Tag Archives: Brand equity

Because even we don’t know everything

Standard

Sometimes even creative professionals need a little more education.

We were sitting around yesterday discussing different ways to increase the long-term value for our clients brands. And during the meeting someone said, “so the question is: are there other ways, in addition to what we are doing, to measure brand equity?” To which one of team said, “Brand equity, is that like home equity?” Brand Equity Basics – it sounded like a great blog topic to me, at the time.

What is Brand Equity?

In a nut shell it is the difference between of benefits between having a brand name as opposed to not having one. When your brand is well-known enough then you can charge people more money, or premium prices, for your product. A few examples of brands that are able to sell at premium prices include; Nike, Adidas, Apple, Chiquita bananas, VW and TOMS. And a couple of non-name brands include companies like; Jewel Companies Generic Cola and Kroger’sNaturally Preferred. But even house brands are beginning to gain brand equity, like Boots skin care products being sold at Target in the US. However, in the ever-changing world of marketing even generic brands such as No Name Brand is growing brand equity and using it to increase prices for products.

What isn’t a Brand?

Because everyone seems to believe that they understand what a brand is – I thought it might be a good moment to write about what a brand isn’t. A brand isn’t a logo – according to Marty Neumeier – and that is a key thing to remember. That means that things like the Nike Swoosh, the 3-strips from Adidas, the golden arches of McDonald’s or the white apple from Apple is not a brand, but a logo. This is a key thing to remember and not get confused about.

How we attempt to measure Brand Equity?

A brand’s equity is ultimately derived from the actions and words of consumers. As marketing professionals we are constantly testing ways to effectively measure the value of a brand for stakeholders. There are three key levels for measuring a brand are at the corporate, product and consumer level.

Corporate level – This is where a firm makes a calculation regarding how much the brand is worth as an intangible asset.

Product level – This is a measurement where one compares the price of a no-name or private label product to an “equivalent” branded product. This is very difficult when you are attempting to predict the worth and achieve FMA.

Consumer level – Attempts to map the mind of the consumer to find out what associations with the brand the consumer has. In this case high brand equity is associated with strong and favorable high levels awareness.

Related Articles

Advertisements

Conversations with a MA Marketing Class – Their take-away (part 1 of 2)

Standard

The London Metropolitan UniversityLast week a member of the Newman Partnership, Ltd. spoke at London Metropolitan University. The topics included working in digital marketing and brand equity.

At the end of both of my lectures, one of my favorite professor’s noted some key things to take-away from the lectures.

For digital marketing my old professor reinforced my warning that digital marketing is a growing and developing field making it a very competitive work place. And how it is important to go online and begin using the tools and monitoring capabilities that are already available to students for free. These tools include: Wayback Machine, Google Analytics, Google Keywords, Google AdWords, LinkedIn, Xing.com and others. And how you need to not only know how to use these services but also to analyze the results. Secondly, that for many people it is truly important to find a field that they are passionate about. Because when it comes down to it we should at least enjoy and feel rewarded by the work that we are doing.

In the brand equity course, where I spoke about umbrella vs. individual branding, my professor friend summarized that there is no “easy answer” when choosing umbrella or individual branding. That each case is decided on an individual basis where the strengths and weaknesses of both options are weighed when looking to launch a new brand or product. Because sometimes brand equity can be hurt a firm if it is too closely related to it. And that individual branding can create safety for the firm if the products brand equity goes South, as it was with Sunny Delight.

Tomorrow we will post what the take-away was for the Newman Partnership, Ltd.