What is brand equity anyway
What Is Brand Equity, Anyway?
Mar 01, †Ј What is Brand Equity, Anyway? explores the way in which brands work, the factors that define the making of a strong brand and how brand strength can be measured and monitored. Part two takes this knowledge forward into creating a measurably successful advertising campaign:Reviews: 1. Mar 01, †Ј A brand equity measure based on consumer commitment to brands. ARE Brand Equity Workshop, New York, February, in Exploring brand equity. New York: ARE, Google ScholarCited by:
When a brand consistently under-delivers and disappoints to the point where people recommend that others avoid it, it has negative brand equity. On a js scale, regional supermarket chain Wegmans has so much brand equity that when stores open in new territories, the brand reputation generates crowds so large that police have to direct traffic in and how to grow blueberry kush of store parking lots.
Financial brand Goldman Sachs lost brand value when the public learned of its role in the financial crisis, automaker Toyota suffered in when it had to recall more than 8 million vehicles because of unintended acceleration, and oil and gas esuity BP lost significant brand equity after the U. Gulf of Mexico oil spill in Achieving positive brand equity is half equjty job; maintaining it consistently is the other half. Get free online what is brand equity anyway tips and resources delivered directly to your inbox.
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Business encyclopedia Learn everything there is to know about running a business. Search Search. Brand Anywat 1 minute read. What is Whzt Equity? Positive brand equity has value: Companies can charge more for a product with a brahd deal of brand equity. That equity can be transferred to line extensions Ч products related to the brand that include the brand name Ч so a business can make more money from the brand.
Recognition Ч Customers become familiar with the brand and recognize it in a store or elsewhere. Trial Ч Now that they recognize the brand and know what it is or stands for, they try it. Preference Ч When eqjity consumer has a good experience with the brand, it becomes the preferred choice. Loyalty Ч After a series of good brand experiences, users not only recommend eqquity to others, it becomes the only one they will buy and use in that category.
They think so highly of it that any product associated with the brand benefits from its positive glow. Examples of Negative Brand Equity Financial brand Goldman Sachs lost brand value when the public learned of its role in the financial crisis, automaker Toyota suffered in when it had to recall more than 8 million vehicles because of unintended acceleration, and oil and gas company BP lost significant brand equity after the U. Joinentrepreneurs who already have a head start. Email address Equiyy updates.
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What is Brand Equity, Anyway? explores the way in which brands work, the factors that. What is Brand Equity, Anyway? is a must-read for those involved with creating, planning and researching effective brands and advertising. Advertising and marketing academics or anyone interested in the field of advertising and brand strategy should add this book to their collection.4/5(2). Muravskii D., Alkanova O., Smirnova M. () What Was Brand Equity Anyway, and How Did They Measure It?. In: Campbell C., Ma J. (eds) Looking Forward, Looking Back: Drawing on the Past to Shape the Future of Marketing. Developments in Marketing Science: Proceedings of . Feldwick, Paul (). What is Brand Equity Anyway, and how do you Measure it?. Market Research Society. Journal., 38(2), 1Ц doi/
In an increasingly competitive marketplace, brands are now more than ever presented with the challenge of capturing and sustaining market share and keeping their customers loyal.
This article will show that one significant way a brand can achieve this is through understanding what is meant by brand equity, and will highlight the importance of building and managing brand equity in the long-term. Brand equity is a multi-dimensional and complex concept, but its understanding remains central to a brand fulfilling its competitive potential.
Its complexity is demonstrated by a wide range of perceived interpretations and attempted definitions by both academics and professionals. Put simply, brand equity represents the value of a brand. It is the simple difference between the value of a branded product, and the value of that product without that brand name attached to it Rosenbaum-Elliott, Aacker has derived a simple framework, which features the key components comprising brand equity: brand awareness, brand association, perceived quality, brand loyalty, and other proprietary assets.
High brand loyalty ensures that business is stable and consistent, and enables the organization to capture a larger market share. A brand with high brand equity will spring to mind when a customer searches for a particular product. Good quality is favored more highly than particular product features, with consumers often willing to pay premiums for high-quality products relative to other brands. Keller, a leading branding author and Professor, has comprised a CBBE brand equity model, whereby brand equity addresses four key questions, which relate directly to how a consumer perceives a brand and their requisite attitudes towards it.
How you communicate what your brand stands for will significantly impact your brand equity. This concerns how consumers respond to your brand, based on their emotions and perceptions. Marketers can reinforce brand equity by actively investing in the components of brand equity. This can be done by creating positive, strong, and unique brand attributes which consumers will retain in their minds, for example, by:.
This is not to say that managers cannot make tactical strategic changes, such as introducing new packaging or rewriting their slogans, if this is necessary to re-align with changing consumer needs, or external economic and social factors.
Here are some examples:. Strong brand associations are crucial to building loyalty towards your brand. Ways of enhancing the way consumers view your brand might include:.
Managers can do this in simple ways such as:. However, it remains an essential function since losing sight of the strength of your brand equity can impact your bottom line and your ability to compete.
This involves measuring brand equity by looking at financial metrics, which reflect the requisite strength of the brand. Such metrics include:. These measurements cannot measure brand equity as such, but are an essential means of insight.
Qualitative methods might include:. Managing brand equity over time is essential in achieving several competitive benefits, which will drive profitable growth. Brands with strong brand equity are in a position to charge premiums, which are not attributable merely to product-related benefits but are attributed to the value and strength of attaching the brand name to that product.
Such products will also enjoy a low price elasticity, meaning that consumers will be less inclined to switch to even those competitors with lower prices. Brands with high brand equity are exposed to significantly less risk when introducing line extensions or extending their brand name to new products since the brand name alone carries a value.
If a high brand equity organization such as Apple were to introduce a new line of products, many consumers would likely not hesitate to purchase them. This is due to the positive associations which the Apple brand triggers, and therefore the brand loyalty it inspires. It improves confidence in the purchase decision Aacker, Therefore, an organization with high brand equity can capture and retain a large portion of the requisite market share by acquiring a loyal customer base and better-withstand promotional pressures from competitors.
Brands need to take a forward-looking approach, recognizing that the added value created by a brand name can act as a security against uncertain market conditions, ever-more-complex consumer demands, shifting behavioral trends, and increasing numbers of competitor market entrants.
Brands with strong brand equity are often better able to attract talent. The same goes for suppliers, who can be more certain of consistent business when entering into contracts. Failing to adequately manage your brand equity can have negative consequences. The brand name attached to the product harms the business, and the company would be better off producing without their original brand name.
A key example is the Volkswagen emissions scandal of , where it was revealed that the brand had been falsifying their emissions figures using technology, which could cheat on emissions tests. The relative perceived quality of Volkswagen contributed highly to this, with consumers undoubtedly feeling as though other mid-market car brands could provide greater overall quality only by fitting their cars with reliable and fully functioning emissions technologies.
Crucially, its brand associations deteriorated since the public could no longer associate the brand with positive feelings of trustworthiness or reliability. Nike has successfully built up strong brand awareness using various sponsorships and advertisements at major sporting events, using bright orange shoe boxes, and creating innovative, customer experience-focused stores.
When consumers think of Nike, a majority of them are confronted by positive brand associations of innovation, motivation, and determination. These positive associations are created predominantly through their inspiring advertising campaigns and collaborations with influential athletes, such as LeBron James or Michael Jordan, which encourages consumers to believe that Nike is just as expert in the retail field as their representatives are in theirs.
This in turn enhances brand loyalty. Consumers feel confident that Nike will deliver consistently high-quality products and customer service. The customer relationship is further enhanced through investment in the customer journey, with collaborative features such as the Nike Run Club, allowing consumers to track their fitness goals and receive top quality coaching, or the ability to personalize sneakers with Nike By You.
Managing Brand Equity. Simon and Schuster. Prentice Hall. Strategic brand management. Oxford: Oxford University Press. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. The Branding Journal is an independent online journal that publishes information and resources about branding strategies worldwide.
The website reports on the importance of branding within marketing strategies and how it empowers organizations and shapes consumer behavior around the world. What is Brand Equity? Author: Abigail February 25, 11 min read. Table Of Contents. Advertising your brand on different media Engaging with various communities on social media Creating viral content videos, campaigns.
Using innovative and eye-catching means of advertising, highlighting the core functional, social, or emotional benefits of your product Ensuring that the business behind the brand is socially responsible and establishes ethical business practices Celebrity endorsement.
Staying in touch with customers via social media Providing excellent customer service at all times Tracking any negative press or feedback, listening and responding. Profit margins Price sensitivity Ч known in economics as price elasticity, and concerns the extent to which consumer demand will react to changes in price Profitability Growth rate Market share percentage Purchasing frequency.
Brands must consistently monitor their brand equity using quantitative or qualitative measures so that their brand strategy can be tailored to strengthen brand equity in line with fluctuating economic trends. Brand Branding Strategy. Leave a Comment Cancel reply Your email address will not be published.
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