Managing Brand Equity

Topics: Brand, Branding, Brand management Pages: 45 (15723 words) Published: July 21, 2013
LT N G N G B P . 6 E Q U I 0 M A A A1 /I 9 9 • R A N D 5 – 1 0 T Y


Managing Brand Equity
The purpose of this study is to discuss and elaborate the main issues encountered in managing brand equity. In order to achieve this purpose, we first analyse the concept of brand equity; second, we provide a comprehensive framework for managing brand equity; and finally, we distinguish different ways to leverage and measure brand equity. The concept of brand equity emerged in the early 1990s. Brand equity can be regarded as a managerial concept, as a financial intangible asset, as a relationship concept or as a customer-based concept from the perspective of the individual consumer. The main asset dimensions of brand equity can be grouped into brand loyalty, brand awareness, perceived quality and brand associations. There are three alternative ways to leverage brand equity: first building it, second borrowing it, or third buying it. Brand equity can create advantages and benefits for the firm, the trade or the consumer. Key Words: Brands, Brand Equity, Brand Management

The historical evolution of brands has shown that brands initially have served the roles of differentiating between competing items, representing consistency of quality and providing legal protection from copying. Apart from providing the offering with the badge of its maker, thereby indicating legal ownership of all the special technical and other relevant features that the offering may possess, the brand can have a powerful symbolic significance. The brand can in itself imply status, enhance image and project or augment lifestyle so that the ownership of the

PEKKA TUOMINEN, Ph.D. (Econ. & Bus. Adm.) Turku School of Economics and Business Administration • e-mail:



brand becomes of value in its own right. Its accepted qualities can simplify the decision making process by reducing perceived risk while from the supplier’s perspective, it can not only assist in differentiating the offering, but also lead to brand loyalty, deter market entry and, well deployed, enable its owners to command higher prices and profit margins. (Bradley 1995, 522– 524; Egan – Guilding 1994, 450–453)

1.1 Different characteristics of brands
A brand is a name, term, sign, symbol, or design, or a combination of them intended to identify the goods or services of one seller from among a group of sellers and to differentiate them from those of the competitors. Thus, a brand identifies the seller or manufacturer. Under trademark law the seller is granted exclusive rights to the use of the brand name in perpetuity. This differs from other assets such as patents and copyrights that have expiration dates. If a company treats a brand only as a name, it misses the point of branding. The challenge in branding is to develop a deep set of meanings for the brand. Perhaps the most distinctive skill of professional marketers is their ability to create, maintain, protect, and enhance brands. (Kotler 1994, 444–445) Two principal approaches to branding can be identified: 1) manufacturer brands and 2) private label brands which are also called own label, distributor, retailer, dealer or store brands. Manufacturer brands usually contain the name of the manufacturer. These brands appeal to a wide range of consumers who desire good quality and a low risk of poor product performance. Manufacturers, which brand their products, face a decision of whether to use individual or family brands or a combination. Manufacturers sell their brands in many competing retail outlets, spend large sums on promoting them and frequently run co-operative advertisements with retailers so that costs can be shared. Recently, there has been considerable growth in private label brands, whereby channel members such as retailers are able to sell products using their own brand name or label. By doing so these retailers do not incur the...

References: AAKER, DAVID (1990) Brand Extensions: The Good, the Bad and the Ugly. Sloan Management Review 1990:4, 47–56. AAKER, DAVID (1991) Managing Brand Equity. Capitalizing on the Value of a Brand Name. Free Press: New York. AAKER, DAVID (1992) The Value of Brand Equity. Journal of Business Strategy 1992:4, 27–32. AAKER, DAVID (1996) Building Strong Brands. Free Press: New York. AAKER, DAVID – KELLER, KEVIN (1990) Consumer Evaluations of Brand Extensions. Journal of Marketing 1990:1, 27–41. AAKER, DAVID – KELLER, KEVIN (1993) Interpreting Cross-Cultural Replications of Brand Extension Research. International Journal of Research in Marketing 1993:1, 55–59. AAKER, JENNIFER (1997) Dimensions of Brand Personality. Journal of Marketing Research 1997:8, 347– 356. ARNOLD, DAVID (1992) The Handbook of Brand Management. The Economist Books: London. ASSAEL, HENRY (1992) Consumer Behavior and Marketing Action. Kent Publishing Company: Boston. BAGOZZI, RICHARD – ROSA, JOSE – CELLY, KIRTI – CORONEL, FRANCISCO (1998) Marketing Management. Prentice Hall: Upper Saddle River. BARWISE, PATRICK (1993) Brand Equity: Snark of Boojum? International Journal of Research in Marketing 1993:1, 93–104. BIRKIN, MICHAEL (1991) Brand Valuation. In: Understanding Brands, ed. by Don Cowley, 183–198. Kogan Page: London. BLACKETT, TOM (1991) The Valuation of Brands. Marketing, Intelligence and Planning 1991:1, 27–35. BOUSH, DAVID – LOKEN, BARBARA (1991) A Process-tracing Study of Brand Extension Evaluation. Journal of Marketing Research 1991:1, 16-28. BRADLEY, FRANK (1995) Marketing Management. Providing, Communicating and Delivering Value. Prentice Hall: London. BRONIARCZYK, SUSAN – ALBA, JOSEPH (1994) The Importance of the Brand in Brand Extension. Journal of Marketing Research 1994:5, 214-228. BURTON, SCOT – LICHTENSTEIN, DONALD – NETEMEYER, RICHARD – GARRETSON, JUDITH (1998) A Scale for Measuring Attitude Toward Private Label Products and an Examination of Its Psychological and Behavioral Correlates. Journal of the Academy of Marketing Science 1998:4, 293–306. de CHERNATONY, LESLIE (1993) Categorizing Brands: Evolutionary Processes Underpinned by Two Key Dimensions. Journal of Marketing Management 1993:2, 173–188. 98 de CHERNATONY, LESLIE – DALL’OLMO RILEY, FRANCESCA (1998a) Defining a ”Brand”: Beyond the Literature with Experts’ Interpretations. Journal of Marketing Management 1998:5, 417–443. de CHERNATONY, LESLIE – DALL’OLMO RILEY, FRANCESCA (1998b) Modelling the Components of the Brand. European Journal of Marketing 1998:12, 1074–1090. de CHERNATONY, LESLIE – DALL’OLMO RILEY, FRANCESCA – HARRIS, FIONA (1998) Criteria to Assess Brand Success. Journal of Marketing Management 1998:7, 765–781.
de CHERNATONY, LESLIE – MCDONALD, MALCOLM (1992) Creating Powerful Brands. The Strategic Route to Success in Consumer, Industrial and Service Markets. Butterworth-Heinemann: Oxford. de CHERNATONY, LESLIE – MCWILLIAM, GIL (1990) Appreciating Brands as Assets Through Using a Two-Dimensional Model. International Journal of Advertising 1990:2, 111–119. CHRISTOPHER, MARTIN – PAYNE, ADRIAN – BALLANTYNE, DAVID (1991) Relationship Marketing. Bringing Quality, Customer Service and Marketing Together. Butterworth-Heinemann: Oxford. CRIMMINS, JAMES (1992) Better Measurement and Management of Brand Value. Journal of Advertising Research 1992:4, 11–19. DEKIMPE, MARNIK – STEENKAMP, JAN-BENEDICT – MELLENS, MARTIN – ABEELE, PIET (1997) Decline and Variability in Brand Loyalty. International Journal of Research in Marketing 1997:5, 405–420. DICKSON, PETER (1994) Marketing Management. The Dryden Press: New York. DOYLE, PETER (1998) Marketing Management and Strategy. Prentice Hall: London. DUNCAN, TOM – MORIARTY, SANDRA (1997) Driving Brand Value. Using Integrated Marketing to Manage Profitable Stakeholder Relationships. McGraw-Hill: New York. DUNCAN, TOM – MORIARTY, SANDRA (1998) IT’s Role in Managing Relationships and Building Brands. In: Proceedings of the 6th International Colloquium in Relationship Marketing, ed. by Rod Brodie, 164–172. Publications of the University of Auckland: Auckland. EGAN, COLIN – GUILDING, CHRISTOPHER (1994) Dimensions of Brand Performance: Challenges for Marketing Management and Managerial Accountancy. Journal of Marketing Management 1994:6, 449– 472. FARQUHAR, PETER – HERR, PAUL – FAZIO, RUSSELL (1990) A Relational Model for Category Extensions of Brands. Advances in Consumer Research 1990:17, 856–860. FARQUHAR, PETER – IJIRI, YUJI (1993) A Dialogue on Momentum Accounting for Brand Management. International Journal of Research in Marketing 1993:1, 77–92. FARQUHAR, PETER (1990) Managing Brand Equity. Journal of Advertising Research 1990:4, RC7–RC12. HANKINSON, GRAHAM – COWKING, PHILIPPA (1993) Branding in Action. Cases and Strategies for Profitable Brand Management. McGraw-Hill: London. IND, NICHOLAS (1997) The Corporate Brand. Macmillan: Basingstoke. JONES, JOHN (1986) What’s in a Name? Advertising and the Concept of Brands. Gower Publishing: Aldershot. KAMAKURA, WAGNER – RUSSELL, GARY (1993) Measuring Brand Value with Scanner Data. International Journal of Research in Marketing 1993:1, 9–22. KAPFERER, JEAN (1992) Strategic Brand Management. New Approaches to Creating and Evaluating Brand Equity. Kogan Page: London. KEEGAN, WARREN – MORIARTY, SANDRA – DUNCAN, THOMAS (1995) Marketing. Prentice Hall: Englewood Cliffs. KELLER, KEVIN – AAKER, DAVID (1992) The Effects of Sequential Introduction of Brand Extensions. Journal of Marketing Research 1992:1, 35–50. KELLER, KEVIN (1993) Conceptualizing, Measuring and Managing Customer-Based Brand Equity. Journal of Marketing 1993:1, 1–22. KELLER, KEVIN (1998) Strategic Brand Management. Building, Measuring, and Managing Brand Equity. Prentice Hall: Upper Saddle River. KERIN, ROGER – SETHURAMAN, RAJ (1998) Exploring the Brand Value-Shareholder Value Nexus for Consumer Goods Companies. Journal of the Academy of Marketing Science 1998:4, 260–273. KOTLER, PHILIP (1994) Marketing Management. Analysis, Planning, Implementation and Control. Prentice Hall: Englewood Cliffs. LOKEN, BARBARA – JOHN, DEBORAH (1993) Diluting Brand Beliefs: When Do Brand Extensions Have a Negative Impact? Journal of Marketing 1993:3, 71–83. MCWILLIAM, GIL (1993) The Effect of Brand Typology on Brand Extension Fit. European Advances in Consumer Research 1993:1, 485–491. MOORE, JERI (1993) Building Brands Across Markets: Cultural Differences in Brand Relationships within the European Community. In: Brand Equity & Advertising. Advertising’s Role in Building Strong Brands, ed. by David Aaker – Alexander Biel, 31–49. Lawrence Erlbaum Associates: Hillsdale. 99
PARK, WHAN – MILBERG, SANDRA – LAWSON, ROBERT (1991) Evaluation of Brand Extensions: The Role of Product Feature Similarity and Brand Concept Consistency. Journal of Consumer Research 1991:2, 185–193. PARK, WHAN – SRINIVASAN, VERN (1994) A Survey-Based Method for Measuring and Understanding Brand Equity and Its Extendibility. Journal of Marketing Research 1994:2, 271–288. PEARSON, STEWART (1996) Building Brands Directly. Creating Business Value from Customer Relationships. Macmillan: Basingstoke. RANGASWAMY, ARVIND – BURKE, RAYMOND – OLIVIA, TERENCE (1993) Brand Equity and the Extendibility of Brand Names. International Journal of Research in Marketing 1993:1, 61–75. ROUX, ELYETTE – LORANGE, FREDERIC (1993) Brand Extension Research: A Review. European Advances in Consumer Research 1993:1, 492-500. SAMUELSEN, BENDIK – SANDVIK, KÅRE (1997) The Concept of Customer Loyalty. In: 26 th EMAC Conference Proceedings, Volume 3. Marketing: Progress, Prospects and Perspectives, ed. by David Arnott, Susan Bridgewater et al, 1122–1140. Publications of the University of Warwick: Coventry. SATTLER, HENRIK – ZATLOUKAL, GRIT (1998) Success of Brand Extensions. In: 27th EMAC Conference Proceedings. Marketing: Research and Practice. Track 4. Marketing Management and Communication, ed. by Per Andersson, 97–107. Publications of the Stockholm School of Economics: Stockholm. SAUNDERS, JOHN (1990) Brands and Valuations. International Journal of Advertising 1990:2, 95–110. SULLIVAN, MARY (1992) Brand Extensions: When to Use Them? Management Science 1992:6, 793–806. SUNDE, LORRAINE – BRODIE, RODERICK (1993) Consumer Evaluations of Brand Extensions: Further Empirical Results. International Journal of Research in Marketing 1993:1, 47–53. SWAIT, JOFFRE – ERDEM, TULIN – LOUVIERE, JORDAN – DUBELAAR, CHRIS (1993) The Equalization Price: A Measure of Consumer-perceived Brand Equity. International Journal of Research in Marketing 1993:1, 23–45. VAN RAAIJ, FRED – SCHOONDERBEEK, WIM (1993) Meaning Structure of Brand Names and Extensions. European Advances in Consumer Research 1993:1, 479–484.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Brand equity Essay
  • Brand Equity Essay
  • Brand Equity Essay
  • Note on Measuring Brand Awareness, Brand Image, Brand Equity and Brand Value Pierre Chandon Essay
  • Strategic Brand Management Essay
  • Essay on Brand Management Summary
  • Essay about Brand Management Summary

Become a StudyMode Member

Sign Up - It's Free
Social Networking Tools | Charles 'Buddy' Rogers | X-Men.2000.4K.HDR.2160p.BDRip Ita Eng x265-NAHOM