Brand equity refers to the intangible value and reputation that a brand possesses in the minds of consumers. this represents the added value or advantage that a brand has over its competitors due to factors such as brand awareness, perceived quality, customer loyalty, and brand association.
It encompasses the emotions, perception, and experiences associated with a brand. It involves consistency delivering high- quality products or services. Effectively communicating the brand unique value proposition, and creating positive customer experiences.
Brand equity is a measure of a value and influences a brand has in the minds of consumers. which can directly impact a company’s success and growth.
Components of Brand Equity
- Brand Awareness: Awareness is what is the level of awareness about a brand on products and services. Awareness should be high for good brand equity.
- Brand Association: Brand association is anything that a customer relates to their preferred brand. Getting in interaction with brands allows such associations. Having a good brand association is important as it leads to repetitive sales and provides business word of mouth marketing.
- Brand Loyalty: Brand loyalty influences brand equity. Loyal customers do not get influenced by the marketing efforts of its competitors’ brands, there is continuous use of its brand products.
- Brand Identity: The image of what the company is trying to form. Brand identity is created by the company to try to form a positive brand image but it depends on how customers perceive.
- Brand Image: Brand image is that a consumer can create an image of a brand. Either it can be positive or negative. The marketer has built a strong brand image into the customer mind.
- Brand Personality: Brand personality deals with the human characteristics and traits . It reflects the brand’s name , voice, values, and style, which can reflect in the consumer’s mind. And consumers get attached with that particular brand.
Brand Equity is a Valuable asset for any company or organization. It represents the tangible value and strength of a brand. It is important because it can positively impact consumer perceptions, preferences, and behaviors. A Strong brand equity can lead to increased brand recognition, customer loyalty, and competitive advantage. Building and maintaining brand equity requires strategic brand management, consistent brand messaging, high quality product or services, and creating positive customer experience.
