Introduction
The general perception of a brand or a brand personality is essential in the business world. A study has shown that customers expect more from the brands they use in terms of customer experience, their work culture, the environment where their products are made, and so on.
In other to keep up with customer expectations, organizations now need to see how their marketing efforts can contribute to their brand equity and boost their brand image.
This is where the Aaker Brand Equity model becomes useful.
In this article, we would discuss the Aaker brand equity model, its components, its advantages to your brand, and more.
What is Brand Equity?
Brand equity is the value that culminates into a financial reward for an organization based on customer perception of the brand. For instance, big brands like Apple have enormous brand equity since customers are loyal to these brands, and would choose Apple over other brands despite the price.
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This simply means that if Apple made the same products without their brand name on them, it would affect their sales and their profit margin would diminish. This then implies that brand awareness is an important part of brand equity and the level of awareness customers have about a brand is directly proportional to sales, profit, and ultimately commercial value or equity, as these terms are sometimes used interchangeably.
In summary, brand equity is a term that describes the level of influence a brand name has in the mind of the customers. Organizations create brand equity by fostering positive experiences that, make them stand out from the competition and evoke loyalty from their customers. Brand equity is attained by creating brand awareness through campaigns that are tailored to customer values and fulfilling the brand promise.
An organization with positive brand equity can charge a premium for a product, and any product affiliated with or related to the brand can enjoy the same commercial success.
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What is Aaker’s Brand Equity Model?
Aaker’s brand equity model explains brand equity as a mix of brand awareness, loyalty, and quality as perceived by the customer. The Aaker brand model was introduced by David Aaker. a professor from the University of California.
His model believes that brand awareness, customer loyalty, and perceived quality are assets that can help businesses increase the commercial value of their products and services. In his model, he identifies the following as the components of brand equity.
1. Brand Loyalty
This component focuses on the extent to which a company or business can retain its customers in the face of other businesses with similar products. It is evident when a customer grocery shops at a particular store over and over again, this implies that the customer is loyal to that store.
Hence, according to the Aaker model, organizations should focus on growing and maintaining their brand loyalty, in so doing they reduce marketing costs and direct all efforts at ensuring that they do not lose customer trust.
2. Brand Awareness
He defines brand awareness as the level of knowledge or familiarity customers have with a brand. The level of recognition of a brand’s logo message themes and the extent to which customers can associate campaigns, brand voice, products, or services with a brand show or depicts brand awareness.
The Aaker model proposes that organizations that have attained brand awareness can use their visibility to attract more clients. As awareness breeds trust and would cause customers to choose your products over other similar brands.
3. Perceived Quality
The perception in terms of the quality that a brand carries can cause customers to see a brand as reliable and trustworthy. For instance, the cost of an Apple phone is way higher than a Samsung phone. They are both credible brands, however, the perceived quality of Apple products is higher, hence Apple has a price advantage in the market compared to Samsung.
This differentiates Apple distinctly from other competitors in that space.
4. Brand Associations
This component gauges the connections that customers have with a brand, in terms of the information about the brand. The emotions your brand messaging or campaigns evoke are referred to as brand association.
For example, if a customer feels excited, and pumped up, happy after listening to any message associated with your brand, that means your brand has a positive association. This can help increase your commercial value as customers are happy to purchase your brand products or services.
5. Proprietary Assets
Proprietary assets are the final component of brand equity and it refers to intangible assets, owned or possessed by a brand. It includes patents, copyrights, trademarks, and intellectual property rights.
These assets have no monetary value, however, they add to an organization’s credibility, and developing these assets can give companies an edge over their competitors.
Aaker’s Brand Equity Model vs Keller’s Brand Equity Model
Aaker’s brand equity model and Keller’s brand equity model are part of the various theories that show how marketers can identify, gauge and strengthen a company brand.
Here are some key differences between the two models:
Focus
Aaker’s model focuses on the importance of developing and managing a set of brand assets that are unique to the brand, such as brand personality, brand values, and brand associations. Keller’s model, on the other hand, emphasizes the role of customer perceptions and experiences in shaping brand equity.
Components
Aaker’s model identifies five components of brand equity: brand loyalty, brand awareness, perceived quality, brand associations, and other proprietary brand assets. Keller’s model, on the other hand, identifies four components: brand salience, brand performance, brand imagery, and brand judgments/feelings/resonance.
Structure
Aaker’s model is structured around a set of brand assets that can be developed and managed over time. Keller’s model is based on a set of customer-based brand equity components that reflect the strength of the brand in the minds of customers.
Indicators
Aaker’s model provides a set of indicators for measuring and monitoring brand equity, such as brand awareness, brand loyalty, and brand associations. Keller’s model also provides metrics for measuring brand equity, but these metrics are more focused on customer perceptions and attitudes toward the brand.
Implementation
Aaker’s model is often used by organizations to develop and manage their brand assets, while Keller’s model is mostly used to understand and improve customer perceptions and experiences with the brand.
In summary, while both Aaker’s and Keller’s models provide valuable frameworks for analyzing and managing brand equity, they are different in their focus, components, structure, metrics, and implementation. The choice of which of the models to adopt is based on the specific need and goals of an organization.
Elements of Brand Identity in the Aaker Model
The Aaker model consists of several elements that an organization can use to define its brand identity. This way. a brand can tailor its product or service to speak to the Aaker brand equity model and they are;
- Brand as a Product
This element of brand identity deals with the product or service. The product quality, specifications, and value to the customer, who it s meant for, and how to use the product. All this set of features highlighted and the value helps to build the strength of the product as a brand.
- Brand as an Organization
The brand as an organization element is the features or attributes of the organization. It may include the organization and the locations it covers. The organizational culture and the value the organization offers. The vision and mission statement of the organization is also included.
- Brand as a Person
This element of brand identity capitalizes on the relationship an organization has with its customers. In other words, if the brand were a person, what would be its traits? It then uses brand messaging and advertising to depict the attributes of its personality and relates to customers in that regard.
- Brand as a Symbol
This is the final element of brand identity in the Aaker model. It involves the symbols associated with the brand and the visual images associated with the brand. The brand logo, themes, colors, and fonts choice are all symbols for the brand that can provide a form of structure for the brand identity.
Advantages Of Aaker Brand Equity Model
Here are some advantages of the Aaker brand equity model
1.) Information Dissemination: The model can help customers have in-depth information about a brand, as detailed information about the brand is shared with customers. This suggests that brand equity can help customers learn, understand and retrieve more information about a brand.
2.) Influence Purchasing: It can also help compel customers to patronize your brand, due to their level of awareness of your brand as depicted in the Aaker brand awareness component.
3.) Customer Satisfaction: The perceived quality of your products as a brand, can impact customer satisfaction positively. As the customers believe that they are getting the best value for their money with your products. Best of all it emphasizes a customer-focused approach, which supports organizations in honing their brand strategies to meet customer needs and preferences.
4.) Detailed Framework: The Aaker model provides a complete guide for understanding and using brand equity effectively, as it takes into cognizance all the essential dimensions of brand equity, as well as a comprehensive approach to analyzing and improving brand performance.
5.) Adaptable: The Aaker model is a flexible framework that can be tweaked to suit the requirements of different organizations, hence it can be applied to a broad range of industries and various market conditions.
6.) Measurement and Evaluation: The Aaker model proffers a range of metrics and tools to help organizations gauge and evaluate brand performance.This way they can monitor their progress and identify areas of improvement.
Disadvantages Of the Aaker Brand Equity Model
1.) Advanced: The Aaker Brand Equity Model is a complex framework that requires a certain level of understanding of marketing and branding concepts to be able to apply effectively. Therefore it may be difficult for newbies in the market space to understand and implement.
2.) Subjectivity: The model relies mainly on the perceptions of customers, which might be a bit technical to gauge and quantify. It can also be affected by individual bias and opinions.
3.) High Investment Cost: Another disadvantage of the Aaker brand equity model is the high financial cost associated with building this model. This is so because advertising involves a significant amount of media presence over a long period, making it an expensive process.
In a nutshell, while the Aaker Brand Equity Model can provide a useful framework for gauging and managing brand equity, however, it would have to be used in addition to other models for a more holistic view of brand performance.
Conclusion
The Aaker Brand Equity Model is a popular framework developed by David Aaker in 1990. The model defines brand equity or assets as the extent of a customer’s perception of the following components brand awareness, brand loyalty, brand associations, perceived quality, brand association, and proprietary assets.
In other words, the extent to which a customer is aware of a brand and loyal to a brand believes in the quality of a brand, and associates certain emotions with a brand is brand equity.
It states that the level of awareness a customer has about brand equity impacts the financial success of that brand, be it a service or a product. However like any other model, there are advantages and disadvantages, but, it remains a valuable tool for building and sustaining a strong brand.