In 2010, Coca-Cola has appeared at the top of the global brands with an estimate value of &78 billion. IBM has closely behind with 71$ billion. Despite those two businesses have totally different of business nature, these two firms have a significant common characteristic which is the value of their brand is extremely high. However, the value of branding isn’t only reveal in those two firms but the entire market has the common factors which are the most successful firm always has a high value of their brand. Branding is one of the critical enduring assets to a company which can be the name, term, design, symbol or any unique feature can be used to identify business. Kapferer (2008) suggest that branding is the most important factor to service industry as its instinctive uniqueness like inseparability, heterogeneity, perishability and tangibility. Furthermore, CEO of McDonald’s claimed that the value of brand is worth than any of their facility and equipment. It indicate that importance of branding is powerful assets which every of marketing manager would have carefully develop and manage. In this paper, we explore the importance of Brand Equity and any of the associated metrics.
Brand Equity is the differential effect that knowing the brand name has on customer response to the product or its marketing. America Marketing Association has given a definition of brand equity, it suggests that “The value of a brand. From a consumer perspective, brand equity is based on consumer attitudes about positive brand attributes and favorable consequences of brand use.” Brand equity is a critical marketing component for building a successful business which gives advantages to increase the profit of the product or services depends on the various value of the brand. Ad agency Young and Rubicm’s Brand Assest Valuator measures brand strength along four consumer perceptions which are the differentiation, knowledge, relevance and esteem.
4 strategy in brand equity