sulaymani polytechniq universty

public relations and marketing

secand stage
marketing management

(Creating brand equity )

Prepared by :
chra mustafa kaka hama

Super vised by:

Dr. Abdul Qader

Introduction
In marketing, brand equity refers to the value of a brand and is
determined by consumers perecption of the brand. Brand
equity can be positive or negative. If consumers think highly of
a brand, it has positive brand equity.

On the other hand, if the brand consistently under-delivers, fails

to live up to consumer expectations, and generates negative
word of mouth, it has negative brand equity. Simply put, brand
equity is the reputation of a brand.

. Brand equity describes the level of sway a brand name has

in the minds of consumers, and the value of having a brand
that is identifiable and well thought of. Organizations
establish brand equity by creating positive experiences that
entice consumers to continue purchasing from them over
competitors who make similar products.

Brand equity is what exists in your mind (or doesn’t yet exist) to
help you recognize these branded images and phrases. Brand
equity is also the set of positive, negative, or neutral thoughts,
beliefs, and emotions you associate with each of the
brands. Brand equity can manifest itself in consumer
recognition of logos or other visual elements, brand language
associations, consumers’ perceptions of quality, and
consumers’ perceptions of value or other brand attributes.

For any given product, service, or company, brand equity is

considered a key asset because it gives meaning to the brand
in the minds of its consumers. Brand equity can help a strong
brand remain relevant and competitive in the marketplace, and
it can help brands and companies weather storms that threaten
their value and existence. Volkswagen, for example, is hoping
that the strong brand equity it built during the decades
before the 2015 emissions scandal will help restore customer
confidence in its company and product brand.
How to Build Brand Equity

There are obvious payoffs to establishing brand equity, but it

takes a lot of work and research upfront to build and maintain
this status. It begins with conducting research into the values
and needs of a target audience, as well as identifying what
makes your brand different. Once established, organizations
must continue to spread awareness to earn new business,
while fostering loyalty among existing customers.

Understand Your Why

In Simon Sineck’s book Start with Why, he argues that

compelling organizations have a purpose behind their brand.
Too many advertisers focus on the How (How my product
will make your day easier) versus the Why (Why does this
organization do what it does). For companies like Apple,
their Why is immediately apparent. They defy the status quo
and stretch what’s possible. Because their advertising
focuses on their brand (and not their computers), they were
able to expand their product lines into new areas such as
phones and music, where other computer companies failed.

Test your Messaging

When creating messaging, it is still important to test your

positioning with consumers. How do they react? What do
they respond best to? Are you addressing their pain points?
Are you creating the type of message they will stop and
engage with? Developing messaging and creative
elements should be a data-driven process, informed by what
your specific consumers are drawn to. This is especially
crucial in today’s fragmented market.
Drive Awareness

Once you have a compelling message, you must drive

awareness for both your brand and your company focus.
This often means emphasizing brand values over product
attributes, and emotional connections over conversions. In a
world focused on the next immediate transaction, it can be
hard to advocate for such long-term planning. Brand
campaigns must run on longer timelines for consumers to
register messages and connect them back to branded
products. This increase on brand focus will yield to results
down the line if done correctly.

Maintain Consistency

Once your brand is established, be consistent. This includes

using consistent typefaces and style guides. Treat your
brand like a writer would treat a character. Even if the
advertising idea is good, if it is outside of your brand’s
“personality”, don’t pursue it.

Customer Experience

Due to the rise of social media and the individual consumer’s

voice, brands are no longer just defined by what
advertisements say. Brands are what consumers discuss or
perceive. Having a focus on the customer and putting them in
the center of your company will help elevate your overall
brand. Consider Amazon’s review system. The site
encourages users to be active in reviewing products and
communicating with sellers to ensure they get exactly what
they need - rather than just making a sale. When choosing
between immediate transactional value and the needs of the
customer, they choose the customer. Amazon understands
that taking this long-term approach to customer
experience will have a better impact on the bottom line.Social
media is also a great way to get face time, so to speak, with
your actual consumers. For example, Nike has a dedicated
Twitter page (NikeSupport) to respond to consumer needs 24
hours a day in seven languages. This provides insight into
where your brand may be missing the mark, which can then
be used for optimizations.

The Importance of Brand Equity

Marketing researchers have concluded that brands are

the crown jewels of a company. Brand equity provides
significant value to companies:

 Companies can charge a premium for products with lots of

positive brand equity (think of designer brands).

 Positive brand equity can be transferred to a different

product line, which in turn increases sales and revenues
for the company.

 Positive brand equity increases market share,as the brand

is widely known, recognized, and preferred by consumers.
Measuring Brand Equity
Brand equity is strategically important but also difficult to
measure (or “quantify”). As a result, many experts have
developed tools or metrics to analyze brand equity, although
there is no universally accepted way to measure it. For
example, while it can be measured quantitatively using
numerical values such as profit margins and market share, this
approach fails to capture qualitative elements such as prestige
and mental and emotional associations.

What to Measure
According to David Aaker, a marketing professor and brand
consultant, the following are ten attributes of a brand that can
be used to assess its strength, or equity:

1. Price premium: the amount a customer is willing to

pay for one brand in comparison to other comparable
brands

2. Customer satisfaction/loyalty: whether a customer

would buy the brand at the next opportunity, or remain
loyal to that brand

3. Perceived quality: perceptions about whether a

brand is of high, average, or inferior quality

4. Leadership/popularity: being in market leadership

position as a leading brand, a leader in innovation,
and/or growing in popularity

5. Value: perceptions of whether a brand has good value for

the money and whether there are reasons to choose it
over competitors
 6. Brand personality: distinctive, interesting, emotional,
and self-expressive benefits associated with a brand

7. Organizational associations: the people, values,

and programs associated with the brand

8. Brand awareness: the degree to which

customers are familiar with and have knowledge
about a brand

9. Market share: share of sales among the competitive

set

10. Market price and distribution coverage:measures

of average selling price relative to competitors and
how many people have access to the brand

Marketers can use various research methods to measure each

of these attributes. Some organizations invest in complex
marketing research projects to measure and track brand equity
over time using one or more of these metrics.

Example of Brand Equity

An example of a brand with high brand equity is Apple.
Although Apple’s products are very similar in terms of features
to other brands, the demand, customer loyalty, and company’s
price premium are among the highest in the consumer tech
industry. Apple ranks consistently as one of the most valuable
brands in the world. Apple’s brand equity is valued at upwards
of $250 billion.
Examples of Companies with High Brand
Equity

There are a few brands that stand out as those who have
mastered positive brand equity. These brands have achieved
consistent, identifiable design, unaided awareness, and, in
many cases, unwavering consumer preference over
competitors.

Apple Computer

In 1997, John Sculley, a former executive at Pepsi who went

to Apple, said to the Guardian, "People talk about
technology, but Apple was a marketing company. It was the
marketing company of the decade." In the 1990s, Apple
nearly went out of business. As Marc Gobe, author
of Emotional Branding, said “It goes beyond commerce. This
business should have been dead 10 years ago, but people
said we've got to support it.” This support comes from the
loyalty of Apple product users, so that when Steve Jobs
returned to Apple, there was a base for him to build upon.
As Simon Sinek said, “People don’t buy what you do. They
buy why you do it.” Many companies tried to make the switch
from computers to other products, but failed. They had spent
the majority of their time highlighting features (for example:
Gateway was certainly qualified to make flat screen TVs, but
their new products never caught on with the public.) Apple
on the other hand focused on the brand and its relationship
with the consumer. They dared consumers to challenge the
status quo right alongside them, so when they introduced
revolutionary products such as the iPod or iPhone,
consumers were eager instead of confused. Focusing on
brand creates customer relationships and unties a company
in a single direction.
Coca-Cola

Nowhere is the emphasis on brand more prevalent than in

the constant debate of Pepsi versus Coca-Cola. While Pepsi
shares may be higher due to its diversified portfolio, Coke still
outshines Pepsi in both companies’ key product lines. The
Pepsi Challenge campaign in the 1980s forced the Coca-
Cola company to take a look at their product line in one of
their marketing campaigns (The Pepsi Challenge). Coke
even sweetened their drinkto try to meet consumer demand,
but was faced with backlash. Coca-Cola began focusing on
its brand more so than the product. They emphasize how
Coca-Cola brings families together using relationships and
nostalgia (i.e. Share a Coke campaign). The brand
uses a logo, font, and color scheme that are immediately
identifiable.
We continue to see instances of brand over product today. In
fact, Adidas recently announced plans to move away from
short-term metrics to focus on overall brand health. The
brand’s Global Media Director called out the focus on short-
term and conversion-focused campaigns that are popular
now in order to deliver on quarterly earning expectations.
Their hope is to move away from this model, to use a 60/40
ratio of long-term brand building campaigns and short-term
conversion campaigns.

As demonstrated by these and other brands, establishing

positive brand equity can have a marked effect on the bottom
line. With this in mind, organizations should devote resources
to building out these campaigns with customer values and
experience in mind.
Refrences

1. http://www.iuc-
edu.eu/group/sem1_L3/2013%20DNPBM/Lecture%
2014%20Measuring%20Brand%20Equity.pdf
↵
2. http://young-rubicam.de/tools-
wissen/tools/brandasset-valuator/?lang=en↵

3. http://www.marketingprofs.com/chirp/2013/11338/
surprising-facts-about-customer-loyalty-
marketing-infographic#ixzz2wj6EeIlJ ↵

4. https://www.researchgate.net/publication/326302689_
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