Brand Equity: Definition, Benefits, and How to Improve It

Brand equity is one of the main factors that determine the value of a brand. Through brand equity, you can find out how consumers think or view the value and strength of the brand. 

That is why having good brand equity is essential for long-term business success. Here is information about the definition and how to increase brand equity effectively: 

Understanding Brand Equity

When discussing what brand equity is, you can understand it briefly as a term that defines the value of a brand. One of the factors behind brand equity is the consumer experience with the brand. 

Through experience, consumers’ thoughts and opinions about the brand will be formed. If consumers’ thoughts about a brand are positive, its equity will increase. The chances of the brand gaining trust and loyalty from consumers are even greater. 

According to marketing expert David Aacker , brand equity is a number of assets or liabilities in the form of brand visibility and associations as well as customer loyalty that can increase or decrease the value of a brand’s products or services. 

According to Aacker, there are five main elements of brand equity which consist of:

• Brand 
  

  Loyalty​

When consumers strongly believe in the value that a brand offers, then the consumer will continue to subscribe and not buy from other brands.

A high level of brand loyalty ensures that a business can grow consistently and steadily. Businesses can also gain a larger market share.

• Brand Awareness (( Brand Awareness )

This brand equity element refers to the extent to which a brand is known to consumers. When a brand has high equity, consumers are more likely to think of that brand when looking for a specific product. 

Take the brand ‘Blue Band’ for example, which comes to mind when consumers think of margarine products.

• Perceived Quality​

Furthermore, brands with high equity have a good reputation in terms of product quality. Quality in brand equity is a factor that consumers think more about than product features. Although it is more expensive, consumers do not mind as long as the quality is commensurate.

By employing our cutting-edge data packages, you may enhance your company’s status and raise public awareness of your brand, product denmark phone number library and business. Think positively and let go of your anxieties.International Dialing Code: +45 is the international code for Denmark. Local Code: The local codes in Denmark may vary depending on the location. Phone: The number that you were able to locate. ​

Everything related to a brand, whether it is positive or negative sentiment, is included in the brand association element. This can include the social, functional, and emotional benefits of a product. 

• Other Proprietary Assets

The meaning of this one brand equity element refers to trademarks, patents, and trading partners of a brand. These ownership assets are a guarantee that other brands cannot compete using similar identities and confuse consumers.

 

Benefits of Brand Equity

Brand equity is one of the main factors that your business needs to have if you want to be successful. Here are the main benefits of brand equity:

1. Survive the Competitive Market

Examples of brand equity are Samsung and Apple that remain among other gadget brands with their cheapest price competition. This indicates that the equity of both brands is guaranteed so that they are protected from changing market conditions. 

Regardless of the number of competitors, changing trends, and consumer demands, strong brand equity ensures that your business remains stable. 

2. Low Price Elasticity

Brand names with high equity can charge a premium for their brand value and strength. However, consumers remain loyal and do not switch to lower-priced brands. This means that brand price elasticity is low and can be profitable for businesses.

3. Expanding Market Share

Consumers will find it easier to make decisions france mobile phone numbers list to buy products or services from brands with high equity. This is because their level of trust in the brand is also high. This helps businesses build a loyal customer base. So, expanding market share is more likely to be done.

4. Can Expand Product Lines

Expanding product lines is not a problem for brands with high equity. Because, brand equity is a reflection of the value of a brand. Apple is an example of a brand that has many product lines but is still in great demand. This is because the brand has positive associations so that customer loyalty is very high.

5. Easy to Connect with Stakeholders

Stakeholders such as customers, investors, suppliers, and employees can be more easily accessed by high-equity brands. More importantly, competent and qualified stakeholders. 

This is considering the positive brand ao lists value, so that stakeholders’ trust in becoming part of the brand is higher.

How to Increase Brand Equity

You now understand that brand equity is an important factor in business progress. In order to increase brand equity, you can find out How to Apply and Examples of Brand Equity Models and do various ways below:

1. Build Brand  Brand Equity: Definition Identity

Building a brand identity is more important before maximizing the growth of your brand value. This ensures that your brand is clear, unique, attractive, and easy to remember by consumers. 

Match your brand identity to your business products or services. Provide information such as your vision and mission to your business’s selling points. Including what are the advantages of your product compared to similar products from competitors.

2. Optimize Customer Experience

You need to ensure that customers experience a smooth experience from the beginning to the end of the transaction process. One trick to optimize customer experience in brand equity is to provide a free trial. So, you can find out the areas that need improvement.

3. Emphasize Brand Values

Also emphasize brand values ​​to create urgency and attention for target consumers to make a purchase immediately. Show that the business has the same principles as the target consumer.

For example, show that your business only sources raw materials from local farmers. This is certainly an attraction for consumers who prioritize empowerment.

4. Develop an Ideal Marketing Strategy

Develop an ideal strategy so that product marketing can convince consumers that your brand is the best. Adjust the marketing approach to the business niche to be more effective. 

If you are targeting young consumers, you must market your products on social media. So, you can reach potential customers more easily.

5. Build Relationships Consistently

You need to build networking consistently through direct interaction with stakeholders. In addition, build intense relationships with customers through event hosting and Q&A on social media.

Successful Brand Equity Case Studies

After understanding what brand equity is along with its elements, benefits, and how to improve it, let’s look at the brands that have successfully built their equity.

One example of brand equity is ‘Aqua’. As a mineral water brand, Aqua is often a general term referring to bottled mineral water. This often happens in everyday conversations.

Although the brand of mineral

Water purchased is not actually from Aqua, consumers tend to think of Aqua when discussing mineral water. This incident shows that the brand equity of ‘Aqua’ is very strong so that it creates a significant impression for the public. 

Brand equity is an essential factor that you need to have for long-term business success. Building brand equity with Dreambox will help you realize it effectively. Comprehensive Strategic Branding services are available as a solution for your brand. Let’s contact us for a more detailed brand equity consultation!