Introduction
As a part of the coursework, it is required to make critical comparison of two methodologies on Brand Valuation in the first part of the coursework while the second part is about questionnaire based report. This coursework is going to make a comparison between Interbrand and Brand Equity evaluator models of Brand Valuation.
Part 1
Brand Equity
Brand Equity Valuation is one of the most modern areas for research in current marketing and Brand equity is frequently used in marketing that states significance of having a famous brand name, providing the idea that the owner of a well-known brand name can earn more money from the products than the products with a less famous name, as consumers believe that manufactured products
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Positive or negative effects: The organization, products, services, and bottom line can have benefit or suffer from brand equity.
Consumer catalysts: Brands are built by customers, not by companies. So, brand equity is built by customers too.
The additional money that consumers are willing to spend to buy Coca Cola rather than the store brand of soda can be an example of Brand Equity. In fact, there are 5 stages of brand experience that lead to positive brand equity:
1. Brand awareness: Consumers are aware of the brand.
2. Brand recognition: Customers are familiar with the brand and know what it offers against competitors.
3. Brand trial: Customers have tried the brand.
4. Brand preference: Clients like the brand and become repeat buyers. They start to build emotional connections to the brand.
5. Brand loyalty: Customers demand the brand and will take distances to find it.
Brand
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The older Interbrand model was based on four steps to determine brand value. Nonetheless, the old Interbrand method had some weak points such as the lack of a future orientation, because it was based only on historical data. Additionally, the arbitrary determination of the connection between brand strength and a brand value multiple in an S-curve based on the knowledge of the firm's experts was uncertain as well as the weighting of criteria. This old model was further improved and adapted to correct the weaknesses of the old model. On the other hand, the major idea of how brand value is generated did not
In every given business, the name itself portrays different meanings. This serves as the reference point and sometimes the basis of customers on what to expect within the company. Since personality affects product image (Langmeyer & Shank, 1994), the presence of brand helps in the realization of this concept. Traditionally, brand is a symbolic manifestation of all the information connected with a company, product, or service (Nilson, 2003; Olin, 2003). A brand is typically composed of a name, logo, and other visual elements such as images, colors, and icons (Gillooley & Varley, 2001; Laforet & Saunders, 1994)). It is believed that a brand puts an impression to the consumer on what to expect to the product or service being offered (Mere, 1995). In other application, brand may be referred as trademark, which is legally appropriate term. The brand is the most powerful weapon in the market (LePla & Parker, 1999). Brands possess personality in which people associate their experience. Oftentimes, they are related to the core values the company executes.
Branding is defined as “the promot[ion] of a product or service by identifying it with a particular brand” (Merriam-Webster, 2015). Branding is also used to create a corporate image or brand by utilizing logos, corporate statements, and other images that will be associated with or displayed on all of that company’s products (Wolak, 2002). A brand is a valuable, enduring asset that is essential in creating and maintaining competitive advantage in an industry (Wolak, 2002; Murphy, 1988). This corporate asset can be just as important as the product or service behind it, because it carries name recognition and peace of mind to customers in the purchase decisions they make everyday (Hall, 2008). Brands essentially work as a “shorthand device” for consumers to evaluate product decisions by conveying a message of uniform quality, credibility, and experience
Kevin Keller’s brand equity model is known as the Customer Based Brand Equity Model (CBBE). This model was first introduced in his book, Strategic Brand Management. According to the model, a company must shape how customers think, feel, and act towards a product in order to build a strong brand. A consumer must have the right type of experience around the brand, which foster positive thoughts, opinions, perceptions, beliefs and feelings. By building strong brand equity, customers will recommend company products and will buy more of them. Moreover, this increases brand loyalty and decreases brand switching to competitors. One’s memory consists of a network of associations and connecting links, and any association ever processed about a brand
Brands add emotion and trust to these products and services, thus providing clues that simplify consumers' choice. These added emotions and trust help create a relationship between brands and consumers, which ensures consumer loyalty to the brands.
way and improve the company’s brand name rather than dampen it. By doing so the
People are buying the product which gives them prestige. Marketers have interest on consumer psychology and they are playing with every day by showing that their product will give prestige in the society. It’s true that the transparent societies now needs brands image. Marketers analyze the interest and needs of consumer than create the product according to the need of the society. Brand can attain the people attraction and the business can have the good reputation by giving satisfaction to consumer. If the brand gives satisfaction and function are according to the expectation of consumer than the brand gets good image on the mind of consumer. brand image is great weapon to use for the competitors it builds in years , at once the business gets brand image it has competitive edge from other brands in the market. When consumer rely on the brand the company can create the long term relation with the consumer, in other words (CRM) consumer relationship management. The brand image has effect on the choice of every individual there believe and attitude change their preferences. Brand image can be effected by price as price is an important part for consumer when they are making purchase decision if they find the value of brand is equal to the pricing they purchase that brand if not they refuse it. Similarly the image of brand can be effected by the attributes and features or
Primary Objective: The wine market is very saturated and is a very successful high status symbol in the society. Despite the high profile of many international wine luxury brands, little is known about the processes by which these brands are created and maintained the main objective of the study is to understand the marketing practices in the wines industries/wineries and how these wine industries/wineries develop the brand equity of premium luxury wine brands.
Being able to make people feel a connection to a brand and have them recognize your name is one of the most important factors in getting people to buy your product and the more people buy, the more money is put back into our
Companies use a collection of brand equities to represent their products in the market (Voolnes, 2012). Brand equity refers to the commercial value that is derived from the perception of consumers on any given brand name of particular products in the market as opposed to the product itself. Ataman (2003) notes that the effect to the consumer is in the brand name and not the product itself. Companies use logos, trademarks and a collection of other symbols to present this information to the customers. The use of these symbols is meant to try and capture the customer mindset so that they can be thinking about the company products at all times through the items they possess at home (Estes, Gibbert, Guest, & Mazursk, 2012). This can well be explained by use of the customer-based brand equity model that brings together the requirements for a publicly renowned brand in the market.
Definition; - “brand equity is the added value endowed on products and services. It may be reflected in the way consumer think, feel, and act with respect to the brand, as well as in the price, market share and profitability the brand commands.”(Kolter and Keller.2012, p265) according to the case study of Holland and Barrett, brand equity refers to high brand value, brand with high value equity means, H&B has the ability to create some sort of positiv...
[5] Woon Bong Na, Roger Marshall, and Keller, K.L. (2000) Measuring Brand Power: Validating A Model For Optimizing Brand Equity.
The source of the brand features is in a connection between customers and companies that sell services or products. Consumers who choose a specific company fundamentally acknowledge to prefer that brand more than other brands rooted from the recognition of the brand’s worth.
Simon, C.J., & Sullivan, M. W. (1993). “The measurement and determinants of brand equity: A financial approach”. Marketing Science, 12(1), 28-52.
Secondly, some light has been thrown on the previous researches by various authors on the similar topics by providing with a summarised form of the same. It helps in better understanding of the ongoing concepts and perceptions on the concept of brand and its importance.
In conclusion, the customer- based brand equity model is an important platform that may help in building a strong brand. It could assist a company in assessing its progress as well as providing a blueprint for marketing research activities. If properly planned and implemented, it could help the company in achieving its marketing strategies and in the realization of an increased profit margin