The value of having a famous brand name, which is based on the concept that the proprietor/owner of the company can earn more profit just from the fully recognized brand is called Brand Equity. Many big companies create brand equity for their products to make them easily recognizable, memorable, high-quality, and reliable. It is a consumer-based concept, which tells the attitude of consumers towards the brand position, favorable consequences of the brand use, and its attributes. Nowadays, different marketing techniques like digital marketing, promotional campaigns, and others are using in building an image.
Example: One of the best examples of the brand equity is the Apple. The quality of the products that Apple offers are way ahead of the other brands, and it has developed the loyal customer base, demand, higher pricing strategy, and everything to make the brand in top 3 most valuable brands in the world for almost a decade.
There are five components of the brand equity, which helps in measuring the most accurate value of the brand.
The components are:
• Brand Associations
• Brand Awareness
• Brand Loyalty
• Brand Assets
• Brand Elements
The things that have a connection with the brand are called brand associations. It depends on customers’ perception towards the brand, product quality, advertisements, price points, etc. Consumers add to the brand associations with every interaction they have with the company, and these have formed from what other people tell about the brand to the customers. It plays a vital role as it is negative as well as positive.
It means that the customers get familiar with the fact that the brand exists, and they can also recall the categories in which the brand is expert. To build the awareness, the owner should make the brand visible to the targeted audience through promotional campaigns or marketing strategies like advertising, word-of-mouth strategy, events, etc.
It is an essential component of the brand equity as it creates an attachment between the consumer and the brand. Some biggest companies like Samsung, Pizza Hut, and others have loyal fan-base, which helps them a lot throughout their business life. The highest level of loyalty makes the expenditure less in the market because customers show great interest in the products of the brand.
It includes patents, trademarks & channel relationships, and the combination of all the elements of the brand. The Brand assets are the most valuable things because they save and prevent the competitors from attacking the brand. It also prevents the erosion of loyal customer base and competitive advantages for the company/brand.
Most of the brands establish those elements that define the basic look of the company. Almost all the famous brands use the short slogans or jingles that can remember easily. The brand elements include logos, taglines, slogans, consistent image style, standard typographic treatments, and the corporate typefaces.
Brand Equity is the essential thing in the modern world to get a maximum profit in a business.