Exploring Brand Equity: Models and Strategies for Success

Brand Equity Models and Identity: Key Strategies for Marketers Business Skills

Brand equity is an important measure to track because it enables you to predict future revenue based on past performance. It’s also essential for making decisions about rebranding, expansion and more.

The best way to understand brand equity is by tracking real consumers using a brand tracker that asks unprompted recall questions, combined with Net Promoter Score and Purchase Intent Score metrics.

Understanding Keller’s Brand Equity Model in Depth

The Keller model is one of the most popular brand equity models. It lays out a clear structure that businesses can follow to build a powerful and successful brand from the ground up. It takes a great deal of hard work and nurturing to build customer- based brand equity, but it can provide significant benefits for businesses that take the time and effort to do it right.

The first step in building customer-based brand equity is getting people to recognize your brand. This may sound like a no-brainer, but it is surprisingly difficult to achieve. You must also ensure that the recognition you get is positive. People may be confused or suspicious of new brands, especially if they are unfamiliar with them. It is important to do your research and find out what the key points are that will get you the best and most consistent brand recognition.

Once you have the right amount of recognition, it’s time to move onto the next level in the Keller model, which is brand image. This involves promoting the positive associations your brand has and showing off those qualities. It is a tricky area to manage, since the images a brand projects are highly subjective. It is important to focus on those things that your customers will relate to, such as a commitment to the environment or supporting local communities.

Lastly, you need to work on creating the feeling of loyalty. A loyal brand is a source of free marketing, and it can be one of the most valuable things a company can have. You need to nurture your audience and reward them for their loyalty, which will then help you move up to the final tier in Keller’s model, brand resonance.

The Power of the Brand Pyramid: Constructing Brand Identity

Keller’s Brand Equity Model, also known as the Customer-Based Brand Equity Model, is one of the most popular brand models out there. It emphasizes the need to mold the feelings associated with a company’s products and brands in order to establish customer loyalty. It lays out five key stages that companies go through to build brand value, from awareness and differentiation through relationships and resonance with customers.

The first step is to make a list of your company’s unique qualities and determine which ones you want to emphasize. For example, you may decide to highlight your product quality, the convenience of your services, or the friendliness of your staff. Once you’ve settled on the qualities to focus on, conduct a meeting with all the stakeholders involved in your marketing efforts and have them share their opinions and thoughts.

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Once all the stakeholders have signed off on your brand pyramid, you can use it to guide your company’s marketing activities. If your business is still in its early stages, you can also present your brand pyramid to the entire organization at an all-hands meeting or a team-building session.

As you move up the Brand Equity Pyramid, collecting feedback at scale is key to ensuring that your brand is on track to reach its full potential. Invest in a tool like Conceptboard to collect and analyze customer feedback in real time and easily create reports. Then, you can begin to see a return on your investment and continue building brand equity for years to come! Try it free today.

Carroll’s Pyramid: A Different Perspective on Branding

Carroll’s pyramid is one of the most well-known corporate social responsibility (CSR) models. It focuses on how companies can adapt their business practices to be economically profitable, ethically and legally compliant and socially supportive. According to this model, companies can achieve these goals by prioritising their responsibilities in four domains: economic, legal, ethical and philanthropic.

The first level of the pyramid relates to financial responsibilities, which include meeting business’s operating costs and ensuring that shareholders receive a return on their investments. It also encompasses complying with tax regulations and ensuring that employees are treated fairly. Finally, it includes adhering to environmental laws and ensuring that a company’s products are safe for consumers.

A more recent study of CSR perceptions by managers (Pedersen 2010) found that when businesses were asked to prioritise their responsibilities, the most prevalent responses related to environmental responsibilities. Other responsibilities mentioned were product quality, employee well-being, community and society, with shareholder value receiving the fewest mentions of all. Thus this research contradicts the priority placed on shareholder value reflected in Carroll’s pyramid.

Brand awareness is the second layer of the pyramid and measures a brand’s relative popularity in the market. It is a proxy for a consumer’s future intent to purchase a specific brand. This measurement is typically collected through consumer surveys, and by assessing the amount of a customer’s ‘conversation share’ (the number of minutes they spend speaking about the brand) in everyday conversation.

A final element of the pyramid is a brand’s loyalty and affection, which is an intangible dimension that can be measured through consumer-brand relationships. However, this dimension of the pyramid has been largely ignored by scholars, which may be partly due to the difficulty of identifying and measuring a sentiment that cannot be easily quantified in terms of financial or operational metrics.

Deciphering the Brand Identity Prism

The brand identity prism is a six-sided model that breaks down the elements of a strong, well-formed brand. It consists of the physique, personality, reflection and self-image, culture, internalization and relationships. The facets work together to build a strong, cohesive brand image.

The first facet, the physique, refers to the physical aspects of the brand. This includes logos, colors, shapes and design that make the brand recognizable to customers. The second facet is the personality. This is the brand’s tone, communication style and emotional attributes. It can be difficult to define a brand’s personality, but it is crucial to create a connection with consumers.

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Reflection and self-image refer to how the brand makes customers feel about themselves. This is a great opportunity for brands to promote themselves in aspirational ways. For example, a soft drink company could depict their consumer base as a fun and friendly group of teenagers to appeal to that demographic’s desired image of themselves.

Relationships is the final element of the brand identity prism. It explains how the brand connects with customers and how that connection is established. It can be hard to gauge this, especially for a brand that is well-established. However, for a new brand, establishing this is vitally important for future success.

Loyal customers are one of the most valuable assets any business can have. Not only do they bring in repeat sales, but they also act as brand ambassadors on social media and in real life. It can be challenging to achieve brand loyalty, but it is possible with the right branding and marketing strategies. A good research firm or marketing agency can help you identify and develop your unique strengths as a brand.

Creating Consumer-Brand Connections: The Final Step in Brand Equity

Brand equity is an important intangible asset of a company. It has become a core attentive area of focus for both practitioners and researchers, as evidenced by the fact that just in the Scopus database alone there are 68 articles considering this topic. Despite the growing interest in the subject, the definition of brand equity is still open to different interpretations.

For example, Aaker’s brand equity model sees the concept as a measurement of recognition and outlines five major inputs that a business can leverage to increase its own brand value:

Keller’s take on the matter is more consumer-centric, focusing on the relationships and resonance a brand creates with consumers, and on how it helps them feel and interact with it. His model is often presented as a pyramid, with every element building upon the previous one to build brand identity and connection.

In contrast, Aaker’s original definition of brand equity from a cognitive psychology perspective (1991:27) saw it as a set of brand assets that can help explain the value that a product or service offers to a customer. His model offered two streams of research: firm-based and consumer-based brand equity (CBBE).

CBBE is a more recent concept, and research has focused on determining the factors that predict CBBE. According to Tasci, many of the studies that were conducted in this context followed a combination of Yoo and Donthu’s multidimensional brand equity construct and Buil et al.’s casual order framework.

For example, a local veterinarian might have high CBBE because it’s known around the city for its friendly staff and cheeky social media presence with lots of pet photos, as well as its affordable prices. All of these factors can contribute to building brand value, and the resulting positive perceptions will result in increased loyalty, referrals and lifetime value.

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