Brand equity is a value of consumers’ perception regarding the products, and to measure it we often use various components. One of the sources is advertising, which is essential these days. To build a positive image of the brand, entrepreneurs spend millions of billions on the advertising campaigns, events, or other mediums to create the awareness about the companies.
According to the economics analyst, Aaker, advertising is an enormous contributor to the brand equity. It is using as a defensive mechanism for the brand to compete with their rivals. The general observation is that the brands who spend heavily on advertising are standing at a better place in the market as compared to the ones who don’t like to spend more on endorsing their companies. The perfect example is the Tobacco Auction Floors Company in Zimbabwe, who don’t invest heavily on the advertising to build positive equity, and then they have to hire more directors to maintain their position in the market.
Sources of Advertising
Advertising consists of formal or non-personal communication that conducted through paid media under some vivid sponsorship. According to Kotler, consumers are likely to buy those products which adverts can easily remember. Some prominent sources of the advertising are:
• Outdoor Advertising
• Print Advertising
• Sponsorship Events
• Broadcast Advertising
Outdoor Advertising
Outdoor Advertising comprises of media like posters, kiosks, billboards but transit media in the form of text messages on mobile phones, too. It has a very high frequency and leaves a remarkable influence on consumers. Among all of the above, billboard advertising is an old and famous way to get famous in the town.
Print Advertising
It includes magazines, newspapers, yellow papers, signage & point-of-sales material, and sales collateral. Magazines and newspapers are the main reasons for advertising, but print media also offers other ways like leaflets and fliers and brochures that are also helpful.
Sponsorship Events
Sponsorship events offer the best place for sponsoring institutions to advertise the ideas, products, and services. The organization can organize exhibitions, events, and trade fairs to advertise the services or products as trade events are still the best way to seek the attention of the targeted audience.
Broadcast Advertising
In it, the radio broadcast is the best way to get attention as a large number of population is regularly listening to the radio, and it is a cheap method because of less cost. It also has an advantage over other methods of advertising because it uses the human voice.
Advertising’s impact on the brand equity
Advertising can effortlessly influence the brand equity in many styles. It plays an essential role in creating awareness of the brand, and it also increases the chance that the company is in consumers’ mind. No doubt that it can also contribute to the brand associations and perceived quality as heavy advertising helps to improve the quality of the products. It can also make positive evaluations and attitudes of the brand that are readily accessible in consumers’ memory.