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Brand Equity

In: Business and Management

Submitted By nishanthanrng
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Brand Equity
Introduction
Brands has been around for centuries and play a major role in our lives today it helps us identify a good or service from one seller to another and separate it from the competitors satisfying the same need. These differences could be tangible or intangible which ultimately helps to improve consumers’ lives and enhance the financial value of firms.
What is Brand Equity?
Brand equity has number of perspectives, but in essence means the value or perception created to a product or service in the minds of the consumer through the activities leading to create a strong consistent brand. This is also called “Brand goodwill” by accountants.
The Role of brands
As stated by Kotler et al (2012) Brands help to identify the maker of a product and assign responsibility for its performance, helps consumers to evaluate identical products, simplify decision making and reduce risks.
It further states brands help firms to simplify product handling and tracing, organize inventory and accounting. A Brand helps firms to invest and reap the benefits of intellectual property rights by obtaining Legal protection through patents, trademarks and copyrights. Scope of Branding
Branding involves careful planning and positioning marketing activities and programs to build a strong and reliable brand in the mind of the consumer. As stated in Kotler et al (2012) it is all about creating differences between products. The marketer should develop marketing to build awareness and association attributes of the brand.

Brand Equity models
How to measure the Brand Equity when its not tangible? In some businesses the value of the brand accounts for a major portion of a firms’ value. For example Coca-Cola, Nike, Google.
Aaker Model
Developed by the marketing professor David Aaker, the conceptual consumer based model according to Ruta et al (2010) focus on

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