A brand is a name, term, sign, symbol, or design, or a combination of them intended to identify the goods and services of one

seller or group of sellers and to differentiate them from those of competition. American Marketing Association A brand is a name or symbol used to identify the source of a product. When developing a new product, branding is an important decision. The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. This concept is referred to as brand equity.
     A product is something that is made in a factory. A brand is something that is bought by a customer. A product can be copied by a competitor, a brand is unique. A product can be quickly outdated; a successful brand is timeless. A brand is something that resides in the minds of consumer.

Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: customers, staff, partners, investors etc. Some people distinguish the psychological aspect, brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand, of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people, consisting of all the information and expectations associated with a product, service or the company(ies) providing them. People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called brand orientation. Careful brand management seeks to make the product or services relevant to the target audience. Brands should be seen as more than the difference between the actual cost of a product and its selling price - they represent the sum of all valuable qualities of a product to the consumer. A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. One goal in brand recognition is the identification of a brand without the name of the company present. For example, Disney has

been successful at branding with their particular script font (originally created for Walt Disney's "signature" logo), which it used in the logo for go.com. Consumers may look on branding as an important value added aspect of products or services, as it often serves to denote a certain attractive quality or characteristic. From the perspective of brand owners, branded products or services also command higher prices. Where two products resemble each other, but one of the products has no associated branding (such as a generic, storebranded product), people may often select the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner.

What is Brand Equity? Brand equity is the added value that endowed to products and services. This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share and profitability that the brand commands for the firm. Brand equity is an important intangible asset that has psychological and financial value to the firm. Brand equity is an intangible asset that depends on associations made by the consumer. There are at least three perspectives from which to view brand equity:
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Financial - One way to measure brand equity is to determine the price premium that a brand commands over a generic product. For example, if consumers are willing to pay $100 more for a branded television over the same unbranded television, this premium provides important information about the value of the brand. However, expenses such as promotional costs must be taken into account when using this method to measure brand equity. Brand extensions - A successful brand can be used as a platform to launch related products. The benefits of brand extensions are the leveraging of existing brand awareness thus reducing advertising expenditures, and a lower risk from the perspective of the consumer. Furthermore, appropriate brand extensions can enhance the core brand. However, the value of brand extensions is more difficult to quantify than are direct financial measures of brand equity. Consumer-based - A strong brand increases the consumer's attitude strength toward the product associated with the brand. Attitude strength is built by experience with a product. This importance of actual experience by the customer implies that trial samples are more effective than advertising in the early stages of building a strong brand. The consumer's awareness and associations lead to perceived quality, inferred attributes, and eventually, brand loyalty.

Strong brand equity provides the following benefits:

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Facilitates a more predictable income stream. Increases cash flow by increasing market share, reducing promotional costs, and allowing premium pricing. Brand equity is an asset that can be sold or leased.

However, brand equity is not always positive in value. Some brands acquire a bad reputation that results in negative brand equity. Negative brand equity can be measured by surveys in which consumers indicate that a discount is needed to purchase the brand over a generic product. The Role Of Brand:
       Identification of the source of product Assignment of responsibility to product maker Risk reducer Search cost reducer Promise, bond, or pact with maker of product Symbolic device Signal of quality

Building and Managing Brand Equity In his 1989 paper, Managing Brand Equity, Peter H. Farquhar outlined the following three stages that are required in order to build a strong brand: 1. Introduction - introduce a quality product with the strategy of using the brand as a platform from which to launch future products. A positive evaluation by the consumer is important. 2. Elaboration - make the brand easy to remember and develop repeat usage. There should be accessible brand attitude, that is, the consumer should easily remember his or her positive evaluation of the brand. 3. Fortification - the brand should carry a consistent image over time to reinforce its place in the consumer's mind and develop a special relationship with the consumer. Brand extensions can further fortify the brand, but only with related products having a perceived fit in the mind of the consumer. Alternative Means to Brand Equity Building brand equity requires a significant effort, and some companies use alternative means of achieving the benefits of a strong brand. For example, brand equity can be borrowed by extending the brand name to a line of products in the same product category or even to other categories. In some cases, especially when there is a perceptual connection between the products, such extensions are successful. In other cases, the extensions are unsuccessful and can dilute the original brand equity. Brand equity also can be "bought" by licensing the use of a strong brand for a new product. As in line extensions by the same company, the success of brand licensing is not guaranteed and must be analyzed carefully for appropriateness.

Managing Multiple Brands Different companies have opted for different brand strategies for multiple products. These strategies are:
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Single brand identity - a separate brand for each product. For example, in laundry detergents Procter & Gamble offers uniquely positioned brands such as Tide, Cheer, Bold, etc. Umbrella - all products under the same brand. For example, Sony offers many different product categories under its brand. Multi-brand categories - Different brands for different product categories. Campbell Soup Company uses Campbell's for soups, Pepperidge Farm for baked goods, and V8 for juices. Family of names - Different brands having a common name stem. Nestle uses Nescafe, Nesquik, and Nestea for beverages.

Brand equity is an important factor in multi-product branding strategies. Protecting Brand Equity The marketing mix should focus on building and protecting brand equity. For example, if the brand is positioned as a premium product, the product quality should be consistent with what consumers expect of the brand, low sale prices should not be used compete, the distribution channels should be consistent with what is expected of a premium brand, and the promotional campaign should build consistent associations. Finally, potentially dilutive extensions that are inconsistent with the consumer's perception of the brand should be avoided. Extensions also should be avoided if the core brand is not yet sufficiently strong.

Methodologies
Brand Equity Ten (Aaker): David Aaker, a marketing professor and brand consultant, highlights ten attributes of a brand that can be used to assess its strength. These include Differentiation, Satisfaction or Loyalty, Perceived Quality, Leadership or Popularity, Perceived Value, Brand Personality, Organizational Associations, Brand Awareness, Market Share, and Market Price and Distribution Coverage. Aaker doesn't weight the attributes or combine them in an overall score, as he believes any weighting would be arbitrary and would vary among brands and categories. Rather he recommends tracking each attribute separately. Brand Equity Index (Moran): Marketing executive Bill Moran has derived an index of brand equity as the product of three factors:
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Effective Market Share is a weighted average. It represents the sum of a brand's market shares in all segments in which it competes, weighted by each segment's proportion of that brand's total sales.

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Relative Price is a ratio. It represents the price of goods sold under a given brand, divided by the average price of comparable goods in the market. Durability is a measure of customer retention or loyalty. It represents the percentage of a brand's customers who will continue to buy goods under that brand in the following year.

Brand Asset Valuator (Young & Rubicam): Young & Rubicam, a marketing communications agency, has developed the Brand Asset Valuator, a tool to diagnose the power and value of a brand. In using it, the agency surveys consumers' perspectives along four dimensions:
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Differentiation: The defining characteristics of the brand and its distinctiveness relative to competitors. Relevance: The appropriateness and connection of the brand to a given consumer. Esteem: Consumers' respect for and attraction to the brand. Knowledge: Consumers' awareness of the brand and understanding of what it represents.

Brand Valuation Model (Interbrand): Interbrand, a brand strategy agency, draws upon financial results and projections in its own model for brand valuation. It reviews a company's financial statements, analyzes its market dynamics and the role of brand in income generation, and separates those earnings attributable to tangible assets (capital, product, packaging, and so on) from the residual that can be ascribed to a brand. It then forecasts future earnings and discounts these on the basis of brand strength and risk. The agency estimates brand value on this basis and tabulates a yearly list of the 100 most valuable global brands. Conjoint Analysis: Marketers use conjoint analysis to measure consumers' preference for various attributes of a product, service, or provider, such as features, design, price, or location. By including brand and price as two of the attributes under consideration, they can gain insight into consumers' valuation of a brand that is, their willingness to pay a premium for it. .

Measurement:
There are many ways to measure a brand. Some measurements approaches are at the firm level, some at the product level, and still others are at the consumer level. Firm Level: Firm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible asset. For example, if you were to take the value of the firm, as derived by its market capitalizationand then subtract tangible assets and "measurable" intangible assetsthe residual would be the brand equity. One highprofile firm level approach is by the consulting firm Interbrand. To do its calculation, Interbrand estimates brand value on the basis of projected profits discounted to a present value. The discount rate is a subjective rate determined by Interbrand and Wall Street equity specialists and reflects the risk profile, market leadership, stability and global reach of the brand. Product Level: The classic product level brand measurement example is to compare the price of a no-name or private label product to an "equivalent" branded product. The difference in price,

assuming all things equal, is due to the brand. More recently a revenue premium approach has been advocated. Consumer Level: This approach seeks to map the mind of the consumer to find out what associations with the brand the consumer has. This approach seeks to measure the awareness (recall and recognition) and brand image (the overall associations that the brand has). Free association tests and projective techniques are commonly used to uncover the tangible and intangible attributes, attitudes, and intentions about a brand. Brands with high levels of awareness and strong, favorable and unique associations are high equity brands. All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used.

Positive brand equity vs. negative brand equity:

Brand equity is the positive effect of the brand on the difference between the prices that the consumer accepts to pay when the brand known compared to the value of the benefit received. There are two schools of thought regarding the existence of negative brand equity. One perspective states brand equity cannot be negative, hypothesizing only positive brand equity is created by marketing activities such as advertising, PR, and promotion. A second perspective is that negative equity can exist, due to catastrophic events to the brand, such as a wide product recall or continued negative press attention (Blackwater or Halliburton, for example). Colloquially, the term "negative brand equity" may be used to describe a product or service where a brand has a negligible effect on a product level when compared to a no-name or private label product.

Family branding vs. individual branding strategies:

The greater a company's brand equity, the greater the probability that the company will use a family branding strategy rather than an individual branding strategy. This is because family branding allows them to leverage the equity accumulated in the core brand. Aspects of brand equity include: brand loyalty, awareness, association, and perception of quality . In the early 2000s in North America, the Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F." This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E." The Toronto Star quoted an analyst who warned that changing the name of the well known Windstar to the Freestar would cause confusion and discard brand equity built up, while a marketing manager believed that a name change would highlight the new redesign. The aging Taurus, which became one of the most significant cars in American auto history, would be abandoned in favor of three entirely new names, all starting with "F," the Five Hundred, Freestar, and Fusion. By 2007, the Freestar was discontinued without a replacement. The Five Hundred name was thrown out and Taurus was brought back for the next generation of that car in a surprise move by Alan Mulally.

Brand equity measurement

Brand equity is the outcome of the investment a firm makes in building a brands franchise. It is made up of y y y y Number of Users of the brand Consumer loyalty Perceived quality Positive symbols and Favorable associations around the brand.

A bundle of all these assets, together, results in Brand Equity. Brand equity also adds to the bottom line on a long-term basis. For, when a brand has high brand equity, it means that consumers are willing to pay a premium for the brand and its extensions. The value of brands owned by firms, like HLL, ITC and the IT majors like Infosys, and Wipro, are many times their total assets. Brand equity can be measured and quantified. Though, it is an asset, traditionally, brand equity has been omitted from the balance sheets because of its intangibility. But, it can certainly be measured in financial terms. Already, several companies show brand equity in their balance sheets. Brand equity of brands comes to the fore during Mergers & Acquisitions and takeovers of companies. Similarly, when one company buys out the brand of another, brand equity invariably gets measured. Criteria, such as market share, market ranking, brand stability and track record, stability of product category, internationality, market trends, advertising and promotional support, and legal protection are used for measuring brand equity. A Brand Equity can be Quantified and Measured Although recognized as an asset, the value of brands has been traditionally omitted from the balance sheets because of its intangibility. But, of late, this practice is changing. Already several companies show brand equity in the assets column of their balance sheets. When a brand can take premium pricing, has extendable properties shows positive response to economic cycles and resistance to market disturbances, these factors together enhance the position of the brand as an asset. In fact, the recent thinking is that brand equity should reflect not only the capitalized value of the incremental profits from the current use of the brand name but also the scope for its potential extensions to other product categories.

Building Brand Equity

Building and maintaining brand equity is an important area of ongoing brand marketing. If brand awareness and brand recall are not kept fresh and strong, a lot of time and expense will be wasted, and the long term wealth generating. Brand Equity is the accumulated value of the brand image or identity in the consumer's mind. The brand equity can be estimated by calculating the sales of a comparable brand with the same features and benefits and subtracting those from your brand's sales. The difference then, is the true value of your brand equity. There is an intangible value to brand equity and some suggest it can't be converted into a dollar value. The whole point of brand marketing is that everything does actually convert to a dollar value. In reality, that type of intangible is branding that perhaps missed the mark. That's not say that intangible values are all wasted. Intangibles such as good will do have some sales-oriented value that might be harvested at some point. Public relations is often considered an intangible yet it does help a business solve some brand communications needs and strengthen the brand's value, and hence contribute ultimately to sales. Brand Identity Guru Inc. builds brand equity from start to finish. By planning well and executing your brand strategy smartly, you reduce wasted advertising dollars and ensure your brand development contributes well to your corporate goals and shareholder value.

Five Steps to Building Brand Equity for the Small Business

Instinctively, every small business owner understands the importance of brand equity, even if they may not be able to define the idea. Marketing-speak aside, brand equity is how your customer recognizes why you are different and better than the alternative. Brand equity is built on that customer's direct experience with your product or service. This experience, repeated over time, creates equity or value in your brand. And it serves as a shorthand in the buyer's mind that separates you from everyone else. Brand equity is what creates loyalty that carries beyond price or the occasional product or service bump in the road. It is the quality that motivates your customers to recommend their friends or colleagues to you. Everyone wants brand equity. But building it, when you are more likely to qualify for the Inc. 500 rather than the Fortune 500, can be a puzzle. Particularly when the role models for brand equity are global icons like Coca Cola, Volvo, or Sonyhardly your peer set.

The good news is that the path to building brand equity is clear. Here are five simple steps you can take to get started: 1. Clarify your position The first step to building brand equity is to define your positioning: the single thing your company stands for to your customers. Single is the operative word here. Good positioning forces hard choices. To define your brand position, get the key leaders in your company together. Decide what makes you different and better than your competition. This might sound blindingly obvious, but most small businesses are too busy responding to customers or making payroll to do a lot of introspection. You don't need an agency or consultant to get started. There are a couple of good exercises out there that you can do on your own. A simple one that I like is the Positioning XYZs: "We are the only X that solves Y problem in Z unique way." Where...
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X is the category of the company, product, or service or other offering you've chosen to own. Y is the unmet need of your target audience. Z is the differentiation, advantage, or key positive distinction you have over your competition.

2. Tell your story Clear positioning is critical, but positioning statements are internal touchstones, not external expressions. Your next job is to make it interesting, to imbue the rational positioning with emotion. All brands are stories, and a good way to get started is to document and share your best corporate stories: the founding insight of the company, the times you went to extraordinary lengths to take care of a customer, or the background behind the big product breakthrough. The good news is that with ubiquitous broadband access and Web-based applications, it is within every company's grasp to share these stories more broadly through rich-media video and audio. B.Good (www.bgood.com), a small restaurant chain in Boston, has done this well. It's a burger joint that promises "real food," positioning itself against the typical fast-food burger and experience. The real food story begins with the stories of the "real people," the founders whose corporate values are based on their experiences growing up at their uncle's restaurant. You're reminded of these stories when you're in the restaurant or checking store hours online.

3. Bring it to life Once you have the story, you need to bring it to life. Make sure that the way your company looks and feels to the outside world matches that truth. This leads to questions about your corporate identity: Do the basics (starting with your name and logo) make the impression you want? And your broader system for communicating to the market: Web site, brochures, your retail environment. A client of mine talked about his Web site as a "corporate veil" that obscured what made the company special. Does your corporate identity reveal the best truth about your business, or does it hide it? 4. Start building brand before they buy Think beyond the transaction. Brands begin at the transaction level, but the brand experience goes much deeper. The opportunity to create a brand impression starts long before the buying decision. The principle is a simple one: Give away an artifact of your brand for free. In the professional services world, this means a taste of your service or your intellectual property. Here are two creative examples: Igor (www.igorinternational.com) is a naming consultancy based in San Francisco. It has built a methodology and a client list that rivals those of much-larger branding agencies. That methodology is laid bare in a 100-page guide to naming that it gives away without any registration requirements on its Web site. This move is both generous, in the spirit of Web content "wanting to be free," and also incredibly shrewd. The naming guide is rich, detailed, and outlines a very clear process for naming. Igor understands that giving away IP (intellectual property) doesn't cost it businessbut it is its lead business generator. It doesn't have to be just IP. Peet's (www.peets.com), the coffee retailer, allows customers to send their friends an "eCup," an email redeemable for a free cup of coffee. This is an ingenious way to enable the fiercely loyal customers of Peet's to promote the brand themselves. 5. Measure your efforts Here are a few direct ways to measure the progress of your brand:
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Ask your customers. Survey a subset of customers, prospective customers, and (ideally) people who chose a competitor over you. You'll be surprised at how candid people will be about your strengthsand your weaknesses. Make sure you ask the most important question in any customer research: Would you recommend us to a friend or colleague? Research (check out www.netpromoter.com) has shown that the willingness to recommend is the most important indicator of brand health. This research can be done quite cheaply online, using free or near-free tools like KeySurvey (www.keysurvey.com) or SurveyMonkey (www.surveymonkey.com).

Check your search rankings. I don't know all of what Igor measures, but I do know it fares very well in what is perhaps the most important measure of them all: organic search results. Type "product naming" on Google, and chances are you'll see Igor come up in the top three listings (the earned ones in the middle, not the paid ones on the top or side). Monitor the social media conversation. In most categories, consumers are holding a very active and candid conversation about the brands they love and hate. Check out what they're saying about you in blogs, bulletin boards, and vendor-rating Web sites (www.technorati.com or www.yelp.com are good places to start).