Brand
Brand
Brand
10-2
cont.,d
Marketing Advantages of CBBE
brands and stick with them and reject the other competitors,
creating steady revenue for the firms.
Higher margins.(Inelastic to price increases and Elastic to
price decreases)
Licensing opportunities- firm may choose to license its name,
logo, or other trade mark item to other company for use on
their products and merchandize.
Brand extension opportunities- when a firm uses an
established brand name to enter a new market.
10-3
Cont’d….
MAKING A BRAND STRONG; BRAND KNOWLEDGE
Brand knowledge is the key to creating brand equity, because
it creates the differential effect that drives brand equity.
Brand knowledge refers to the thoughts, feelings,
experiences, become associated of a customer with a
business’s brand or a company. Brand knowledge is developed
due to interactions in the form of advertisements,
communication.
Brand knowledge as having two components: brand
awareness and brand image.
Brand awareness refers to customers’ability recall and
recognize the brand under different conditions and to link
the brand name, logo, symbol, and so forth to certain
associations in memory.
Brand awareness is defined as the degree to which 10-4
Cont’d….
Brand recognition is consumers’ ability to confirm prior
exposure to the brand when given the brand as a cue.
Familiarity of brand with past exposure
Brand recall refers to the ability of the consumers to
correctly generate and retrieve the brand in their memory.
Advantages of brand awareness.
Learning Advantages: it influences the formation and
strength of the associations that make up the brand image.
It easier people learn about the brand and the better
the brand is registered in the mind.
Consideration Advantages: it is important that
consumers think of and consider the brand whenever they
are making a purchase for which the brand
10-5
Cont’d….
o Choice advantage; brand awareness can affect choice
among brands in the consideration set,
o Increase customer loyalty:
o lowers your customer acquisition costs:
o Establishes trust; Brand awareness assists a firm in
fostering consumer trust.
o Builds brand equity; Provide people with favorable
impressions and experiences.
o Brand image refer to more intangible aspects of the brand,
and consumers can form imagery associations directly from
their own experience. Or indirectly through advertising or by
some other source of information, such as word of mouth.
10-6
Cont’d
Brand image is consumers’ perceptions about a brand, as
10-35