Brand Equity Definition Kotler

But how do these companies make a connection with their customers.

Brand equity definition kotler. Keller s brand equity model is also known as the cbbe model which stands for customer based brand equity. A brand needs to be carefully nurtured and marketed so consumers feel real value and trust towards that brand. The set of associations and behaviour on the part of a brand s customers channel members and parent corporation that permits the brand to earn greater volume or greater margins than it could without the brand name. Apple customers trust that their apple phones and apple watches will deliver what the company claims.

In an abstract sense we can think of brand equity as providing marketers with a vital strategic bridge from their past to their future. That value is determined by consumer perception of and experiences with the brand. Marketers and researchers use various perspectives to study brand equity. Does the brand serve well the person and the society.

Below are the models to assess brand equity. A brand needs brand trust so that customers will believe that the brand will deliver what it claims. Brand equity is a marketing term that describes a brand s value. Companies knew that if they keep their customers happy they will profit.

Brand asset valuator. However phliip kotler talks about the below models to measure brand equity in his book marketing management 13th edition co authored by kevin keller. Brand equity does not develop instantaneously. As marketing evolved the customer became the main focus of the company.

Many research agencies have developed their own brand equity models that are executed in partnership with end user researchers. Marlboro was the most popular brand of cigarettes. Leuthesser 1988 offers a broad definition of brand equity as. Brand equity refers to the value of a brand.

Brand equity can be defined as the premium charged by the company for its particular product or service offered as it has a renowned and recognized name in the market as compared to the similar line of products or services having same features and utility. If people think highly of a brand it has positive brand equity. Companies can create brand equity for their products. Nike adidas harrods have high brand equity.

It may be reflected in the way consumers think feel and act with respect to the brand as well as in the prices market share and profitability the brand commands for the firm. The final consideration is whether the brand delivers brand beneficence.