CHAPTER 5
Leveraging Cultural and Political Authority
CRAFTING BRAND STRATEGY requires stepping back to view the brand as a strategic asset. The economic value of a brand—its brand equity—is based on the future earnings stream the brand is expected to generate from customers’ loyalty, which is revealed in their willingness to pay price premiums compared with otherwise equivalent products. Managing this income stream into the future requires a sophisticated understanding of how the brand has acquired its current value.
In the mind-share model, brand equity is based on the strength and distinctiveness of brand associations. The brand essence, lodged in the consumer’s mind, is its source of equity. The more firmly rooted, the stronger the brand. ...
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