Pam Am is a television show preparing to air on ABC, September 25, 2011. The show is based on Pan American World Airways during the 1960s. The real Pan Am brand collapsed in 1991. With this new show airing it brought to light the concept of brand equity.
A brand is essentially nothing without a strong following from consumers. Brand equity consists of intangible associations about the brand made by consumers. There are various ways to view brand equity, some include: customer knowledge, performance and shareholder value, price premium, customer loyalty or economic value.
Metaphorically, brand equity can be seen as a stream in nature. People may not know how long the stream has been around or how it was created, but they may know that it supports wildlife. Without brand building, people will not know how to connect or how to think of that stream. Brand building aids and persuades consumers to take action on brands. Brand equity is not only the goodwill of the brand itself, but also critical to a brand’s success over time. Marketing campaigns assist in building brand knowledge.
Customer knowledge of a brand differentiates between positive and negative brand equity. It also affects the purchase behavior of that brand. Therefore, it is easy to see how knowledge of a brand directly affects the brand’s financial performance and shareholder value. This is where a strong mass marketing campaign comes to play to improve brand equity. In a marketing campaign it is important to reinforce the importance of goodwill of the brand name to create high sales volume. It’s vital for a brand, especially in a new product launch, to be memorable, easily recognizable, and to stand out from its competition. During marketing campaigns, metrics are used to measure the effectiveness of the campaign.
Knowledge metrics measure a brand’s associations through recognition and top of mind recall. Preference metrics measure a brand’s competitive position in the market and how it compares to competing brands. Financial metrics measure a brand’s monetary value through market share, revenue generated, transaction value and how the lifetime value of a brand remains in the marketplace. Combining these three metrics together ensure that a brand has strength and is valued, which produces positive brand equity.
Not only should the brand itself be concerned with brand equity, but also the advertising agency, the customer, the distribution channels, the media, and financial markets. The functional and emotional associations associated with a brand drive brand equity. Those high emotions consumers feel with a brand keep the brand at the top of the consumers’ minds when purchasing decisions are being made. This makes it important for a brand to be high in awareness with consumers to sustain presence in the market place. The consumers’ awareness and emotional connection leads to perceived quality and eventually brand loyalty.
Brand equity encompasses many aspects and is relevant to current brands. When managing a brand, the customer knowledge is key. Also ensuring that the marketing campaign is meeting the needs of the customers through emotions and metrics will produce a strong brand following. Understanding brand equity makes marketers realize that the brand experience is everything in producing a strong brand in the market. With the new TV show Pan Am about to launch, it is easy to understand why they chose to use a dormant brand like Pan American World Airways. The new TV show is tapping into the emotional ties some viewers may have with the collapsed brand. Because of this, brand equity is relevant because Pan Am has been able to create a strong campaign by utilizing the Pan Am name that resonates with viewers. I feel this was a smart move in branding.