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To browse Academia. Skip to main content. Log In Sign Up. Download Free PDF. Managing Brand Equity-David A. Aaker simon and schuster, Phoebe Y. Download PDF. A short summary of this paper. Aaker All rights reserved, including the right of reproduction in whole or in part in any form. Includes bibliographical references and index.
Brand name products�Valuation�United States�Management. Intangible property�Valuation�United States�Management. B7A22 What Is Brand Equity? What Is the Value of a Brand? Scaling Brand Perceptions 7. This is a critical concept. It is a vision about how to develop, strengthen, defend, and manage a business�. It will be more important to own markets than to own factories.
The only way to own markets is to own market-dominant brands. The power of brand names is not restricted to consumer markets. In fact, brand equity may be more important in industrial goods markets than in consumer marketing.
Brand-name awareness often is pivotal in being considered by an industrial buyer. Further, after analysis, many industrial purchase alternatives tend to be toss-ups.
The decisive factor then can turn upon what a brand means to a buyer. The Marketing Science Institute recently did Lowe Roughneck Boats For Sale Craigslist Pdf a survey of its membership, which includes 50 or so of the top marketing companies in the country, to learn their opinion as to what were the pressing questions in need of research. The runaway winner was brand equity. Academic research interest has also mushroomed: A recent research proposal competition sponsored by the Marketing Science Institute received 28 proposals.
The growing interest is reflected in the proliferating conferences, articles, and press attention on branding. Another indicator is the experimentation with different organizational forms in order to better enhance and protect brand equity.
Some, like Colgate-Palmolive and Canada Dry, have created a management of brand equity position to be a guardian of the value of brands. There are several driving forces behind the interest in branding. First, firms have shown a willingness to pay substantial premiums for brand names because alternative development of new brand names either is not feasible or is too costly.
This phenomenon raises several questions, such as: How much is brand equity worth? On what is it based? Why should so much be paid? Second, marketing professionals sense that an increased emphasis upon price, often involving the excessive use of price promotions, is resulting in the deterioration of industries into commodity-like business areas. They believe that more resources should be diverted into brand- building activities, to develop points of differentiation.
The recognized need is to develop sustainable competitive advantages based upon non-price competition. How then are such activities justified in a world with extreme pressures for delivering short- term performance? Third, managers realize a need to fully exploit their assets in order to maximize the performance of their business.
A key asset is usually the brand name. How can it be exploited? Can it be extended to new products, or exposed to new markets? Is there an opportunity to get more out of it by strengthening it or by altering its components? Conversely, how might it be damaged, and how can that be avoided?
One objective is to define and illustrate brand equity, providing a structure that will help managers see more clearly how brand equity does provide value. Another is to document research findings and illustrative examples which demonstrate that value has emerged or has been lost from marketing decisions or environmental events that have enhanced or damaged the brand.
A third objective is to discuss how brand equity should be managed: How should it be created, maintained, and protected?
How should it be exploited? A fourth objective is to raise questions and suggest issues that should be addressed by thoughtful managers who are trying to think strategically. I have written this book for managers having either direct or indirect responsibility for brands and their equity. Such managers will represent firms that are either large or small, consumer or industrial, service- or product-focused.
They will be concerned with the need to develop and protect the equity in their core brands. In addition, they will or should be addressing such questions as the following: What is the role of the company name in the branding equation? Should we develop a subbrand name? Should the brand name be extended to other products? I hope also, however, that it will be used in schools of management where faculty and students are attempting to improve our ability to, in general, manage strategically and, in particular, manage brand equity.
The first chapter discusses the Ivory brand, provides an historical background, and both defines brand equity and suggests a variety of approaches to place a value on it. Four dimensions of brand equity are the focus of the next six chapters, which collectively define the dimensions, specify how each creates value for the customer and the firm, and discuss their measurement and management.
Chapter 2 considers the importance of the brand loyalty. Chapter 3 covers the creation, measurement, and role of brand awareness. Chapter 4 discusses perceived quality, how it can be managed, and the evidence as to its role in business performance. Chapter 5 introduces the concept of associations and positioning. Methods to measure associations are covered in Chapter 6. Selecting, creating, and maintaining associations is the subject of Chapter 7.
Clearly, the management of associations, covering three chapters, is both important and complex. The brand is identified by the name, and often by a symbol and a slogan as well.
Chapter 8 discusses these indicators and their selection. Brand extensions the good, the bad, and the ugly is the topic of Chapter 9. Chapter 10 presents methods to revitalize a tired brand�to breathe new life into both it and its context. It also discusses the end game: how to allow a brand a graceful decline and, if needed, death.
Chapter 11 provides a discussion about global branding, presents a summary model of brand equity, and concludes with a set of observations from each chapter that collectively summarize the major points presented in the book. There is much to be learned from history. Each of these analyses provides a vivid illustration of how a wide variety of actions can affect a brand. In several cases a dollar value is placed upon a set of actions affecting a brand, even though it is impossible to know for sure what caused what.
Too, there is a host of case studies throughout, to illustrate the concepts and methods and to make them more tangible and understandable. In addition to the historical flavor�what has happened to individual brands�more systematic studies are sought out and reported. The Lowe Boats Models 60 past 15 years have seen the development of studies about such brand constructs as market share, awareness, brand extensions, perceived quality, and others that provide significant evidence about their role.
Some of these studies have been based upon large-scale data bases. Others come from Lowe Aluminum Boats For Sale Near Me To Pdf controlled experiments. They all help provide substance to an area that has too long relied upon opinion. Each chapter closes with a set of questions to consider. The goal is to provide a vehicle with which to translate the ideas in the chapter into a diagnostic and action agenda. Some questions will stimulate new ways of looking at your brand and its environment, and others will suggest a need to find out more information.
Let me offer my special thanks here to the following: Bob Wallace, my editor at The Free Press, for his enthusiasm for the project and Kevin Keller, my research colleague on the first two branding research efforts in which I was involved, for his stimulating ideas.
Then there was MSI, who sponsored three branding conferences, provided inspiration and support. Finally, I would like to thank my family, who put up with yet another writing project. David A. A product can be copied by a competitor; a brand is unique. A product can be quickly outdated; a successful brand is timeless. That ad is shown in Figure Figure shows a Ivory ad illustrating the consistency of the positioning over time. Note the imagery created by the forest, the barefoot girl, and the clear water.
Used with permission. Ivory was a remarkable product in a time in which most soaps were yellow or brown, irritated skin, and damaged clothes. The fact that it floated had practical value to those used to being frustrated by trying to find their soap in the bath water. It was thus well positioned�a soap that was pure, was mild, and floated.
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