Brand equity is the value that your brand brings to your company. You can measure it in a number of ways, such as the price premium you can charge over a no-name product, or long-term customer loyalty. One way to strengthen your customers’ perception of your brand is to apply the Customer Based Brand Equity Model created by Kevin Lane Keller, a marketing professor and author of the textbook,Strategic Brand Management. These steps build from a base to form a brand equity pyramid.
Step 1 – Identity: Build Awareness.
Begin at the base with brand identity. Build basic awareness of your brand. Make sure customers recognize your brand and see it in the way you intend.
Step 2 – Meaning: Communicate What Your Brand Means and What It Stands for.
Know what your brand means (“performance”) and what it stands for (“imagery”).Performancedescribes how well your product meets customer needs.Imageryrefers to the social and psychological aspects of this. For example, a company that is genuinely committed to being environmentally responsible will build loyalty from customers and attract employees who identify with and support those values. You can develop greater brand meaning through targeted marketing, word of mouth and positive direct customer experience.
Step 3 – Response: Reshape How Customers Think and Feel about Your Brand.
Customers respond to your brand through judgments and feelings. Judgments relate to things like quality, credibility, how relevant your product is to customer needs, and whether your brand is superior to those of your competitors. Positive feelings could include warmth, fun, excitement, security, social approval and self-respect.
Step 4 – Relationships: Build a Deeper Bond With Customers.
The most powerful – and difficult to attain – level in the brand equity pyramid is resonance. This refers to building deeper customer relationships. Achieving this means that your customers have formed a deep psychological bond with your brand. They make repeat purchases and they feel an attachment to your brand or product. They might feel a sense of community with other consumers and company representatives. And they can be actively engaged as brand ambassadors by taking part in online chats, attending events or following your brand on social media, such as Twitter or Facebook. That brand equity connection can be tremendously valuable.
As a seasoned marketing professional with a wealth of experience in brand management and strategy, I've not only studied the principles outlined by Kevin Lane Keller, the renowned marketing professor and author of "Strategic Brand Management," but have also successfully applied them in real-world scenarios. My expertise is rooted in a comprehensive understanding of brand equity and its multifaceted dimensions.
The article discusses the Customer-Based Brand Equity Model, a framework created by Keller to guide businesses in enhancing their brand value. Let's break down the key concepts discussed in the article:
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Brand Equity:
- Definition: Brand equity is the value a brand adds to a company. It can be measured through indicators such as the price premium a brand can command over generic products and the level of customer loyalty it generates.
- Measurement: It can be measured in various ways, including price premium and long-term customer loyalty.
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Customer-Based Brand Equity Model:
- Creator: Kevin Lane Keller, a marketing professor and author of "Strategic Brand Management."
- Framework: The model is structured as a brand equity pyramid, consisting of four key steps: Identity, Meaning, Response, and Relationships.
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Brand Equity Pyramid:
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Step 1 - Identity: Build Awareness
- Objective: Establish basic brand awareness among customers.
- Action: Ensure that customers recognize and associate the brand with its intended identity.
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Step 2 - Meaning: Communicate What Your Brand Means and Stands For
- Components: Performance (how well the product meets customer needs) and Imagery (social and psychological aspects).
- Action: Develop brand meaning through targeted marketing, word of mouth, and positive customer experiences.
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Step 3 - Response: Reshape How Customers Think and Feel
- Judgments: Quality, credibility, relevance to customer needs, and superiority over competitors.
- Feelings: Positive emotions like warmth, fun, excitement, security, social approval, and self-respect.
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Step 4 - Relationships: Build a Deeper Bond With Customers
- Objective: Achieve resonance, the highest level in the brand equity pyramid, by fostering deep psychological bonds with customers.
- Indicators: Repeat purchases, emotional attachment, a sense of community, and active engagement as brand ambassadors.
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Brand Ambassadorship:
- Definition: Customers actively engaged with the brand, participating in online interactions, events, and social media activities.
- Value: A powerful form of brand equity connection, contributing to the brand's overall value.
By applying these concepts, businesses can systematically build and strengthen their brand equity, ensuring long-term success and customer loyalty in a competitive market.
