In 2010, Coca-Cola has appeared at the top of the global brands with an estimate value of &78 billion. IBM has closely behind with 71$ billion. Despite those two businesses have totally different of business nature, these two firms have a significant common characteristic which is the value of their brand is extremely high. However, the value of branding isn’t only reveal in those two firms but the entire market has the common factors which are the most successful firm always has a high value of their brand. Branding is one of the critical enduring assets to a company which can be the name, term, design, symbol or any unique feature can be used to identify business. Kapferer (2008) suggest that branding is the most important factor to service industry as its instinctive uniqueness like inseparability, heterogeneity, perishability and tangibility. Furthermore, CEO of McDonald’s claimed that the value of brand is worth than any of their facility and equipment. It indicate that importance of branding is powerful assets which every of marketing manager would have carefully develop and manage. In this paper, we explore the importance of Brand Equity and any of the associated metrics. Brand Equity is the differential effect that knowing the brand name has on customer response to the product or its marketing. America Marketing Association has given a definition of brand equity, it suggests that “The value of a brand. From a consumer perspective, brand equity is based on consumer attitudes about positive brand attributes and favorable consequences of brand use.” Brand equity is a critical marketing component for building a successful business which gives advantages to increase the profit of the product or services depends on the various value of the brand. Ad agency Young and Rubicm’s Brand Assest Valuator measures brand strength along four consumer perceptions which are the differentiation, knowledge, relevance and esteem. 4 strategy in brand equity
Differentiation refers to the process to distinguish a product or services to your rivals. The purpose of approaching differentiation is to position your product to your potential customer which makes the product or services more attractive to a particular market, also, it can increase the competitive advantage of the products. Successful differentiation can possibly leads the firms to the monopolistic competition which means business has occupy a specify market area. In 2007, Apple introduced the first IPhone in the market; the success differentiation of the IPhone push Apple to become a one of the most successful company in the world. Though, multiple brands has starting introduced new smart phone gradually, Apple has still occupy a mount 25-35% of the market as their successful differentiate their product against their rivals. Moreover, in order to identify the nature of the product differentiation, firms can use some of the metrics to measure. Moreover, brand knowledge, also known as Brand awareness refers to the brands popularity toward firm’s potential consumers. Kevin (1993) declared Brand awareness is related to the functions of brand identities in consumers’ memory and can be reflected by how well the consumers can identify the brand under various conditions. Brand awareness is always the primary goal of advertising which include the brand recognition and recall performance. Larry and John (1992) claimed that Brand recognition refers to the capability for consumers to identify between new brand and consumer previous used brand. The primary objective isn’t to force consumer to recognise the brand names, it often means that consumers can response to a certain brand after viewing its visual packaging images. On the other hands,
brand recall refers the consumer’s ability to generate and retrieve the brand in their memory. Furthermore, brand relevance refers to how consumers feel its meets their needs. Aaker (2012) suggest that the...
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