At first glance you might feel like brand equity is a complicated concept and a little bit hard to wrap your mind around and understand, but in reality the term is actually fairly simple and you won’t have to fear it once you really dig in and tackle it. This is a term that is common in advertising and marketing circles, but simply put it refers to the inherent value that comes from having a well-known and widely recognized brand name. This is based around the strongly supported belief that people are more likely to buy from someone will a famous brand versus an unknown brand. The level of recognition and response your brand generates, that’s your brand equity.
There are many different things that can affect the consumer market’s loyalty to your brands, though just a few of the most common are:
– Allows you to reduce marketing costs
– Attracting new customers via awareness
– Attracting new customers via social reassurance
– Gives you time to strategize and respond to any new competitive threats
Awareness of Your Brand
– A base to build off of
– Familiarity, which leads to loyalty and preference
– Visibility to get your brand’s image out there and in the discussion
– Signals your commitment to your customers’ needs
Brand Associations (this naturally will include quality perception)
– Help communicate information
– Claim your higher position in the marketplace
– Provides customers with a reason to buy
– Creates positive feelings and attitudes towards your brand
– Creates the perfect base for expansion and extension
How Can You Maximize Your Brand Quality?
Now that you see just how much brand quality can offer you and your products, the next obvious question that comes up is how you can actually maximize your brand quality so it’s working for you. There are a few things to consider when making a push to help out your brand quality.
Make Sure You Create Distinctive & Noticeable Assets
There’s no question that your best assets are your own products, and while you should take pride in what you produce you also need to be willing to step back and take an honest look to see whether or not what you’re offering is really “one of a kind” or if your product doesn’t really match the marketing hype that you put behind it. The honest truth is that with millions of different businesses out there, it’s hard to believe you’re the only one offering what you offer. For instance, HR Heads offer a breakfast forum every quarter which gives them the opportunity to meet peers, discuss issues etc. This makes a great impression on the public and potential clients.
That’s not a bad thing. While others are fighting the nearly hopeless battle to be completely unique, you can focus on what really matters, and that’s being distinctive so you stand out from a crowd. A lot of people make hamburgers, but you know that means McDonald’s. The five colored rings mean the Olympics. A good brand instantly sticks out. They don’t do something 100% unique but they know how to be distinctive! Keller made a brand equity pyramid to show us just how it should be laid out.
Being able to adapt and be distinctive means you won’t get into price wars because your brand equity will allow you to rely on loyal buyers for that steady stream of income. This gives you a huge advantage over your competitors and can even help you branch off into related areas with related products.
Don’t Be Afraid of Change
To many companies, change is something to be feared and that’s why so many companies have failed when one brand or competitor has forged ahead. If your brand equity is good you can afford to make some mistakes as long as they are mistakes of ambition and not mistakes of sloth. In other words, moving forward will eventually give you something. Even bad products often make money and the company gets the feedback they need to change, adjust, and be all the stronger on top of the market. That’s the type of attitude you need to hit that rare home run in business that builds positive brand equity.