Answer to Question #270346 in Marketing for M*M

Question

It is generally accepted that branding and measuring brand equity is important and that there are three levels of brand acceptance linked to loyalty that a brand can instil in customers. Write a 1000-to-1200-word essay in which you :

• Identify and explain the three levels of brand acceptance.

• Discuss the reasons why brand metrics are important

• Describe two of the three approaches used to calculate brand value

Answer 1

(a)

·        Rejection – bad experiences in the past lead to consumer indecisiveness.

·        Non – Recognition – poor marketing and competition leads consumer to not be able to identify the brand.

·        Recognition – Consumer can now recognize the brand and choose it when compared to other brands.

(b)

·        They are crucial in the process of brand strategizing.

·        They help to understand brand strength drivers.

(c)

·        Historical Cost – In this method the amount spend on building the brand from start up to now is considered.

·        Comparable method – Similar transactions in similar companies in the same industry towards brand making is considered in this method.