Positive or negative, brand equity is the value associated with a product. Customers’ opinions of a product’s quality, cost-effectiveness, and utility contribute to its perceived value. When consumers have a favorable impression of a product’s brand, they know that it serves their needs and is of excellent quality at a reasonable price.
How Can We Use Marketing to Increase Brand Value?
Brand equity can only be established after a remarkable product has been created for a specific target market. Talk to customers in focus groups and research internet reviews to learn why they enjoy your product.
Public relations, marketing, advertising, sales, and other channels can all contribute to a product’s overall worth. The most common methods are:
Product Introduction
You need to get the word out about your new product to build a positive reputation for your business. At this stage of the product lifecycle, investing time and resources into creating sales momentum through public relations and advertising to establish your product with your target market is essential.
Brand Name Iconoclasm
After introducing your product to the market and getting people talking, the next step is to generate excitement about it. Get started writing about your product and the problem it solves, and you’ll provide potential buyers the knowledge they need to pick your product above the competition.
Repeated Use: Brand Loyalty
Once your product is well-known and respected in your core market, you can expand into adjacent areas with the support of your product’s positive equity score, boosting loyalty and word-of-mouth advertising. Influencer marketing is a terrific way to break into untapped regions, and you could even try out customer video endorsements to bolster your sales materials.
What Role Does Brand Equity Play in a Business?
The term “brand equity” is used to sum up the worth of a brand to a business. This is useful for companies since it shows where their products may be weak, or improvements are needed. This can also aid businesses in assessing their products’ competitiveness.
Two Types of Brand Equity
- When consumers have a favorable impression of a brand, it can command a higher price without losing sales.
- When a company’s brand equity takes a hit, it may be because of flaws in the product’s design or the company’s handling of customer complaints.
Examples of Brand Equity
Although brand equity is difficult to quantify, there are telltale indicators of whether or not your company’s name has positive or negative value in the market. Some of these cases are listed below:
Despite occasionally mediocre offerings, Apple has maintained positive brand equity for many years, resulting in massive customer turnout for annual product releases. Apple’s high equity score results from the high quality of its goods and the undeniable timeless appeal of its designs.
Uber’s reputation was affected for several reasons, but one of the worst was when the company announced holiday price hikes. The average rise for Uber riders was 8.9%, significantly more significant than the rest of the year. Some users have ceased using the service entirely due to this bad experience.