OutStyle Brand equity refers to the intangible value that accrues to a company as a result of its successful efforts to establish a strong brand. A brand is a name, symbol, or other feature that distinguishes the company's goods or services in the marketplace.
OutStyle Brand equity refers to the intangible value that accrues to a company as a result of its successful efforts to establish a strong brand. Consumers often rely upon brands to guide their purchase decisions. The positive feelings consumers accumulate about a particular brand are what makes the brand a valuable asset for the company that owns it.
Alan Mitchell of Marketing Week described brand equity as "the storehouse of future profits which result from past marketing activities. Knapp explained in an article for Risk Management. A consumer who prefers a particular brand basically agrees to select that brand over others based primarily on his or her perception of the brand and its value.
The consumer will reward the brand owner with dollars, almost assuring future cash flows to the company, as long as his or her brand preference remains intact.
In order to benefit from the consumer relationship allowed by branding, a company must painstakingly strive to earn and maintain brand loyalty. Building a brand requires the company to gain name recognition for its product, get the consumer to actually try its brand, and then convince the buyer that the brand is acceptable.
Only after those triumphs can the company hope to secure some degree of preference for its brand. Name awareness is a critical factor in achieving brand success. Companies may spend vast sums of money and effort just to attain recognition of a new brand. But getting consumers to recognize a brand name is only half the battle in building brand equity.
It is also important for the company to establish strong, positive associations with the brand and its use in the minds of consumers. The first step in building brand equity is for the company to define itself and what it hopes to represent for consumers. When all of these elements support a distinctive image of the company and its products in the minds of consumers, the company has established brand equity.
|Brand Equity - advantage, benefits, Building brand equity, Measuring and protecting brand equity||Brand Equity Brand Equity When people speak of "brand equity" they mean the public's valuation of a brand. Brand equity is associated with wide recognition, customer loyalty, and the market share enjoyed by the branded product or service.|
|Brand Equity vs. Brand Value: What's the Difference? | Aaker on Brands||Foremost, consumer perception, which includes both knowledge and experience with a brand and its products, builds brand equity.|
Real business performance therefore equals short-term results plus shifts in brand equity. It is also dangerous to assume that simply because its brand is well-known, a company enjoys strong or growing brand equity.
In fact, the most powerful brands can easily be diluted by company missteps or inconsistent marketing messages. Mitchell explained that the best way to measure brand equity depends on the particular company and its industry. For example, in some cases assessing consumer perceptions of product quality may provide the best indication of brand equity.
In other cases, more traditional business measures such as customer satisfaction or market share may be more closely correlated with brand equity. Finding an appropriate measure of brand equity is vital in order for companies to ensure that they protect this valuable asset.
In his Risk Management article, Knapp claims that managers must remain constantly vigilant to protect their brand equity, since a declining brand image poses a significant risk to company earnings.
Jul 08, · Your brand represents so much more than a logo, and that’s especially true for your users. Developing a strong and dynamic brand creates a solid foundation for your company, but the success of that brand over . Jul 08, · Brand equity is more of a concept than anything else and acts as a framework for understanding the power of consumer’s emotions in relationship to your positioning. Definition of brand equity: A brand's power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume and higher profit margins against competing brands.
If a brand loses its distinctive image in the minds of consumers, then the branded product becomes more like a commodity and must compete on the basis of price rather than value.
Customer loyalty decreases, which has a corresponding negative effect on market share and profit margins.
In order to prevent this decline, Knapp recommends that companies consider the impact of major decisions on consumer perceptions and brand equity.
Every action taken by management—including the introduction of new products or advertising strategies, or the decision to lay off employees or relocate a factory—should be assessed for its effect on brand equity.
In the late s, many companies attempted to extend their brands into the field of electronic commerce. But doing business online proved difficult even for established businesses with popular brands.
In the offline world, those relationships are forged by a sales force that calls on customers face-to-face. Successful online brands must deliver those same elements, and more, through the use of technology. First, the company must decide whether or not to use its offline brand name in its new online venture.
This strategy may prove effective in cases where the online business is a straightforward extension of the existing brand, but it may also have the effect of diluting the brand equity. Second, Garner says that companies should develop an understanding of the benefits they want to deliver through the online business and assess how technology can help in this mission.
Finally, she recommends that companies find ways to use Internet technology to create a rewarding shopping or purchase experience for their customers.Definition of brand equity: A brand's power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume and higher profit margins against competing brands.
Brand equity refers to the intangible value that accrues to a company as a result of its successful efforts to establish a strong brand.
A brand is a name, symbol, or other feature that distinguishes the company's goods or services in the marketplace. Find the latest marketing & advertising Insight, News & Articles from all top sources for the Indian Tech industry on ET BrandEquity. Brand equity is a critical part of building a business, and companies that successfully build one understand just how important it is to the bottom line.
However, it takes time, patience, and a great deal of effort to build positive brand equity as you’ll learn in my new series, Brand Equity Basics.
Brand equity is a major indicator of company strength and performance, specifically in the public markets. Often, companies in the same industry or sector compete on brand equity. For example, an EquiTrend survey conducted on July 14, , found that The Home Depot was the No.
1 hardware company in terms of brand equity. Definition of brand equity: A brand's power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume .