Wednesday 19 December 2018

Brand equity – the strength of a brand

Marketing Management Courses.
In the face of intense competition, a strong brand is a clear differentiation, value, and continuous, the spearhead for the competitiveness of companies and very helpful in marketing strategy also stat that brand equity is the willingness of someone to continue using a brand or not. Measurement of brand equity is highly associate with fidelity and measurement section of new users become loyal.

Some understanding brand equity is:

    1. Brand equity is a set of assets and liabilities to the brand associate with a brand name and symbol, which increase or decrease the value of the given by a goods or services to the company or customers.

    2. The Brand equity or brand strength is the control exert by a purchase on brand, and, by virtue of this, the brand as an asset that can be exploit to produce revenue". This means that the brand equity or brand strength is the control of purchases using the brand, and, goodness of the brand, the brand as an asset which can be utilize to generate income.

    3. The Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or service.

This means that brand equity is a positive differentiation effect which can be known from the consumer response against goods or services.  So the brand equity is the power of a brand that can increase or decrease the value of the brand itself which can be known from the consumer response against goods or services sold.

The strength of a brand (brand equity) can be measure base on 7 indicators, namely:

  1. Leadership: the ability to influence the market, whether the price or non-price attributes.

  2. Stability: ability to maintain customer loyalty.

  3. Market: the power of brands to improve the performance of a store or distributor.

  4. Internationality: the ability of brands to come out of its geographical area or entry into a country or other area.

  5. Trend: brands are becoming increasingly important in the industry.

  6. Support: the magnitude of funds issue to communicate the brand.

  7. Protection: the brand had its legality.

Who adapt the theory for brand equity can be group into 5 Categories:

    • Brand awareness is the ability of a prospective buyer to recognize or recall that a brand is part of the category of a particular brand.

    • Brand awareness is the recognition and recall of a brand and its finding from other brands in the field".

    • This means that brand awareness is the recognition and memory retention of a brand and differentiation from other brands in the field.

So brand awareness is the ability of consumers to remember a brand and making it different when compare with other brands.

There are 4 levels of brand awareness, namely:

  1. Unaware of brand (not aware of the brand). Is the lowest level in the pyramid brand awareness, which consumers are not aware of the existence of the brand?

  2. Brand recognition (branding). Minimum Level of brand awareness. This is important at a time when a buyer chooses a brand at the time of purchase.

  3. The brand recall (memory retention back against brand). Memory retention back against brand base on the person's request to name a specific brand within a product class. This is term memory retention back without help, because it is different from the task of introduction, the respondent did not need to be assist to raise the brand.

  4. Top of mind (peak of the mind). When someone ask directly without the aid of memory retention and that person can mention one name brand, then the brand most widely mention first is the culmination mind. In other words, the brand is the main brand of various brands in the minds of consumers.

There are four indicators that can be use to find out how far the consumer is aware of a brand are:

  1. Recall that is how far consumer can remember when ask what brand remember.

  2. Recognition, namely how much consumers can recognize the brands include in certain categories.

  3. Purchase i.e. how far consumers will incorporate a brand into an alternative option when going to buy your product/service.

  4. Consumption i.e. how far the consumer is still considering a brand when you're using a competitor's product/service.

Perceive quality

Is define as the perception of the customers to the overall quality or excellence of a product or service with regard to the meaning of that expect.

Brand association

Is something related to the recall of a product.  These associations not only exist, but also have some degree of strength.  Attachment to a brand will be more powerful. When ground on a lot of experience or appearance to communicate it.

Brand loyalty

Is the measurement of a customer's loyalty to a brand?. Loyalty has levels as can be seeing in the picture below:

  1. The level of the most basic loyalty is buyers are not loyal or not at all interest in any brands offered. Thus, the brand plays a role in purchasing decisions. In General, the types of consumers such as this likes to switch brands or so-call consumer type switcher or price buyers (consumers paying more attention to prices in making a purchase).

  2. The second level is the buyers were satisfy with the products that are use. Or at least not to experience disappointment. Basically, there are no dimensional dissatisfaction reasonably sufficient. To push a change, especially when other brands switch over requires an additional fee. The buyer of this type can be call buyer type habits (habitual buyers).

  3. The third level contains people who are satisfy. But bear the costs of the transition (switching cost). In both time, money or risk with respect to an attempt to perform the turn to other brands. These groups usually referred to as the loyal consumers feel. The presence of a sacrifice when doing replacements to other brands. The buyer of this type is call a satisfy buyer.

  4. The Fourth Level is the consumers really like the brand. Consumer choice towards a brand ground on an association. Such as symbols, a series of experiences in using it, or a high quality impression. Buyers at this level is call the companion of the brand. Because there is an emotional feeling in love the brand.

  5. The top level is the loyal customers. The customers have a pride in finding or becoming a user of a brand. The brand is very important to customers both in terms of its functions. As well as the expression as to who the actual customers (committed to buyers).

Other proprietary brand assets

Are other things that are not include in the above category 4 but build brand equity.
Meanwhile, according to Kim and Kim (2004), brand equity includes the following 4 things, among others, brand loyalty, perceived quality, brand image, and brand awareness.

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