Wednesday, September 16, 2009

Brand Equity

Brand equity
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It has been suggested that this article or section be merged into Brand. (Discuss)
Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. And, at the root of these marketing effects is consumers' knowledge. In other words, consumers' knowledge about a brand makes manufacturers/advertisers respond differently or adopt appropriately adept measures for the marketing of the brand. The study of brand equity is increasingly popular as some marketing researchers have concluded that brands are one of the most valuable assets that a company has.
Content
1 Measurement
2 Positive Equity Only?
3 Examples
4 References
5 See also
Measurement
There are many ways to measure a brand. Some measurements approaches are at the firm level, some at the product level, and still others are at the consumer level.
Firm Level: Firm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible asset. For example, if you were to take the value of the firm, as derived by its market capitalization - and then subtract tangible assets and "measurable" intangible assets- the residual would be the brand equity.[7] One high profile firm level approach is by the consulting firm Interbrand. To do its calculation, Interbrand estimates brand value on the basis of projected profits discounted to a present value. The discount rate is a subjective rate determined by Interbrand and Wall Street equity specialists and reflects the risk profile, market leadership, stability and global reach of the brand[8].
Product Level: The classic product level brand measurement example is to compare the price of a no-name or private label product to an "equivalent" branded product. The difference in price, assuming all things equal, is due to the brand[9]. More recently a revenue premium approach has been advocated [4].
Consumer Level: This approach seeks to map the mind of the consumer to find out what associations with the brand that the consumer has. This approach seeks to measure the awareness (recall and recognition) and brand image (the overall associations that the brand has). Free association tests and projective techniques are commonly used to uncover the tangible and intangible attributes, attitudes, and intentions about a brand[5]. Brands with high levels of awareness and strong, favorable and unique associations are high equity brands[5].
All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used.
[edit] Positive Equity Only?
An interesting question is raised- can brands have negative brand equity? From one perspective, brand equity cannot be negative. Positive brand equity is created by effective marketing including via advertising, PR and promotion. A second perspective is that negative equity can exist. Looking at a political "brand" example, the "Democrat" brand may be negative to a Republican, and vice versa.
The greater a company's brand equity, the greater the probability that the company will use a family branding strategy rather than an individual branding strategy. This is because family branding allows them to leverage the equity accumulated in the core brand. Aspects of brand equity includes: brand loyalty, awareness, association, and perception of quality .
[edit] Examples
In the early 2000s in North America, the Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F". This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E". The Toronto Star quoted an analyst who warned that changing the name of the well known Windstar to the Freestar would cause confusion and discard brand equity built up, while a marketing manager believed that a name change would highlight the new redesign. The aging Taurus, which became one of the most significant cars in American auto history would be abandoned in favor of three entirely new names, all starting with "F", the Five Hundred, Freestar and Fusion. By 2007, the Freestar was discontinued without a replacement. The Five Hundred name was thrown out and Taurus was brought back for the next generation of that car in a surprise move by Alan Mulally. "Five Hundred" was recognized by less than half of most people, but an overwhelming majority was familiar with the "Ford Taurus".
[edit] References
^ Aaker, David A. (1991), Managing Brand Equity. New York: The Free Press
^ Keller, Kevin Lane (2003). “Brand Synthesis: The Multidimensionality of Brand Knowledge,” Journal of Consumer Research, 29 (4), 595-600
^ Leuthesser, L., C.S. Kohli and K.R. Harich (1995). “Brand Equity: The Halo Effect Measure,” European Journal of Marketing, 29 (4), 57-66.
^ a b Ailawadi, Kusum L., Donald R. Lehmann, and Scott A Neslin (2003). “Revenue Premium as an Outcome Measure of Brand Equity,” Journal of Marketing, 67 (October), 1-17
^ a b c Keller, Kevin Lane (1993). “Conceptualizing, Measuring, and Managing Customer-Based Brand Equity,” Journal of Marketing, 57 (January) 1-22
^ Lassar, W., B. Mittal and A. Sharma (1995). “Measuring Customer-Based Brand Equity,” Journal of Consumer Marketing, 12 (4), 11-19
^ a b Neumeier, Marty (2006). The Brand Gap: How to Bridge the Distance Between Business Strategy and Design, Berkekley, CA : New Riders Publishing.
^ Chu, Singfat and Hean Tat Keh (2006). “Brand Value Creation: Analysis of the Interbrand-Business Week Brand Value Rankings,” Marketing Letters, 17, 323-331
^ Aaker, David A. (1996), “Measuring Brand Equity Across Products and Markets,” California Management Review, 38 (Spring), 102-120.
[edit] See also
Brand management
Brand
Customer engagement
Equity (disambiguation)
Marketing
Product management
Brand Architecture
Brand extension
Threaded marketing
Visual brand language
Retrieved from "http://en.wikipedia.org/wiki/Brand_equity"






















ValueLink - Brand Equity Pyramid
A standard tool for understanding a brand’s associations to customers’ response. The strongest brands exhibit both “duality” (emotional and functional associations) and richness (a variety of brand associations or “equity” at every level, from salience to resonance).


Links
Strategic Brand Management - Soni Simpson Adjunct Professor, Stuart School of Business

http://www.stuart.iit.edu/courses/MC%20502/Fall2004/Classfiles/6th%20class%20Spring%20final%20case%20assignment.ppt










Product management
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This article does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (December 2006)

Marketing
Key concepts
Product / Pricing / PromotionDistribution / Service / RetailBrand managementAccount-based marketingMarketing ethicsMarketing effectivenessMarket researchMarket segmentationMarketing strategyMarketing managementMarket dominance
Promotional content
Advertising / BrandingDirect marketing / Personal SalesProduct placement / PublicitySales promotion / Sex in advertisingUnderwriting
Promotional media
Printing / Publication / BroadcastingOut-of-home / Internet marketingPoint of sale / Novelty itemsDigital marketing / In-gameWord of mouth
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The Wikibook Marketing has a page on the topic of
Product_Development
Product management is an organizational lifecycle function within a company dealing with the planning or marketing of a product or products at all stages of the product lifecycle.
Product management (inbound focused) and product marketing (outbound focused) are different yet complementary efforts with the objective of maximizing sales revenues, market share, and profit margins. The role of product management spans many activities from strategic to tactical and varies based on the organizational structure of the company. Product management can be a function separate on its own or a member of marketing or engineering.
While involved with the entire product lifecycle, product management's main focus is on driving new product development. According to the Product Development and Management Association (PDMA), superior and differentiated new products - ones that deliver unique benefits and superior value to the customer - is the number one driver of success and product profitability.[1]
Contents
[hide]
1 Aspects of product management
1.1 Product planning
1.2 Product marketing
2 See also
3 References
4 External links
//
[edit] Aspects of product management
Depending on the company size and history, product management has a variety of functions and roles. Sometimes there is a product manager, and sometimes the role of product manager is held by others. Frequently there is Profit and Loss (P&L) responsibility as a key metric for evaluating product manager performance. In some companies, the product management function is the hub of many other activities around the product. In others, it is one of many things that need to happen to bring a product to market.
[edit] Product planning
Defining new products
Gathering market requirements
Building product roadmaps, particularly Technology roadmaps
Product Life Cycle considerations
Product differentiation
more detail on Product planning
[edit] Product marketing
Product positioning and outbound messaging
Promoting the product externally with press, customers, and partners
Bringing new products to market
Monitoring the competition
more detail on Product marketing
[edit] See also
Technology roadmap
Brand management
Crossing the Chasm
Marketing management
Product (business)
Product catalogue management
Product documentation
Product lifecycle management
Product manager
Product marketing
Product planning
Requirements management
Software product management
Service product management
Product teardown
[edit] References
^ Kahn, Kenneth B. (Editor). The PDMA Handbook of New Product Development. Second Edition. Hoboken, NJ: John Wiley & Sons, 2005. ISBN 0-471-48524-1
[edit] External links
AIPMM: Association of International Product Marketing and Product Management
Retrieved from "http://en.wikipedia.org/wiki/Product_management"
Categories: Product management
Hidden categories: Articles lacking sources from December 2006 All articles lacking sources

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