Brand Measurement is the key to assessing the strength of brand equity . The four core elements of awareness , loyalty , brand association , and perceived quality form a solid foundation for a brand to shine and endure.
Find out what Brand Equity is?
Brand Equity or brand value is understood as the value that a brand brings to a business through factors such as customer awareness, trust, and loyalty to that brand's products or services.
When a brand has high value , consumers are willing to pay more for the brand's products, even ignoring cheaper options from competitors. This creates an intangible but extremely important asset for any business.
Factors that create brand equity
Understanding the elements that create brand value helps businesses not only build but also maintain strong brand value.
1. Brand Awareness - Brand Awareness
An important element of brand equity is brand awareness . Consumers need to know that a brand exists, either through marketing campaigns or through regular exposure to the product. Brand awareness is not simply about consumers remembering the brand name, but also about positive impressions associated with the product or service.
2. Brand Loyalty - Brand loyalty
Brand loyalty is a key factor in customer retention. When a brand has built trust and commitment with customers, they will continue to return to use the product despite the appearance of many cheaper competitors. Brand loyalty brings long-term benefits, helping businesses not to spend too much on marketing campaigns to retain customers.
3. Brand Association - Brand association
Brand associations are the emotional values, images, or characteristics that consumers associate with a brand. For example, when thinking about Coca-Cola , consumers may associate it with a feeling of coolness and refreshment. This association helps the brand stand out and be memorable in the minds of consumers.
4. Perceived Quality - Perceived Quality
Perceived quality reflects not only the actual quality of a product but also the customer’s expectations of that product. If customers believe that a brand provides high quality, they are willing to pay more and return to buy frequently. Perceived quality is a key factor in enhancing brand equity .
The Role of Brand Equity in Marketing
Brand Equity is of great importance in marketing strategy. A brand with high equity will easily penetrate new markets, reduce advertising costs due to strong brand awareness from before. Moreover, high brand equity helps the product to have a better position in the minds of customers, leading to a strong competitive advantage.
Examples of brands with “positive” equity
Coca-Cola is a prime example of a brand with positive equity . Over the past 130 years, Coca-Cola has built a strong brand image, not only through the quality of its products but also through innovative marketing campaigns, creating a huge brand equity . Coca-Cola's brand equity is now among the largest brands in the world, with strong loyalty and recognition from customers around the world.
Examples of brands with “negative” value
In contrast to Coca-Cola, a brand with negative equity could be a brand that has lost customer trust due to product quality issues or ethical violations. A prominent example is PepsiCo in the 90s, where the company made mistakes in advertising and products, leading to a loss of customer trust, causing the brand value to decline significantly over a long period of time.
Why Brand Equity is Important in Marketing
In today's fiercely competitive environment, Brand Equity is the weapon that helps brands overcome their competitors. It helps businesses not only attract new customers but also retain existing customers, reduce marketing costs and increase profits. High brand value also helps businesses easily negotiate and gain advantages in cooperation agreements, as well as expand the market.
3 Strategies to Build Sustainable Brand Equity
To build sustainable brand equity , businesses need long-term strategies that focus on both attracting new customers and retaining existing customers. These strategies help strengthen brand recognition and create a competitive advantage. Here are three key strategies for developing strong brand equity .
1. Aim for product quality
Quality is the core foundation of any brand equity . If the product fails to meet customer expectations, all marketing strategies will be meaningless. Make sure that the quality of your product always meets or exceeds consumer expectations.
2. Stay true to core values
Maintaining core values not only helps businesses build trust with customers but also strengthens the brand's position in the market. Brands like Apple have been very successful in maintaining core values of innovation, quality and user experience, helping them build strong brand equity .
3. Stay consistent
A key element in maintaining Brand Equity is consistency in brand messaging and image. Every customer touchpoint from advertising, products to customer service should reflect the same brand personality and mission.
Brand Manager Specializing in Providing Brand Equity Consulting Services
Brand Managers play an important role in building and protecting a company’s brand assets . They are responsible for monitoring the growth of brand equity and developing specific strategies to enhance and maintain Brand Equity in a competitive market.
A Brand Manager is responsible for developing and managing a company's brand strategy, with a focus on enhancing brand equity . They provide professional consulting services, helping businesses identify core elements such as brand awareness , loyalty , and perceived quality to build and maintain strong brand equity .
By analyzing the market, competitors, and customer feedback, the Brand Manager ensures that the brand always creates sustainable value and has long-term competitiveness.
Conclude
Brand equity is an intangible yet powerful asset that creates sustainable competitive strength for a business. By building and maintaining factors such as brand awareness , brand loyalty , and perceived quality , a business can develop a strong brand in the market. In a competitive world, investing in Brand Equity is not only an investment in the present but also an investment in the long-term future.