[MUSIC] So as you can see from Mr. Schultz's comments, defending a company's brand is essential. And is one of the primary objectives that marketeers should do, which is to increase the value of the brand. We've already seen that establishing precise value metrics is particularly difficult, though not impossible. But at least let me introduce you now to the concept of brand equity. Maximizing brand equity should be one of the chief concerns of marketing departments, and even of the CEO. As is one of the most important assets of the company, and the ones that will ensure future profitability. So what is brand equity? Brand equity is composed of three things. One is brand awareness, a brand cannot have equity if people don't know about it. And now that awareness has to be with the right fit, or the right audience. It is irrelevant if my mother knows what are the features of the new Samsung phones if she only uses What's Up, emailing. And uses the phone to call, all the other stuff is irrelevant. Even the fact that you can actually use it under water. Next, you have to have positive associations. That's the aim of most of the branding efforts on the part of the company, which is to have positive associations. And finally, is loyalty, these three components actually make up brand equity. So what is the objective of branding? Branding, unlike advertisement, is chiefly concerned with the second one of those three levers, in particular that of associations. So let's look at what are the actual four branding objectives. First of all, companies can try to pursue to build a quality reputation. Alternatively, to build a perception of the company as a reliable partner. Third, to frame how consumers perceive the product experience. Or infuse the brand with symbolism, values, and define or reinforce its identity. That's it, that's the objective of branding. Typically you try to one of these four things, and sometimes one or two of these two things. That is what branding is all about. So now I want to give you an example of branding at its best. How do companies go about doing this? Let's look at first as an example of building a quality reputation. A lot of luxury brands, such as Gucci in this particular case, will show you craftsman working at their shop. Putting particular love and emphasis on details and what they do. That's how you can build, for example, the idea of quality. Let's look at the second objective, building the idea that the company is a reliable partner. If you actually look at the campaigns and the commercials from most financial institutions. Since often times, the products are very, very difficult to differentiate. Most of them, most campaigns, will be geared or targeted towards trying to achieve the second branding objective. Of portraying the company as a reliable partner to do business with. And it being there available through the most important decisions and instances of your life. The third objective is trying to frame the consumers to how are they supposed to perceive the product or service consumption experience? This is a case of an espresso, which we have seen in more than one occasions. And finally, this is how some companies go about trying to infuse the brand with symbolism, or product identity, or reinforcement identity. This is the case of the BBVA, the Spanish bank which is the official sponsor of the NBA. And they're trying to bring about the team spirit and the sacrifice and all the values associated to professional sports into its particular brand. And try to adopt some of those values for themselves. So through these examples, you have been able to witness an experience. What are the four key objectives of branding. And how companies should try to have a singular focus on trying to achieve and perfect one of those elements. Now that you know what the branding objectives are, we're going to move on to the next stage. Which is, how to go about branding, or, what is the branding process. [MUSIC]
