a representation of a product they look for. A step ahead, people look for the personal connect with the product or brand which is referred to as brand perception or feelings. Say like some people buy royal enfield bikes only for the engine sound, etc.
Now friends, we drive into a model developed by Dr. David Aaker to explain Brand Equity,
The model was given in the form of pyramind which indicates the equity to the Brand valuation from bottom to top in a fabulous way. this model also gives us an idea of the Brand equity and what does that meant to be both in the aspect of company and the customer. Let me explain the things for better understanding ,
Introduction of a brand and the strategic message of the brand to the market by salient features. in simple words, the product or the Brand projects “who are they” to the market. EXAMPLE: Releasing depth and breadth of the products.
The brand creates its identity to the market through some strategic messages by means of captions, Logos, images and Jingles. the way that makes customers to recognizing the brand. EXAMPLE: Airtel’s music making people to recognize the brand without seeing visuals.
The abstract view of the brand in the market, in other ways the messages and equations that the brand projects to the market. Also indicates the customers view on the brand. EXAMPLE: Campaigns and promotions the brand uses to express themselves to the market.
Okay, the brand has established themselves to the market. What does it do next, to extend its market existence. Fine, every brands exists, but what makes a brand to stand still in the market for years is the thing that indicates the performance of the brand. EXAMPLE: Customers confirms the brand through sampling, testing and brouchers etc.
The equity and valuation is what a brand utmost establish to the market to capture the value and retain the customers. people gets personal connect with the brand that would be the reason why they buy products or getting loyal to the brands. This perception is said to be the personal feeling they get towards the brand. EXAMPLE: Customers buy bikes or cars which would connect to them or match their personality, especially Bullets and Racing motors.
The coagment of a product or a brand by the way it proceeds in the market, the core value it outputs to the customers and the way the brand carry their valuation to all the economic aspects. EXAMPLE: Performance of a particular brand in the market, say Apple.
RESONANCE or RELATIONSHIP
once the brand has been established in the market, the players are set to maintain the customers, loyalty and satisfactory level of the consumer. EXAMPLE: Prime brand like Maruti Suzuki adopts maintainence market plan to sustain.
And hence, the brand equity and brand valuation has an connect with the product life cycle say the development, introduction, growth, maturity and decline. Each part of brand equity pyramid potrays the each stages in the PLC.
RATING THE PERFORMANCE
Companies and consumer uses a methodology to calculate, rate or measure The Brand Equity and Brand Valuation say by
UTILITARY method which indicates the utility of the product, MEDONIC method which say conveys messages in a sensory manner and the last is the ECONOMIC method which means the price consumers willing to pay.
Now, lets have a look at a scenario for the better understanding,
In the above image, the listed products indicates the usage of the in a day, it is based on the brand perception of customers and also the way brands projected itself in the market. Here, T percepted to be only a breakfast drink whereas the C and P projected themselves to be all the drink, which means T has been consumed less during lunch and dinner.
HOW T’S PERCEPTION CAN BE CHANGED?
T can look for changing its perception by opting for an expansion of product line by bringing in different flavours and can be released changing the perception that it can also be consumed for lunch and dinner.
So folks, we had a look at what Brand Equity is and what values does a brand give to the customer. Following the introductory to the brand equity, we will meet up next with the IMC introductions. Hope this content helps readers a lot, i am fully responsible for the contents written. leave your valuable comments and feed backs which would be rectified.