Marketing Strategy.pptx1111111111201ppt4444

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1. Marketing Strategy

2. Topic :- Customer Equity And Brand Equity

3. Customer Equity Customer equity is the total combined customer lifetime values of all of the company's customers. It is calculated by multiplying the number of customers by the average value of each customer. Customer equity is important because it reflects the potential future revenue that a company can generate from its existing customer base.

4. There are three drivers to customer equity, all of which refer to three sides of the same thing : -

5. Value Equity : What the customer assesses the value of the product or service provided by the company to be. Brand Equity : What the customer assesses the value of the brand is, above its objective value. Retention Equity : The tendency of the customer to stick with the brand even when it is priced higher than an otherwise equal product.

6. Customer Equity Strategy Companies often attempt to gain more customers and increase revenues by improving customer equity. They do this by: improving consumer service, improving the value or desirability of the brand, improving goodwill, improving brand popularity such as by advertisements, improving the trust of the customer towards the brand.

7. Customer Equity Model

8. From the organization’s point of view, any organization would start from the base i.e , from customer attraction. Customer attraction is a process, where the brand communicates with the customers and makes them aware of their presence. Once the customers know about the brand and when they have made a few purchases, customer retention becomes the top priority for the brand (if any organization or brand likes think otherwise, they are in deep trouble). Brand retention is only possible if the brand provides excellent customer experience. From the customer’s semblance, the first question they would ask themselves is, if they want to be a customer of that brand or not. If all factors of the brand satisfy them then the buyer community slowly transforms itself to become a customer. Customer satisfaction is a crucial factor that helps brands retain their customers.

9. Since brand equity is a component of customer equity and the model emphasizes the importance of it, let us comprehend what brand equity is :-

10. Brand Equity Brand equity is the value of a brand, determined by the consumer's perception of its quality and desirability. It is based on factors such as the brand's recognition, customer loyalty, and customer satisfaction. Brand equity is a key factor in a company's success, as it can influence consumer decisions, marketing strategies, and potential partnerships.

11. Brand Loyalty Brand Association Three Elements Of Brand Equity Brand Awareness

12. Brand Awareness: Recognition of the brand by customers and potential customers. Awareness increases the rest of the brand equity components thereby helping consumers associate with it. Brand Loyalty: Customers’ willingness to purchase from the same brand over time. A loyal customer is always a returning customer and is an asset to a brand. A loyal customer is not made overnight. If a customer has a smooth customer journey only then they become your loyal customers. 

13. Brand Association:  Brand associations are the things or characteristics consumers associate with the brand. Color, language, logo are the things that the consumers associate with the brand. Brand association can be established when the brand is proactively interacting the buyer community. There are various brands in the market who are known for their unique ways of staying in touch with their consumers. 

14. Brand Equity VS Customer Equity Customer equity is the lifetime value of all customers and brand equity is the strength and the value of the brand that decides its worth . Customer equity and brand equity have two things in common: Both emphasize on customer loyalty towards the brand. Both stress upon the value that customers add to the brand.

15. Customer equity and brand equity are different : While customer equity emphasizes more on the financial gains got from the customers, brand equity is more about the strategic issues related to managing a brand. Brand equity illustrates the worth of the brand, i.e. the value added to a product by branding it. Customer equity relates to lifetime values that are important to consumers. Customer equity can continue to exist without brand equity and vice versa. For example, a buyer may like both McDonald’s and Burger King, but would more often buy from McDonald’s.

16. T h a n k Y o u !