THE 4 BRAND EQUITY MODELS ARE :
1. AAKER MODEL
2. KELLER'S MODEL
3. BAV MODEL
4. BRANDZ MODEL
1. AAKER MODEL
The Aaker Model, created by David A. Aaker, a marketing professor at the University of California-Berkeley and a management consultant at Prophet, is a marketing model which views brand equity as a combination of brand awareness, brand loyalty and brand associations, which add up to give the value provided by a product or service.
Aaker defines the brand equity as the set of brand assets and liabilities linked to the brand - its name and symbols - that add value to , or subtract value from, a product or service.
BRAND EQUITY = BRAND AWARENESS + BRAND LOYALTY + BRAND ASSOCIATION + PERCEIVED QUALITY
For Aaker, brand management starts with developing a brand identity, which is a unique set of brand associations representing what the brand stands for and offers to customers an aspiring brand image.
Aaker primarily sees brand identity as consisting of 8-12 elements which fall under four perspectives:
- Brand as Product - consists of product scope, product attributes, quality or value of the product, uses, users and country of origin.
- Brand as Organisation - consists of organizational attributes, local workings versus global activities.
- Brand as Person - consists of brand personality and consumer brand relationships.
- Brand as Symbol - consists of audio and visual imagery, metaphorical symbols and brand heritage.
The purpose of the Aaker Model is to help in creating a brand strategy consisting of different brand elements or patterns, so as to clarify, enrich and differentiate a brand from its competitors.
An organization carefully employs several of these elements to communicate to the consumers what their brand stands for.
2. KELLER'S BRAND EQUITY MODEL
THE KELLER MODEL HAS 4 LEVELS :
1. SALIENCE
- This level of the pyramid deals with establishing the identity of the brand. Keller suggests a single building block for this phase and terms it brand salience.
- To attain this level Keller suggests brand awareness , knowing the customers-their needs , wants, segmentation , USP of the brand.
2. PERFORMANCE AND IMAGERY
- The second layer of the pyramid deals with giving meaning to the brand and here Keller presents two building blocks: brand performance and brand imagery.
- Brand performance is the way the product or service attempts to meet the consumer’s functional needs. Brand performance also has a major influence on how consumers experience a brand as well as what the brand owner and others say about the brand.
- Delivering a product or service that meets and, hopefully, exceeds consumer needs and wants is a prerequisite for successful brand building.
- In communicating brand performance, Keller identifies five areas that need to be communicated: primary ingredients and supplementary features; product reliability, durability and serviceability; service effectiveness, efficiency and empathy; style and design; and price.
- Brand imagery deals with the way in which the brand attempts to meet customers’ psychological and social needs. Brand imagery is the intangible aspects of a brand that consumers pick up because it fits their demographic profile (such as age or income) or has psychological appeal in that it matches their outlook on life (conservative, traditional, liberal, creative,etc). Brand imagery is also formed by associations of usage (at work or home) or via personality traits (honest, lively, competent, rugged, etc).
3. JUDGEMENT AND FEELING
- Judgments about a brand emerge from a consumer pulling together different performance and imagery associations. These judgments combine into a consumer’s opinion of a brand and whilst there are multiple judgements that an individual can make.
- Judgements can be made about :
- Quality : Actual and perceived ,
- Creditability : The extent to which the brand is perceived as having expertise, being trustworthy and likable .
- Consideration :Brand must be unique, relevant to the consumer so that they are likely to purchase or use it.
- Superiority : Specialisation in brand.
- Brand must have positive feelings : Warmth , Excitement , Security , Social approval and self respect.
4. RESONANCE
- Resonance is characterized by the intensity of the psychological bond that customers have with the brand and their level of engagement with the brand.
- The challenge for the brand manager and strategist is to develop the bond and increase the number of interactions (repeat purchases of a product or service) through the development of marketing programmes that fully satisfy all the customers’ needs, provides them with a sense of community built around the brand and even empowers them to act as brand champions.
- To attain this final level a brand needs :behavioural loyalty, attitudinal attachment , sense of community, active engagement.
3. BRAND ASSET VALUATOR EQUITY MODEL
DIFFERENTIATION ESTEEM
+ +
RELEVANCE KNOWLEDGE
= =
BRAND STRENGTH ------------ BRAND STATURE
|
BRAND ASSET VALUATOR
1. Differentiation
|
BRAND ASSET VALUATOR
1. Differentiation
BAV’s Differentiation Pillar examines a brand’s unique meaning, dynamism and energy—what it is that enables it to stand out and capture the attention of consumers. This pillar most relates to brand pricing power, loyalty and cultural currency.
2. Relevance
BAV’s Relevance Pillar measures the connection brands have to people - how meaningful and relevant they are in the lives of consumers. It is cost-of-entry to brand consideration and market penetration.
3. Esteem
BAV’s Esteem Pillar captures how a brand lives up to its promise—how highly consumers respect and regard it. Brands held in high esteem are more likely to see repeat usage from consumers.
4. Knowledge
BAV’s Knowledge Pillar measures the depth of understanding consumers have for a brand and is the culmination of the brand-building process.
THE POWER GRID : BAV MODEL
BrandZ is the world’s largest brand equity database. Created in 1998 and continually updated. BrandZ is an invaluable resource, containing data on brands gathered from interviews with over 150,000 people every year in up to 400 studies around the world.
Bonding – Rational and emotional attachments to the brand to the exclusion of most other brands.
Advantage – Felt to have an emotional or rational advantage over other brands in the category.
Performance – Felt to deliver acceptable product performance and is on the consumer's short-list.
Relevance – Relevant to consumer's needs, in the right price range or in consideration set.
Presence – Active familiarity based on past trial, saliency or knowledge of brand promise.
THE POWER GRID : BAV MODEL
4. BRANDZ MODEL
Marketing research consultants Millward Brown and WPP have developed the BRANDZ model of brand strength, at the heart of which is the Brand Dynamics pyramid.
According to this model, brand building involves a sequential series of steps, where each step is contingent upon successfully accomplishing the previous step.
Advantage – Felt to have an emotional or rational advantage over other brands in the category.
Performance – Felt to deliver acceptable product performance and is on the consumer's short-list.
Relevance – Relevant to consumer's needs, in the right price range or in consideration set.
Presence – Active familiarity based on past trial, saliency or knowledge of brand promise.
