Brand Dynamics

System for measuring & understanding brand value and equity

Consumer Equity
(Perceptual)

Brand Equity
(Financial)

Consumer Equity
Consumers thoughts, feelings, associations linked to the brand Result of Sales force efforts, A & P, personal experience, Credibilty endorsement, etc Consumers thought, feelings actively define what a brand means to them Associations define what brand worth to them Consumer Equity is fundamental to Brands Equity

Consumer Equity
Brand Associations have a real financial value to the brand & in effect determine the brand value in the market Perceived Value of the brand should be higher than the price of the brand If a brand is able to sustain a premium price; its value as an asset is likely to be greater than a brand that generates more volume but produces less revenue

Brand Dynamics Pyramid

Bond Advantage Performance Relevance Presence

Presence
Brand must develop a presence as customer does not want to buy a brand that they know nothing of

Relevance
The feature of the brand which gives an appropriate benefit which meets the needs of the consumer BD looks at this level as a -ve check. i.e those who do not find the brand relevant, for them the brand remains at a Presence Stage x

Performance
Brand needs to live up to the customers expectations of product performance within the category BD looks at this level as a -ve check, i.e. those brands that do not perform remain only at the Performance Stage

Advantage
For sustaining the relationship with the customer the brand must be differentiated appropriately Developing distinctive personality gives the brand a perceived consumer advantage

Bond
Strong relationship with the brand due to reliance on product performance As relationship deepens consumers confirm that the brand is the right one for them When consumers bond with the brand they take performance for granted Reliability, Trustworthiness Result: True loyal consumer Refusal to alternatives