Brand equity describes the level of sway a brand name has in the minds of consumers, and the value of having a brand that is identifiable and well thought of.
Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability.
Brand Equity is the value of a brand , or can be summarized as the perceived value by consumers over other products. The equity of your brand is important because, if your brand has positive brand equity , you can charge more for your products and services than the generic products or other competitors.
Brand equity has four dimensions— brand loyalty , brand awareness , brand associations , and perceived quality, each providing value to a firm in numerous ways. Once a brand identifies the value of brand equity, they can follow this roadmap to build and manage that potential value.
Example of Brand Equity An example of a brand with high brand equity is Apple. Although Apple’s products are very similar in terms of features to other brands, the demand, customer loyalty, and company’s price premium are among the highest in the consumer tech industry.
Brand equity is a marketing term that describes a brand’s value. That value is determined by consumer perception of and experiences with the brand . Positive brand equity has value: Companies can charge more for a product with a great deal of brand equity .
Some examples of firms with brand equity—possessing very recognizable brands of products—are Microsoft, Coca-Cola, Ferrari, Apple, and Facebook. If done right, a brand results in an increase in sales for not just the specific product being sold, but also for other products sold by the same company.
Nike has successfully created a strong brand by fulfilling the pillars of brand equity, which include: brand loyalty, brand awareness , brand associations and perceived quality. Strategic marketing messages, combined with quality products have allowed for Nike to excel in each dimension of brand equity.
The Keller model is a pyramid shape and shows businesses how to build from a strong foundation of brand identity upwards towards the holy grail of brand equity ‘resonance’: where customers are in a sufficiently positive relationship with a brand to be advocates for it.
The four benefits of brand equity are: Less-drastic declines in revenue when the team loses. Ability to charge price premiums. Greater corporate interest.
In this method of brand equity measurement, brand value is calculated by first taking the price difference between the branded product and a generic product, and then multiplying the difference with the total branded sales volume.
The most important components of brand equity are the following: Brand Awareness. Customer Experience. Customer Preference.
Here are four steps to building a successful brand . Define how you want to be perceived. Organize your business based on this promise. Communicate your promise. Be consistent.
Build Brand Equity Step 1 – Identity: Build Awareness. Begin at the base with brand identity. Step 2 – Meaning: Communicate What Your Brand Means and What It Stands for. Step 3 – Response: Reshape How Customers Think and Feel about Your Brand . Step 4 – Relationships: Build a Deeper Bond With Customers.
The brands of the world with the highest brand equity.
|Brand||Brand Equity (USD, billions)||% of Market Cap|