Brand equity is a solution to increase your company's closeness to customers.
In this era of easily accessible information, customer relationships with companies are no longer limited to the quality of their products. However, image is also influenced by other factors, such as treatment of employees, concern for the environment, and the company's contribution to society.
To stay ahead in the midst of competition, companies must start considering initiatives that can improve the company's image. When a company's image improves, customers will become more loyal and income will be higher.
Brand equity includes how customers perceive and respond to a company's entire ecosystem. This includes the values that are firmly held and the extent to which the company maintains its commitment to non-product aspects.
Understand more about what is meant by brand equity, its elements and benefits for companies in the following review.
Brand equity is the added value of a company compared to competitors which is reflected in customer and market perceptions.
Companies build brand equity by creating positive experiences that attract customers to make their products preferable to other products.
Brand equity is formed when a company's campaign is in line with customer value and retention efforts after product use.
There are several elements of brand equity that can produce loyal customers if implemented well by the company.
David Aaker, a modern branding expert formulated the elements of brand equity. Here are the four most important elements:
Brand awareness is the first step in building brand equity. This is because customers must first know and remember your brand before they can form a positive perception of it.
Apart from that, brand awareness also involves customers' ability to remember your brand when they are presented with a stimulus. This stimulus includes advertisements or talking to friends.
Companies must ensure that their marketing strategies create strong and sufficient brand recognition.
Brand attributes are special characteristics that are attached to a brand and help in forming a brand image in the eyes of consumers. This element plays a very important role in forming brand equity because it creates differentiation among competitors.
Brand attributes include product characteristics, brand values, packaging design, or other elements that make the brand stand out. For example, a clothing brand may be known for superior quality materials or innovative designs.
The perceived quality element reflects customer perceptions of the quality level of a brand and the products it produces.
Not just a one-time assessment, customers will consider the consistency of quality after repeated use. Maintaining this quality will always increase overall brand equity.
This element describes the extent to which customers are willing and inclined to choose your brand consistently and loyally over a certain period of time.
This stage can be seen when customers consistently choose your brand in various purchasing situations. Even when they have to pay more or travel longer distances.
By understanding and managing these elements, companies can create strong customer loyalty and increase their brand value in the market.
Are the series of elements above worth fighting for in order to achieve brand equity? Yes, because brand equity is the key to providing the following benefits for your company:
Through customer trust and loyalty, brand equity will make your market share even greater.
Apart from that, customers also tend to share their positive experiences with your brand with their audience. So, the market share can be even wider.
Brand equity creates a higher perception of value in the eyes of customers. Customers already trust the quality and reliability of your products. So, it doesn't matter when they have to dig deeper into their pockets.
However, price increases must still be done carefully and in accordance with customer perceptions. Otherwise, price increases will actually get a negative reaction.
Brand equity can give a company a significant advantage in adding product lines.
When the audience is familiar with a brand's products, customers will be more encouraged to try other new products. Moreover, regarding the quality guarantee that the brand has been providing for a long time, launching a new product line will not be too difficult.
In the end, brand equity will provide greater opportunities for the company.
Companies will have better bargaining power when negotiating with business partners including suppliers, distributors and retailers.
With strong brand equity, the company will be more solid in facing market fluctuations and other economic challenges.
That's the information you need to know about what brand equity is, its elements and benefits for the company. Promotions may create attraction, but customer loyalty and brand attachment form a longer relationship.
Brand equity is one of the many brand strategies that exist. You can learn more by taking part in the Strategic Brand Management short program from Prasmul Eli.
In the 2-day program, the scope of learning includes:
There are also two workshop sessions and presentations as practice. Register yourself via the following link to take part in the class which will be held on 22-23 October 2024.
Brand equity is a solution to increase your company's closeness to customers.
In this era of easily accessible information, customer relationships with companies are no longer limited to the quality of their products. However, image is also influenced by other factors, such as treatment of employees, concern for the environment, and the company's contribution to society.
To stay ahead in the midst of competition, companies must start considering initiatives that can improve the company's image. When a company's image improves, customers will become more loyal and income will be higher.
Brand equity includes how customers perceive and respond to a company's entire ecosystem. This includes the values that are firmly held and the extent to which the company maintains its commitment to non-product aspects.
Understand more about what is meant by brand equity, its elements and benefits for companies in the following review.
Brand equity is the added value of a company compared to competitors which is reflected in customer and market perceptions.
Companies build brand equity by creating positive experiences that attract customers to make their products preferable to other products.
Brand equity is formed when a company's campaign is in line with customer value and retention efforts after product use.
There are several elements of brand equity that can produce loyal customers if implemented well by the company.
David Aaker, a modern branding expert formulated the elements of brand equity. Here are the four most important elements:
Brand awareness is the first step in building brand equity. This is because customers must first know and remember your brand before they can form a positive perception of it.
Apart from that, brand awareness also involves customers' ability to remember your brand when they are presented with a stimulus. This stimulus includes advertisements or talking to friends.
Companies must ensure that their marketing strategies create strong and sufficient brand recognition.
Brand attributes are special characteristics that are attached to a brand and help in forming a brand image in the eyes of consumers. This element plays a very important role in forming brand equity because it creates differentiation among competitors.
Brand attributes include product characteristics, brand values, packaging design, or other elements that make the brand stand out. For example, a clothing brand may be known for superior quality materials or innovative designs.
The perceived quality element reflects customer perceptions of the quality level of a brand and the products it produces.
Not just a one-time assessment, customers will consider the consistency of quality after repeated use. Maintaining this quality will always increase overall brand equity.
This element describes the extent to which customers are willing and inclined to choose your brand consistently and loyally over a certain period of time.
This stage can be seen when customers consistently choose your brand in various purchasing situations. Even when they have to pay more or travel longer distances.
By understanding and managing these elements, companies can create strong customer loyalty and increase their brand value in the market.
Are the series of elements above worth fighting for in order to achieve brand equity? Yes, because brand equity is the key to providing the following benefits for your company:
Through customer trust and loyalty, brand equity will make your market share even greater.
Apart from that, customers also tend to share their positive experiences with your brand with their audience. So, the market share can be even wider.
Brand equity creates a higher perception of value in the eyes of customers. Customers already trust the quality and reliability of your products. So, it doesn't matter when they have to dig deeper into their pockets.
However, price increases must still be done carefully and in accordance with customer perceptions. Otherwise, price increases will actually get a negative reaction.
Brand equity can give a company a significant advantage in adding product lines.
When the audience is familiar with a brand's products, customers will be more encouraged to try other new products. Moreover, regarding the quality guarantee that the brand has been providing for a long time, launching a new product line will not be too difficult.
In the end, brand equity will provide greater opportunities for the company.
Companies will have better bargaining power when negotiating with business partners including suppliers, distributors and retailers.
With strong brand equity, the company will be more solid in facing market fluctuations and other economic challenges.
That's the information you need to know about what brand equity is, its elements and benefits for the company. Promotions may create attraction, but customer loyalty and brand attachment form a longer relationship.
Brand equity is one of the many brand strategies that exist. You can learn more by taking part in the Strategic Brand Management short program from Prasmul Eli.
In the 2-day program, the scope of learning includes:
There are also two workshop sessions and presentations as practice. Register yourself via the following link to take part in the class which will be held on 22-23 October 2024.
