What is Brand Equity?
Brand equity is a marketing term used to refer to the marketing impact of a given product in association with a brand name. It tries to examine how a given product will perform in the market if it did not have the privilege of that brand name. Therefore, the basis for brand equity and its impact on a business is based on the knowledge of the customer about that product. And yet, brand plays a vital role in helping build that knowledge and awareness, as well as the choices they make based on that knowledge.
Brand equity, then, reinforces the significance of a brand's value and produce that positive type of recall in the mind of consumers. Marketing research has revealed that brand equity is one of the most important asset to the company.
Three Perspectives of Brand Equity
As an intangible asset, brand equity only gets its meaning out of the perceived quality and associations made by a consumer on a given product. Brand equity can be viewed in three different perspectives:
• Financial: One way to understand the value of brand equity is to calculate the premium that is placed on a product. To further understand, take for example two types of products: one that is of a recognized brand, and the other is unrecognized brand. Consumers are willing to pay a bigger amount for the branded product over those which they are unfamiliar with.
• Brand Extensions: When certain products attain a certain level of commercial success, most companies consider extending their line by introducing newer products under their brand. Because of the existing brand awareness, these companies will no longer invest on large advertising expenditures just to make that newly introduced product known.
• Consumer-based: The trust and attitude exhibited by a customer towards a given product is impacted by the associations they make with that brand. Oftentimes, these associations are a product of their own experience with using the brand. Therefore, actual experience plays a crucial role in the marketing strategy, especially in a developing brand.
Benefits of a Strong Brand Equity
Not all brand equity is positive, therefore most companies invest on building a strong brand equity. After all, it offers several benefits to the company. Below are just some of the helpful benefits that a company can derive of a good brand equity:
• Establishes a more reliable stream of income.
• By increasing brand equity, companies are also able to increase their profits through increased market share and premium pricing for less promotional costs.
• If you have established a good brand, then you can sell that brand name at a given price.
Managing Brand Equity
There are three stages involved in creating, building, and managing your company's brand equity. They are outlined below:
1.) Your first step involves the introduction of a product of a given brand into the market. You must establish a certain standard for that brand to be able to launch products in the future that will sell in the market. Your aim here is to produce a positive response from the consumer to build trust among consumers.
2.) Try to produce a brand that is unique and yet memorable. The attitude of your brand must be accessible to consumers and must also provide benefits to satisfy its users.
3.) Consistency is the key. Your message must be synchronized with your company's overall image and reinforce the value espoused by your organization. This is one of the most effective ways to build a strong brand equity.
Comments
Menu
My Articles
Increased Brand Credibility Means Increased SalesHow Can You Measure A Brand?
Increasing Brand Recognition For Improved Sales
Boost Your Branding With A Slogan
Creating A Business Brand Through A Down Economy
Brand Valuation For More Effective Marketing
Effect Of Word-of-Mouth Marketing On Your Branding Strategy
Elements Of An Effective Business Brand
Essential Tips For Effective Business Branding
Creating A Strong Business Brand
Importance Of Branding Your Business
Color Coordinated Business Branding
Managing And Reviewing Your Business Brand
Expanding Your Business Branding Online
Business Branding Strategies And Tips
Building A Business Brand Through Company Image
Business Branding That Drive Sales
What Is Brand Equity?
Creating Powerful Message With A Potent Branding System
Impact Of Internal Branding In Your Marketing Efforts
The Significance Of Logo In Branding Strategy
The Art Of Internet Branding
Common Branding Mistakes And Myths To Avoid
Business Name And Branding
Related Sites | My Articles Creating A Business Brand Through A Down Economy Branding in a Troubled Economy A good business brand is one.. Creating A Strong Business Brand Creating a business brand is one thing, but creating a strong.. Boost Your Branding With A Slogan What is a Slogan? Any form of business branding plan must involve.. The Art Of Internet Branding What is Internet Branding? Internet branding is one strategy.. |
|
|
Related News:
|