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Encyclopedia > Brand equity
It has been suggested that Brand extension be merged into this article or section. (Discuss)
This article is about the marketing concept. For the weekly supplement and Quiz, see The Economic Times

Brand equity is the value that customers and prospects PERCEIVE in a brand. It is measured based on how much trust a customer has in the brand. The value of a company's brand equity can be calculated by comparing the expected future revenue from the branded product with the expected future revenue from an equivalent non-branded product. The difference, usually profit, is how much customers TRUST the brand, and are willing to pay above and beyond the price for other competitive brands with lower value perceptions. This calculation is at best an approximation. This value can comprise both tangible, functional attributes (e.g. TWICE the cleaning power or HALF the fat) and intangible, emotional attributes (e.g. The brand for people with style and good taste). Image File history File links Mergefrom. ... Brand extension is a marketing strategy in which a firm that markets a product with a well-developed image uses the same brand name but in a different product category. ... A quiz is a form of game or mind sport in which the players (as individuals or in teams), attempt to answer questions correctly. ... The Economic Times, launched in 1961, is Indias largest financial daily and the worlds second largest financial daily after The Wall Street Journal, with a daily readership of over 650,000 copies. ... A brand includes a name, logo, slogan, and/or design scheme associated with a product or service. ...


Positivity

Brand equity cannot be negative. Positive brand equity is created by effective marketing - advertising, PR and promotion in all forms, and the ability of the brand's performance to consistently maintain customer relationships -- trust.


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. Family branding is a marketing strategy that involves selling several related products under one brand name. ... Individual branding is the marketing strategy of giving each product in a product portfolio its own unique brand name. ...


Examples

In the early 2000s, 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, and Ford announced record losses. In a surprise announcement, the discarded Taurus nameplate would be re-used on an improved Five Hundred which had dissapointing sales and whose nameplate was recognized by less than half of most people, but an overwhelming majority was familiar with the Taurus. “Ford” redirects here. ... The Ford Explorer is a mid-size sport utility vehicle sold in North America and built by the Ford Motor Company since 1990. ... The Ford Windstar was a minivan produced and sold by the Ford Motor Company from March 1994 (for the 1995 model year) to 2003. ... The Ford Freestar was a minivan made by the Ford Motor Company, manufactured until November 2006. ... The Ford Taurus is a mid-size, front wheel drive car manufactured by the Ford Motor Company in North America. ... The Ford Five Hundred (code name D258) was a full-size sedan produced by the Ford Motor Company during the 2005 to 2007 model years. ... The Ford Freestar was a minivan made by the Ford Motor Company, manufactured until November 2006. ... Ford Fusion is a name used on two different types of cars from the Ford Motor Company. ...


See also


  Results from FactBites:
 
Strategic Marketing And Research Techniques - Brand Equity & Image (436 words)
The brand is a distinguishing name and/or symbol (logo, trademark, or package design) intended to identify the origin of the goods or services — and to differentiate those goods or services from those of competitors.
A brand signals to the customer the source of the product — and protects both the customer and producer from competitors who would attempt to provide products that appear to be identical.
Brand equity is initially built by laying a foundation of brand awareness — eventually forming positive brand images — and is ultimately maximized by high levels of brand loyalty:
Brand Equity Research! | Brand Equity Research for B2B, CPG, and Industrial Firms | Power Decisions Group — San ... (576 words)
Brand equity research studies that our firm designs and conducts vary depending upon your company, business unit, or corporate objectives and the decisions that are driving the interest in brand awareness and equity research.
Brand equity market research methodology is straight-forward and our portfolio of marketing research tools and methods provide the needed range of measurements.
While most brand equity research studies are viewed as quantitative market research tasks, we may recommend qualitative research if the goals include an exploratory research assessment or evaluation of brand naming alternatives.
  More results at FactBites »

 

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