It's that time of the year again, where usually, a lot of small business CEO's and entrepreneurs are looking at the revenue goals they set way back in January to what is actually happening now.And then, create a 911-emergency-plan to actually make that revenue goal happen before New Years Eve.This in my opinion, is precisely why a lot of businesses fail within 5 years or less of conception. I don't want this to happen to you ever again.So, I'm going to talk to you about Brand Equity, because like I insinuated, I'm not here to entertain you until your business is no longer in operation. Nope. Not on my watch. So, let's get to it.Brand equity is a marketing term used to refer to the marketing impact of a given product or service in association with a brand name. It tries to examine how a given product or service will perform in the market if it did not have the privilege of that brand name.Therefore, the basis for equity and its impact on a business is based on the knowledge of the customer about that product or service. And yet, brand plays a vital role in helping build that knowledge and awareness, as well as the choices they make based on that knowledge.This then reinforces the significance of a brand's value and produces that positive type of recall in the mind of consumers. Marketing research has revealed that brand equity is one of the most important assets to your company.THREE PERSPECTIVES OF BRAND EQUITYAs an intangible asset, it only gets its meaning out of the perceived quality and associations made by a consumer on a given product. It can be viewed in three different perspectives:#1 FinancialOne way to understand the value of brand equity is to calculate the premium that is placed on a product or service. To further understand, take for example two types of products: one that is of a recognized brand, and the other is unrecognized brand. Consumers are willing to pay a bigger amount for the branded product over those that they are unfamiliar with.
#2 Brand ExtensionsWhen certain products or services attain a certain level of success, most companies consider extending their line by introducing newer products under their brand. Because of the existing brand awareness, these companies will no longer invest on large advertising expenditures just to make that newly introduced product known.#3 Consumer-BasedThe trust and attitude exhibited by a customer towards a given product or service and the associations they make with that brand impact service. Oftentimes, these associations are a product of their own experience with using the brand. Therefore, actual experience plays a crucial role in the marketing strategy, especially in a developing brand.BENEFITS OF A STRONG BRAND EQUITY
Establishes a more reliable stream of income.
By increasing brand equity, companies are also able to increase their profits through increased market share and premium pricing for less promotional costs.
If you have established a good brand, then you can sell that brand name at a given price.
MANAGING BRAND EQUITYThere are three stages involved in creating, building, and managing your company's brand equity. Here they are below:1.) You must establish a certain standard for your brand to be able to launch products and services in the future that will sell in the market. Your aim here is to produce a positive response from the consumer to build trust among consumers.2.) Produce a brand that is unique and yet memorable. The attitude of your brand must be accessible to consumers and must also provide benefits to satisfy its users. (You clearly know already I'm about standing out and standing tall!)3.) Consistency is the key. Your message must be synchronized with your company's overall image and reinforce the value espoused by your organization. This is one of the most effective ways to build strong brand equity.
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