Brand Knowledge vs. Brand Equity: What’s the Difference?
Brand Knowledge • “is a function of awareness, which relates to consumers’ ability to recognize or recall the brand, and image, which consists of consumers’ perceptions and of associations for the brand.” Keller 1998
Consumer-Based Brand Equity • “…the differential effect that brand knowledge has on customer response to the marketing of that brand.”
Positive brand equity results in: • Greater perceived differentiation • Stronger brand loyalty • Larger profit margins • Higher trade support • Increased marketing communication effectiveness • Opportunities to extend and license brand name
What are the unique features of the brands you buy most often? • Amazon.com • Dunkin’ Donuts • Yahoo! • Costco • Gap • Supercuts • Coke
Choosing elements to build brand equity: elements should be: • memorable, easy to recognize or recall • meaningful or descriptive, persuasive, fun and interesting, rich in visual and verbal imagery • transferable within and across product categories and across geographical and cultural boundaries • adaptable or flexible and capable of being updated over time • protectable, both legally and competitively