Brand equity is an essential element of any successful business. It is the measure of how a brand is perceived by consumers, and it has a direct correlation to the success of a business. There is no single formula for creating and measuring brand equity, and a variety of models have been used to evaluate it. One model that stands out is the Aaker Model of Brand Equity. Over the years, the Aaker Model has become the go-to model for measuring brand equity, leading to its popularity among marketers. In this blog post, we will discuss the Aaker Model of Brand Equity and how it can be used to measure the success of a brand. We will explore the advantages and disadvantages of the Aaker Model and offer insight on how you can use it to effectively measure brand equity. We will also discuss the implications of the Aaker Model for marketers and how it can be used to create a successful brand strategy. By the end of this blog post, you will have a better understanding
Brand Equity – David Aaker Model
What is the Aaker model?
Various theories exist regarding how marketers can recognize, evaluate, and bolster a company’s brand, such as the Aaker Brand Equity Model. It bears the name of David Aaker, a former University of California, Berkeley professor who first proposed the idea in the 1990s. According to this model, a brand’s perceived quality, loyalty, and awareness all contribute to its brand equity. These resources can assist a business in raising the value of its goods or services, which could have a number of advantages for the client. According to the model, brand equity can:
What is brand equity?
The term “brand equity” refers to the value of a company’s brand based on consumer recognition. In marketing, a company’s brand is a collection of characteristics that enable customers to recognize the business. A brand, for instance, can be a company’s name, logo, and merchandise. When customers can quickly recognize a company thanks to its brand, it has more brand equity. Brand equity is a crucial idea that can aid marketing professionals in improving client loyalty and the public’s perception of the organization.
Elements of brand identity in the Aaker model
The Aaker model includes a number of components that a business can use to identify its brand identity, which can assist a business in establishing and preserving its brand equity. The elements of brand identity in the Aaker model are:
Brand as a product
This part of brand identity emphasizes the goods or services that a business offers to customers. Included in it is the product’s scope, or the collection of features that define the product. It considers the products quality and its value for customers. This component can also consist of the consumers who use a product and how they use it.
Brand as an organization
As a component of an organization, the brand refers to the characteristics of the business. This aspect of a brand’s identity may include a company’s location and the scope of its goods and services. A large corporation may have a much broader reach with a large audience than a small business, for instance, which may have a strong reach with local customers in its region. This component also emphasizes a company’s culture and values, such as its mission statement.
Brand as a person
This component of brand identity is centered on the interactions that a business has with its clients. According to the Aaker model, this element may also refer to a brand’s personality, much like a person’s personality. An organization might, for instance, base its brand identity on a list of descriptors like “customer-oriented,” “trustworthy,” and “casual.”
Brand as a symbol
The Aaker model’s final component of brand identity is the symbols associated with a brand. A company’s logo, for instance, could be a part of its brand identity. The history of a brand, visual images, or audio components can all be included in the brand as a symbol. The Aaker model claims that these symbols can give a brand’s identity a structure.
5 components of brand equity in the Aaker model
The Aaker model identifies five elements that contribute to brand equity in addition to the elements of brand identity:
1. Brand loyalty
This factor gauges consumer loyalty to a particular brand. For instance, a consumer who only buys groceries from one retailer has a strong sense of loyalty to that retailer. The Aaker model states that strong brand loyalty can enable a business to concentrate on keeping its faithful customers, which can aid in lowering marketing expenses. Additionally, it gives businesses an advantage over rivals in the market who might struggle to persuade devoted customers to switch brands.
2. Brand awareness
Brand awareness considers the publics familiarity with a brand. For instance, a business has high brand awareness if the vast majority of locals are familiar with its name and the products it sells. According to the Aaker model, businesses with strong brand recognition can use their visibility in a neighborhood to draw in more clients, which will boost sales. Customers may feel more at ease making the decision to buy goods or services from a business if they are aware of this.
3. Perceived quality
The public’s perception of a brand’s products or services is referred to as its perceived quality. For instance, a business that sells a more expensive version of an item might be perceived as having a higher level of quality than one that sells the same item for a lower price. Customers may view a brand’s perceived quality as reliable, which encourages them to buy the company’s goods or services. Additionally, perceived quality can aid businesses in differentiating themselves from rivals.
4. Brand associations
This factor gauges how customers feel about a particular brand. These associations may consist of the knowledge a customer has acquired about the business, such as from advertising, or their feelings toward a particular brand. Customers may have a positive association with a brand if, for instance, they feel happy when they hear the name of a business. Brand associations can help foster a favorable perception of a business, which may persuade customers to purchase its goods or services.
5. Proprietary assets
In the Aaker model, proprietary assets, the last element of brand equity, refer to a brand’s intangible assets. Patents, trademarks, copyrights, and other forms of intellectual property may be among these assets. Although they are intangible, these resources can help a company’s reputation. According to the Aaker model, creating proprietary assets can give businesses an edge over their rivals by boosting brand equity.
FAQ
How do you use Aaker brand equity model?
Aaker’s Brand Equity Model. According to David Aaker, brand equity is a collection of assets and liabilities related to a brand that either increase or decrease the value of the good or service that bears the brand.
What is the difference between Keller and Aaker brand equity?
University of California professor David Aaker created the Aaker Brand Equity model. According to his model, brand equity is made up of brand recognition, brand advocacy, and brand associations, which come together to ultimately provide the value that a good or service has to offer.
