While the term brand equity sounds complicated, it really isn’t. There are some simple techniques that can help you determine the equity in your brand. Brand equity is used in marketing and the simple definition is that brand equity is how much a name brand is worth. Each brand name has a certain dollar value, and the bigger the brand, the more equity in the name. If your business name carries a lot of weight you can automatically make more money from your products. If you have little brand equity, your company has to work harder for those profits. The definition of brand equity falls under three major headlines.
Loyalty To The Brand
When customers are loyal to your brand, you have a huge advantage. If a competing business is threatening you, you have more time to respond because your loyal customers will support you. It is also easier to attract new customers when you already have a respected name. You can leverage the value of your name if need be and you won’t have to spend so much on marketing because your name is doing the marketing for you.
Awareness Of Your Brand
When people are aware of your brand, you can build off of that and branch out to new products. Since people are already familiar with what you do, they develop an automatic preference and liking for your brand and any new ones you introduce. One of the most important things about good brand equity is that it increases your market visibility and helps you remain on top of the competition.
Customers automatically trust you because they know you are committed to your brand.
Associations With Your Brand
Positive brand associations help you communicate information to your customers successfully and gives you a unique marketplace position. Your customer has reasons to buy and they feel good about your brand and their purchases. They are more likely to buy other things from your brand when they feel good about it.
Strategies For Maximizing Brand Equity
There are certain ways you can maximize your brand equity. Creating distinctive products is one of them. Your products might be similar to other products on the market, so it is important to market your products effectively so they seem unique. You need to make these products distinctive. One way to do this is to ensure that your products bring your brand to mind. If the customer only thinks of your brand when they see this product, even while there are other similar products on the market, you will get the sales and the competition won’t. A good logo can help you achieve this. Your brand identity is everything and it is worth the investment to develop a solid brand identity for your products.
Make Your Business Different
Change is crucial when you are marketing your business. Change is going to happen with or without you and if you aren’t flexible, your company could be in trouble. The power of your brand depends on you constantly setting your products apart from the competition. You want to show that you are different from your competitors and if you can do this successfully you will always get the highest prices. You can charge more for your products when you are on top.
The businesses without brand equity will lower their prices to try to gain market share, but this strategy won’t be successful because their brand equity is missing. If you are worried, you can offer lower prices items around your main flagship item. Apple does this with their fringe products like cases and chargers. This retains customers and prompts them to buy all their products from Apple.
Change And Forward Movement Is Everything
Behind every successful brand are thousands of brands that have crashed and burned. These bankrupt companies failed to progress and change, even while the marketplace was changing around them. If you don’t change you die. You have to listen to the market and if you don’t heed their call, you will go out of business fast. Listen to the marketplace and win.