How to build brand equity
II. What is brand equity?
• Definition: Brand equity
• Sources of brand equity
• Positive brand equity vs. negative brand equity
III. Creating brand equity
• Brand position
• How to create brand equity?
- Selecting brand elements
- Integrating with marketing activities
- Creating secondary brand associations
IV. Summary and Conclusion
In modern society, brands play an increasing vital role in marketing. With the fury market competition and the increasing homogeneity of products , brands act as a powerful strategic weapon to win in the market competition. At the same time, brand equity, as one of the most valuable intangible asset, has become a more and more heated topic.
Before broaching brand equity, we should have a clear understanding of brands. The evidences of the importance of brands have plenty. A strong brand not only brings a good reputation to a company but also boosts market shares and sales revenue.The identity of a brand can be a particular product, service or business(Aaker, 1991). A brand connects a series of mental associations with a product or service.,which gains the perceived value. There are many kinds of forms on brand, comprising name, design, slogan, signature and so forth. The aim of a brand is to be different from other competitors in the marketplace.
A strong brand is the most valuable assets of an organization. If the brand is well accepted in customers' mind, it means this brand can gain great value. As an intangible asset, brand equity has taken up the more and more proportions of the total assets. Brand equity started from 1980s and rapidly became one of the focus problems of marketing strategy. In this essay, we untangle and review several significant definitions about brand equity. More importantly, how to create brand equity will be paid more attention. At the same time, a number of instances are combined along with it.
I. What is the brand equity?
The concept of brand equity, which emerged in the 1980s, was first appeared by advertising agency and then in wide use.There are many different definitions about brand equity ,but a common viewpoint has not appeared. Lassar et al describe brand equity is that the perceived function and expectation of a product is strengthened by a brand name(Lassar et al ,1995). Alan Mitchell represents that brand equity stores future profits that come from former marketing activities(Mitchell,2000). Farquhar thinks it is added value and benefits that the brand brings to products(Farquhar,1989). In the early 1990s, Aaker published , which had significant effects on the research of brand equity. Aaker states brand equity reflects a set of brand assets and liabilities derived from the brand name or logo of the product can be added or cut down by the value provided by a product or service to consumers(Aaker, 1991).
In modern brand theory, brands closely links with consumers. Therefore, from a customer perspective, Kevin Lane Keller, the E. B. Osborn Professor of Marketing at the Tuck School of Business at Dartmouth College, proposes the particular concept of customer-based brand equity, which runs through this essay. Keller describes: "Customer-based brand equity is the differential effect that brand knowledge has on consumer response to the marketing of this brand." ( kevin lane Keller,2008. Strategic Brand Management)
The definition includes three factors: differential effect, brand knowledge, consumer response to marketing.(Keller,2008). Initially, the advent of brand equity is the different reaction from consumers. Then the different reaction originated from brand knowledge delivered by brand awareness and image. After that, the different reaction by consumers determines the selection in marketing.
Sources of brand equity
From the definition of brand...
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