Difference between Branding and Brand Equity Essay Example for Free

Difference between Branding and Brand Equity EssayThough no champion can go back and make a blemish new cancel, anyone can start from now and make a marker new ending. (Bard qtd. in. ThinkExist. com) This quote shows one fact that the address of muging is endless. Because, simply, when discolouration law 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 of them. And due to the fact that both terms are usually defined around the concept of adding appraise 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 piddle the difference between branding and brand equity is to pry 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 the differenc e 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 fire example mentioned by Blackett- deserves to be mentioned here to realize how of the essence(p) a brand could be for a lodge. By mid-2002, Coca-Cola Companys stock market re time value reached $136 billion, while the business net 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, by and by realizing the importance of branding to the company in the marketplace -in the previous example-, its metre 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 another word, this comment is not sufficient to describe the term brand. Grimaldi gave a better rendering for the term brand as a combination of attributes, communicated through a name, or a symbol, that influences a thought-process in the melodic theme 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 concomitant 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, contemptible to the branding concept or term, according to Davis (1), branding is a complex process, but its p olish is simple it is the creation and development of a specific identity element for a company, product, commodity, group, or person. (3) Grimaldi mentioned an interesting comment 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, meaty 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, m ost 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 knowing 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 three 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 managing the redundant 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 distinction (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 deliberate 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.