MET 470 Lecture Notes - Lecture 1: Brand Equity, Brand Awareness, Projective Test
22 May 2018
School
Department
Course
Professor
What is a brand?
Concept/elusive
Is a strategic M position (e.g. Walmart, Rolls-Royce)
It's a strategic device representing a position that has a pd in the M
How should brand equity be conceptualized?
Equity: the value the brand adds to the pd (old conceptualization)
the differential effect that a brand has on your behaviour
(some brands attract me when other repeal me)
you want to be associated with the brand, it defines yourself (e.g. buy a RR)
What is the objective of a brand?
Why do companies build brands? Because they want to add value to their pd
What is the purpose of a brand (the strategic intent)?
To differentiate the pd in a meaningful way that I am reaching my objective of adding value
Where does the word "brand" come from?
Scandinavian word: brandar (it means to burn in a mark)
Brand names can be based on:
People
Item
Object
Invention
How do brands add value through differentiation?
By offering the benefit of risk reduction (A versus B brand).
They differentiate themselves by offering a more compelling risk reduction
find more resources at oneclass.com
find more resources at oneclass.com
Additional thoughts1:
While we have visual and acoustic sounds, brands are invisible, they are an idea, a story.
They are a marker of invisible thoughts
The brand's equity is stored in consumer's heads
The equity you get as a manager is based on what the consumer is willing to give you in equity
And what would be the benefits to the seller be?
Always the same regardless if for profit or non profit
Ultimately its money/votes/donation
Brands negate risk for the buyer/seller
The benefit a brand offers is risk reduction: e.g. 2 suits, same price, one brand (start-up), other Boss
(proven track record) most likely you choose Boss because of the risk reduction
Other risks:
- Time risk (how long will it takes me to find the pd?)
- Quality risk (how will the pd perform?)
- Trust risk (will it still be available next year?)
So what is brand equity?
The differential effect that has a brand on consumer's behaviour
Where should brand equity be measured?
In consumer's heads
What is a positive/negative customer-based brand equity?
Negative: Tommy Hilfiger was hijacked by rappers who put a "distain" to the brand.
Its original customers did not want it wear it anymore.
How does brand equity manifest itself?
In the differential effect that brand knowledge has on consumer response to the brand
find more resources at oneclass.com
find more resources at oneclass.com
How is brand equity created?
By creating brand knowledge be?? through:
Brand awareness
Brand image
Brand equity is a function of what people know about the brand
how can brand awareness be characterized?
2 dimensions:
- Deeply aware of a brand
(depth: every time I think of a particular need (e.g. thirsty) the same brand comes to mind, e.g. Müller
Milch)
- Broadly aware of a brand
(breadth: ≠ osuptio situatios ad ou thik aout the sae ad: agai Mülle Milh
How can brand image be characterized?
The aggregate of all the associations (e.g. Channel)
3 dimensions:
- Strength (how strong is the association)
- Favourability (how favourable is the association to you)
- Uniqueness (how unique is the brand)
Conceptual model of lecture to date:
Brand knowledge is driving this notion of equity
When are brands most successful?
find more resources at oneclass.com
find more resources at oneclass.com
