Difference between Branding and Brand Equity Essay Example for Free

Difference between Branding and Brand Equity EssayThough no one can go back and make a commemorate forward-looking start, anyone can start from now and make a sign new ending. (Bard qtd. in. ThinkExist. com) This quote shows one item that the process of branding is endless. Because, simply, when brand equity is known or measured, the brand could be protected and managed properly. This essay aims at giving an overview of the branding and brand equity terms or concepts to show the difference between both(prenominal) of them. And due to the fact that both terms be usually defined around the concept of adding apprise to a product (or service) (Binnie 17), it could be hard for some people to differentiate between both of them. Thats why the best approach to realize the difference between branding and brand equity is to dig and search in the literature to define both terms to know what is meant by each one of them. However, before separating each term from the other -to know th e difference between both of them-, lets move to the real world to have an idea about a simple fact concerning a certain brand (Coca-Cola in this case).This interesting event mentioned by Blackett- deserves to be mentioned here to realize how important a brand could be for a beau monde. By mid-2002, Coca-Cola Companys stock market value reached $136 billion, while the business dismiss asset value (the book value) was only $10. 5 billion. (5) The interesting fact here is when we add this information to the fact that The value of Coca-Cola brand for the same period (mid-2002) was estimated by $70 billion (over half of the $136 intangible value mentioned above . (Blackett 5) Then, after realizing the importance of branding to the company in the marketplace -in the previous example-, its time to know what is meant by both terms, branding and brand equity. First of all, a brand is defined by the Dictionary of Business and Management as a name, sign or symbol used to identify items or services of the seller(s) and to differentiate them from goods of competitors. (qtd. in. BuildingBrands Ltd. ) However, a brand is more than a name, a sign or a symbol.In other word, this definition is not sufficient to describe the term brand. Grimaldi gave a better definition for the term brand as a combination of attributes, communicated through a name, or a symbol, that influences a thought-process in the wit of an audience and creates value. And this is what Blackett assured when he mentioned that the visual distinctiveness of a brand may be a combination of any of the following name, letters, numbers, a symbol, a signature, a shape, a slogan, a color, a particular typeface. (3)Also, Davis (2) defined the brand term as all the promises and perceptions that an organization wants its customers to feel about its product(s) and service offerings. (2) Now, despicable to the branding concept or term, according to Davis (1), branding is a complex process, but its goal is simple it is the creation and development of a particularized indistinguishability for a company, product, commodity, group, or person. (3) Grimaldi mentioned an interesting definition for branding The blend of art and science that manages associations between a brand and memories in the mind of the brands audience. And this blend involves focusing resources on selected tangible and intangible attributes to differentiate the brand in an attractive, meaningful and compelling way for the targeted audience. Now, after understanding what is meant by both brand and branding terms, its time to know what is meant by brand equity term or concept.The brand equity concept emerged in the early 1990s, (Tuominen 96) and introduced in marketing literature in the 1980s (Rajh 1) and before mentioning definitions of this term, it is necessary to realize that brand equity is the key to understanding the net impact of marketing (Reynolds and Philips qtd. in. Binnie 16) According to Hoeffler and Keller, most definitions of brand equity rely on brand knowledge structures in the minds of consumers individuals or organizations- (421 qtd. in. Binnie 17). And Pullig gave a simple definition to the term brand equity as consumer brand knowledge.Keller also defined the brand equity term as the differential consumer response from erudite the brand. (qtd. in. Binnie 17) According to Keller and Kevin, brand equity is the value of the brand in the marketplace (qtd. in. Pullig). McDonald added another dimension when she defined it as the stored value built up in a brand which can be used to gain market advantage (2). So, after studying these definitions, it is obvious -as Tuominen mentioned- that there are leash key ingredients in the brand equity definition and they are (1) brand knowledge, (2) differential effect, and (3) consumer response to marketing. (75)Finally, according to these definitions, it is obvious that (1) branding is the process of creating, developing, protecting, and manag ing the special identity of the product, or the brand (to differentiate it in the marketplace) and it is not only marketing effort, it includes all the companies efforts to build this differentiation (2) the brand is the end result of that process or the combination of all the tools used to create this special identity of the product and (3) the brand equity is the feedback of the branding process or the key to measure, assess, or numerate the end result brand as we saw previously in the Coca-Cola example- and compare it with what is desired or planned in the branding process. In another word, brand equity will show whether the branding process and other marketing efforts (or even public relations) are on the right track or not.