MODULE-11

BRAND EQUITY MONITORING

OTHER
BRAND PROPRIETARY
PERCEIVED
ASSOCIATIONS BRAND ASSETS
QUALITY
BRAND
LOYALTY NAME
AWARENESS
BRAND EQUITY
Provides Value to Name Provides Value to
Customer By Enhancing Symbol Firm by enhancing:
Customer’s:
• Efficiency and
• Interpretation/process Effectiveness of
ing of Information Marketing Programs
• Brand Loyalty
• Confidence In the • Prices/margins
Purchase Decision
• Brand Extensions
• Use Satisfaction • Trade Leverage
• Competitive
Advantage 18

WHAT IS BRAND EQUITY?

Brand equity is a set of brand assets and liabilities linked to
a brand, its name and symbol that add to or subtract from
the value provided by a product or service to a firm and/or
that firm’s customers. For assets or liabilities to underlie
brand equity they must be linked to the name and/or

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symbol of the brand. If the brand’s name or symbol should
change, some or all of the assets or liabilities could be
affected and even lost, although some might be shifted to a
new name and symbol. The assets and liabilities on which
brand equity is based will differ from context to context.
However they can be usefully grouped into five categories:

1. Brand Loyalty
2. Name Awareness
3. Perceived Quality
4. Brand associations in addition to perceived quality
5. Other proprietary brand assets-patents, trademarks,
channel relationships, etc.

BRAND LOYALTY
It is a measure of a customers’ attachment towards a brand.
A highly brand loyal customer is unlikely to switch brands
even when faced with competitive offers providing superior
features at lower price or at greater convenience. Brand
loyalty has different levels starting from a non – committed
buyer going up to a highly committed buyer .High loyalty
among customers provides a sense of security to the brand
by offering assured consumer base. Besides highly loyal
customers are difficult to be wooed and act as deterrent to
competitive action. Loyal customers create a ‘pull effect’
by keeping the brand in demand, allowing the company to
bargain with channel members for favorable terms and
conditions.

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Brand Awareness

Customers prefer to buy a brand which is well known or at

least familiar to them. Brand awareness is related to the
ability of a potential buyer to recognize or recall that a
brand belongs to a certain product category. Brand
awareness levels range from being totally unaware to top of
the mind recall. A high level of awareness signal a well
established brand promising a degree of consistency in
quality and performance which enhances customers’
confidence in the brand. Besides, if a potential customer is
aware of a brand, there is a greater chance of the brand
being included in his/her consideration set.

Perceived Quality
Perceived quality is the consumers’ perception of the
overall quality or superiority of a product or service with
respect to its intended purpose, relative to alternatives.
Thus, it refers to its intended purpose, relative to
alternatives. Thus it refers to quality as interpreted by the
customers rather than what the brand actually delivers or is
supposed to deliver. High perceived quality motivates the
customer to purchase the brand. It enhances the prestige
associated with the brand. Even channel member take pride
in stocking the brand to build their ‘quality’ image.
Besides, it allows the company to adopt premium pricing

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and differentiate its offering. Further, a well regarded brand
possess the ability to extend to new product categories.

Brand Association

Brand association is anything linked in memory, to a brand.

With increase in number of exposures to a product /
service, strong links or brand associations are formed. A set
of associations result in formation of the brand image (that
is, the brands’ perception in consumers’ mind). Brand
associations are directly related to simplification of
consumers’ data processing and provides a cogent reason
for purchase. The brand image is used to position the brand
in consumer brands and efforts are to generate positive
attitude towards the brand. Associations are also provide a
basis for extension into new product categories, especially
those which are compatible with the existing brand image.
Brand associations may be related to the country of origin
(e.g. Coca-Cola and US), a celebrity or brand ambassador
(e.g., Shahrukh Khan and Santro Xing), product class
(Xerox with photo copiers) etc.

Other Proprietary Brand Assets

These include patents, trademarks and channel

relationships associated with the brand. A trademark refers
to name, symbol, logo, package design etc., which is
registered with a company. Trademarks provide legal

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protection to a brand and safeguard it from counter. Patents
can provide tangible basis of differentiation . e.g., L.G’s
door cooling technology helps to differentiate it from other
brands. A strong distribution network is an asset for any
company. Formation of close relationship with channel
members helps develops trust and provides a platform for
building the brand.

Conclusion: Brand Equity monitoring is gaining

importance in the present day scenario because a lot of
brands are going for acquisitions, mergers, trade-offs,
rebranding, repositioning etc. So in this context brand
valuation can create more impact and would be convenient
for the companies in their marketing strategies.

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