Brand Equity

What is brand equity?

Brand Equity refers to marketing effects or outcome 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. (www.wikipedia.org)

Brand Equity is the combined measure of brand strengh and consist of knowledge, preferences and financial considerations. (www.brandingstrategyinsider.com)

Brand equity is created through aggressive mass marketing campaigns. Good examples of companies with strong brand equity are corporations such as Nike and Coca-Cola, whose corporate logos are recognized worldwide. (investopedia)

Ekuitas merek adalah seperangkat aset dan liabilitas merek yang berkaitan dengan suatu merek, nama dan simbolnya, yang menambah atau mengurangi nilai yang diberikan oleh suatu barang atau jasa kepada perusahaan atau pelanggan (Susanto dan Wijanarko, 2004)

translated: Brand equity is a set of assets and liabilities of a brand connected with brand, name or its symbols, which add or subtract the value perceived by a product or services towards comsumer.

Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or service (Kotler dan Armstrong, 2004)

my conclusion:
brand equity is the power of a brand (Names, logos, symbols) which affected the products or services value towards the consumer.

So why we need brand equity?

according to my knowledge, a brand is the face of a product (or services). So If a brand doesn't sound familiar / new to the market, it won't sell as good as established products. confused? lemme give an example, if wanted to buy home speakers, and you have the money, what would you choose? a set of "Onkyo" or "JBL"? the answres may varies, but i'm sure there will be a lot that answers "JBL", ok, now choose between "JBL" with "Infinity", i'm also sure there will still be a lot that answers "JBL". strange huh? why's that happenend? "infinity"'s quality is superior to JBL.

Because of JBL's brand equity.

By having a great positive brand equity, you will create:

Brand awareness
People knows your products.

Brand loyalty
Compared apple to apple, people will choose a product which they familiar with (ex: creative instead of Juli@).

Perceived quality
with a good brand, people tend to believe that that product/services is better than other brand (has standards they will always get) (ex: DHL vs TIKI)

Brand associations
if you have the ultimate brand (already around for enough time, rarely get complained, etc2 all the good stuff), people will associate a product/services with your brand. (ex 1: in indonesia: aqua - people often ask for aqua instead of air putih even if product says "fit", "aquaria", "2 tang" (all of mineral water products) people will not complain. ex2: in Indonesia: Sanyo, still a lot of people associates water pump with sanyo, so when you want to buy a water pump for your house, go to a pump store and say "I want to buy Sanyo" and people will understand, seriously)

OK, I'm interested now, tell me how to get that brand equity

to be continued, suddenly I feel lazy.
c ya around.

Saturday, September 12, 2009