What is the brand equity model?

Brand equity models are designed to establish the way in which brand value is created for a brand. Each of the brand equity models offers a deep insight into the brand value concept and the ways to evaluate it. Brand equity models are used to design marketing strategies at various stages.

What is brand equity analysis?

Brand equity is defined as the value that your brand delivers to your organization. That value may be derived from higher revenues, lower marketing costs, premium pricing—even favorable negotiating power with vendors.

What is cost based brand equity?

The Cost based method of measuring brand equity includes historical data, replacement costs, discounting cash flow methods and also inter brand method. On the other hand, price based method considers price premium, market share capitalization, price premium at indifference.

What are examples of brand equity?

Brand equity refers to the value added to the same product under a particular brand. This makes one product preferable over others. This is brand equity which makes a brand superior or inferior to that of others. Apple: Apple is the best example of brand equity.

How do you measure brand equity?

Measuring Brand Equity. There are three levels on which brand equity can be measured: the firm level, the product level and the consumer level. At the firm level, the equity of the brand is measured as a financial asset by subtracting all other measurable variables; what remains is called brand equity.

What is brand equity theory?

The Goal Is Brand Equity. At the heart of the retail branding theory is the belief that a successful strategy pays off through the added value consumers associate with a product. That added value comes when consumers perceive one brand is superior to others in the same category, and they are willing to pay more for it.

What does managing brand equity mean?

Brand management is a function of marketing that uses techniques to increase the perceived value of a product line or brand over time. Brand equity makes the difference between a consumer purchasing a known brand’s product over a generic brand product that carries a lower price point.