What is Brand Equity?

Business & Management
, ,
#1

In marketing, brand equity refers to the amount of power a brand name has in the minds of consumers and the benefit of having a well-known and well-recognized brand.

Organizations build brand equity by providing customers with great experiences that encourage customers to choose them over competitors that sell identical goods. This is accomplished by raising awareness through marketing related to target-consumer values, fulfilling brand promises and qualifications when customers use the product, and focusing on loyalty and retention.

Brand equity is built on two pillars: awareness and experience.

  • Brand Awareness: Is your brand easily identifiable by your customers? Even if you’re launching a new product, your brand’s messaging and graphics should remain consistent so that customers can recognize it. What ideas do people identify with the brand? Perhaps they consider factors such as long-term viability, high quality, and family friendliness.
  • Brand Experience: What has been your brand’s first-hand experience? This could indicate that the product worked as expected, that interactions with brand representatives and customer service staff were kind and helpful, and that loyalty programs were beneficial.