Explain the Aaker brand equity model of five effective strategies to address brand objectives

What will be an ideal response?

Brand Loyalty: Aaker defines brand loyalty as the degree to which customers are satisfied, have some degree of
switching costs (time and money required to change brands, which can discourage some customers from changing
brands), like the brand, and are committed to it. Brand loyalty is important for three reasons. First, it reduces the
cost of sales because the cost of acquiring new customers is higher than that of keeping existing ones. Second,
existing customers can create brand awareness and give assurance to potential new customers. Third, brand loyalty
reduces vulnerability to competitors.
• Brand Awareness: Brand awareness consists of brand recognition (confirming prior exposure to a brand, like
seeing it before in a TV ad) and brand recall (retrieving the brand from memory, given the product category or
some other cue). Recognized and recalled brands are often selected over unknown brands, because many people
assume that familiar brands are likely to be more reliable, have solid financial strength, and are of reasonable
quality.
• Perceived Quality: Perceived quality is the customers' opinion of the brand's ability to fulfill their expectations.
High perceived quality of a brand is important for three reasons. First, it can directly influence purchase decisions
and brand loyalty, especially when buyers are not motivated or able to conduct a detailed analysis (such as
consumer packaged goods like toothpaste and breakfast cereal). Second, it can support a premium price
("expensive but worth it"). Third, it can support a brand extension because it is assumed that the quality will carry
over to the new extension.
•Brand Associations: According to Aaker, brand associations (anything mentally linked to brands) can affect the
processing and recall of information , provide points of differentiation , provide a reason to buy, create positive
attitudes and feelings, and aid brand extensions.
• Other Proprietary Brand Assets: Proprietary brand assets, company assets associated with the brand, like patents,
trademarks, and distribution channel relationships, can help protect brand equity. Patents related to the brand help
to prevent competitors from stealing the intellectual property (ideas, inventions, and other "creations of the mind")
that support the brand. Brand trademarks give a legal recourse to prevent competitors from seeking to confuse
consumers by using a similar name . Distribution channels controlled by the brand can be lucrative assets because
of historical brand performance.