What is brand equity?
In marketing, building a strong brand that customers recognise and perceive as desirable is key to business success. Brand equity is a term that is often used to explain the value of a brand to its target audience when compared to a product that fulfils the same purpose but that does not bear the brand.
For a brand to be successful, it needs to be immediately recognised by its target audience who identify with it, trust it and believe it to be relevant to their lives. Creating and maintaining this loyalty is a significant challenge, so many organisations employ a brand strategy agency to help them create this lasting connection with their consumer base.
Many brand strategy agencies such as reallyhelpfulmarketing.co.uk/specialist-services/brand-strategy-agency can help a business to set itself apart from its competition, by generating the necessary associations that drive brand awareness and association, perception of need and ultimately consumer loyalty.
1. Brand awareness
Brand awareness is the extent to which the target audience recognises the brand when it sees its marketing material, or thinks of the brand when it sees one of its products.
2. Brand association
Brand association describes the emotions that a consumer feels when they think of or see anything related to the brand.
3. Perception of need
When consumers associate positively with a brand, they are more inclined to desire its products or services.
4. Brand loyalty
When the brand delivers against or exceeds the customer’s expectations, the customer becomes loyal and more inclined to make repeat purchases.
By investing in developing strong brand equity, alongside protecting intellectual property, patents, trademarks and business relationships, it is possible to improve a business’s reputation and profitability. A business with strong brand equity that delivers on its promises stands an increased likelihood of success in a competitive marketplace.