A brand represents a “name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.” Without a recognizable brand, a product is but a mere commodity. It’s more than just a name, term, symbol, etc. – a brand is everything that one company’s particular offering stands for in comparison to other brands in a cate-gory of competitive products.
As the value, or equity, of a brand increases, various positive outcomes result: - achieving a higher market share
- increasing brand loyalty
- being able to charge premium prices
- earning a revenue premium, which is defined as the revenue differential between a branded item and a corresponding private labeled item
Brand equity exists to the extent that consumers are familiar with the brand and have favorable, strong, and unique associations with the brand. Brand equity has two main forms of consumer knowledge: brand awareness and brand image.
Brand awareness: when a consumer thinks about a product category and a brand name comes to mind. Awareness is the basic dimension of brand equity and has three dimensions: - Brand recognition: consumer is able to identify a brand if it is presented to them on a list or if hints/cues are provided. - Brand recall: consumer can retrieve a brand name from memory without any reminders. - Top-of-mind-awareness (TOMA): brand is first that consumer thinks of when asked about product category.
Brand Image: the types of associations that come to mind when contemplat-ing a particular brand. Brand Association is simply the particular thoughts and feelings that a con-sumer has about a brand. ▪ Associations can be based on attributes (product-related and non-product-related), benefits, and overall evaluation (atti-tude). ▪ Associations derived from brand benefits stem from functional, symbolic, or experiential needs. ▪ Four main...