Page 149 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes
Figure 6.5: Brand Equity Model
Brand name Brand
awareness loyalty

Brand
Equity

Perceived Brand
quality associations

According to Kevin Lane Keller, the challenge that marketers face in building strong brands is
to make sure that customers get the right type of experiences with brands of products and
services, and to ensure the brand’s related marketing programmes evoke the desired thoughts,
feelings, images, beliefs, perceptions, opinions, values, etc. To build positive brand equity, a
brand needs to be managed carefully. David A. Aaker says, besides actual proprietary assets
such as patents and trademarks, the four major elements underlying brand equity are brand
awareness, a brand’s perceived value, positive associations with a brand, and brand loyalty
among consumers. These tasks require continued investment and focus on R&D, effective
advertising, and excellent consumer and trade service. Very old but excellently managed brands
seem to be eternal and defying the concept of brand life cycle.

Example: Lifebuoy, Dettol, Lux, Bournvita, Colgate, Coca-Cola, and Gillette, P&G believe
that well-managed brands are not subject to brand life cycle.

Walfried Lasser, Banwari Mittal, and Arun Sharma identified five dimensions of customer-
based brand equity:
1. Performance: The aspect of brand equity focuses on the physical and functional attributes
of a brand. Customers are concerned about how fault free and durable the brand is, based
on their judgement.
2. Social image: This focuses on what social image the brand holds in terms of its esteem for
customer’s social and reference groups.
3. Value: This refers to the customer’s value perception of the brand. This is the ratio between
what are the involved costs and the perceived delivered value.
4. Trustworthiness: This means the customer’s extent of faith in the brand’s performance,
quality, and service. This reflects reliability of the brand, that it would always take care of
customer’s interest and the people behind the brand can be trusted.
5. Identification: To what extent customers feel emotionally attached to the brand. Their
association with the brand is important because it matches their self-concept and aspirations.
This means psychological association with what the brand stands for in the customer’s
perceptions.

Task Consider any one iconic brand and write an article on the journey of the
brand, (since its origin till date).

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