In the field of marketing, Brand Equity means the value of a brand.
The concept of the value of a brand is very interesting and deeper than what it looks like. The generally accepted notion for a brand owner is that a well-known brand in the market will give more revenues and goodwill rather than the lesser known ones.
There have been multiple approaches and studies happened to understand the concept of brand value. Different fields of consumer and brands have given different definitions and ways to identify the brand value.
Many other types of research in the field have suggested that brand is one of the most important assets of a company as it can significantly help in improving the financial performance of the company. One of the many types of research, tools, concepts in brand equity is the Aaker Brand Equity Model.
His model viewed the brand equity as a combination of brand awareness , brand loyalty and brand associations, which then combines with each other to finally offer the value provided by a product or service. For Aaker, brand management begins with building up a brand identity, which is one of a kind arrangement of brand affiliations speaking to what the brand stands for and offers to consumers a desiring brand picture.
Aaker primarily sees brand identity as a combination of elements which fall under four perspectives:. Brand as Organization — it consists of organizational attributes, local workings versus global activities.
What is Brand Equity?
Brand as Person — it consists of brand personality and consumer brand relationships. Brand as Symbol — it consists of audio and visual imagery, metaphorical symbols and brand heritage. The motive of the Aaker Model is to help in making a brand strategy comprising of various brand components or patterns, in order to illuminate, advance and separate a brand from its rivals. An organization deliberately utilizes a few of these components to impart to the buyers what their brand stands for.
Aaker states that brand value is controlled by associated five components. This is essential for understanding the general picture of brand equity.
These components are Let us see below how this value is created in multiple ways Therefore, all in all, Aaker model provides a deep insight into this whole concept of brand equity and how to evaluate it.
The model can be used at various stages of marketing like improving the perception of a product performance, to increase the loyalty of customers towards a brand, and sometimes to differentiate from competitors as well.
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How Brand Equity Develops
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Brand Equity - Marketing Management Video Lecture by Prof. Vijay Prakash Anand
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