BU470 Chapter Notes - Chapter 3: Marketing Science Institute, Brand Equity, Brand Valuation
Document Summary
Chapter 3: brand equity names, symbols, and associations had financial value. What is brand equity: a set of assets (or liabilities) linked to a brand"s name and symbol that adds (or subtracts from) the value provided by a product or service to a firm and/or that firm"s customers. Financial brand equity or value is largely concerned with an estimate of the brand"s worth to the firm. Customer brand equity examines the strength of the relationship between the consumer and the brand. How do firms benefit from brands: finance: reframe requests for financial support in terms of roi rather than cost, marketers can build more influence and gain the needed resources to build strong brands. Since brands enhance lifetime value and price premiums, they help increase returns to shareholders. A strong brand can result in greater buyer power, resulting in decreased costs and efficiency savings.
