Brand equity is the commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself. Companies can create brand equity for their products by making them memorable, easily recognizable, superior in quality, and consistently reliable. It is based on the idea that the owner of a well-known brand name can generate more revenue simply from brand recognition, as consumers perceive the products of well-known brands as better than those of lesser-known brands.
When it comes to brand equity, there are 5 elements that make up the subject:
Awareness - Attention to the brand name among target clients is the initial phase in the value building process. Mindfulness basically implies that clients think about the presence of the brand and can likewise review what class the brand is in. Building awareness involves making the brand visible to the relevant target audience by various promotional methods such as publicity, sponsorships, events, advertising, instigating word-of-mouth promotion, etc.
Brand Associations - Anything that is associated with the client's memory about the brand is an affiliation. Clients form associations based on quality discernments, how brands treat their employees, promotions, and advertisements of the brand, prices at which the brand is sold, item classes that the brand is in, displays in retail locations, exposure in different media, contributions of contenders, big-name affiliations and from what others educate them regarding the brand.
Perceived Quality - Perceived quality is the perception of the customer about the overall quality of a brand. When thinking about product quality, the customer takes into consideration the performance of the brand on parameters that are important to him and makes a relative judgment about quality by assessing competitor’s offerings as well. Therefore, quality is a perceptual entity, and consumer judgments about quality vary. This is important to consider when determining the price point of a product or service.
Brand Loyalty - A client is brand loyal when they buy mostly from one brand from among a lot of options reliably over some stretch of time. In the conventional sense, brand faithfulness was constantly viewed as a determinant of repetitive purchase behavior. Brand loyalty is usually rated as the most important indicator of brand equity because loyalty develops post-purchase and indicates consistent patronage by a customer over a long period of time whereas all other elements of brand equity may or may not translate into purchases.
Proprietary Brand Assets – These include patents, trademarks, and channel relationships. These assets are valuable as they prevent competitors from attacking the company and prevent the erosion of competitive advantages and a loyal customer base.
Here at Bolimini, we discuss many ways of how to protect brands. Even so, it is important for business owners and managers to remember that the makeup of a brand extends beyond tangible assets, patents and trademarks, copywritten material, and the like.
To learn more about how we help you protect your brand, contact us today!