Brand Equity: Why it Matters and How to Build It
When building your brand, you might hear people talking about equity. What is it? In many cases, consumers choose a product based on their brand knowledge. While there are similar products on the market, consumers stick with what they know and trust. Brand equity can play a significant role in your marketing strategy and your company’s future. With bigger brand equity, you can convince consumers to subscribe to your website, buy your product, or use your services. Let’s take an in-depth look at why brand equity matters and how you can build it.
What Is Brand Equity?
Before you can build brand equity, you need a little background on it. Brand equity is the perceived value of the product or company based on its reputation with consumers. Your reputation is just as valuable as revenue.
Think about Lucky Charms cereal. There are similar brands in the marketplace, but consumers buy this cereal over others. Lucky Charms has captured a significant portion of the market share in the breakfast cereal niche. For that reason, Lucky Charms can price their products higher and still expect consumers to buy their cereal.
Why does this happen? Lucky Charms has brand equity in the market. With its favorable reputation, consumers are more likely to purchase this product because there is a perceived value over the competition. Brand-name products have more equity than other choices.
Can you build your brand equity? Absolutely. With hard work and effective marketing, you can create a brand that is more popular than the competition. There are many facets to brand equity, from recognition to consumer perception.
One of the most important aspects is to make your brand as visible as possible. You could accomplish this by yourself but think about getting expert advice in the industry. Consider hiring one of the creative companies in Philadelphia to help guide your branding and marketing strategies.
Brand Equity Components
When you break down these brand equity components, you can effectively build your business. Brand equity can be complicated, and you need to have all the right pieces in place to get the best benefits. Some of the most critical components include:
- Brand awareness and recognition
- Customer experience, preference, and retention
- Perceived quality
The Importance of Brand Equity
Whether you are a Fortune 500 company or a locally owned business, brand equity is important. Every business needs to think about it. Consumers will make their decision based on brand equity. They want to purchase services and products from companies that they trust. Along with that, consumers trust companies with products that provide value and are recognizable to them.
By ignoring brand equity, you lose your market share to competitors. Brand equity can add more revenue to your bottom line. You can use brand equity to raise your prices. When consumers trust your brand, they are more likely to pay a higher price to use your products.
Brand equity can help to expand your service or product line. You might want to add a few more products to your store. With brand equity, you can do that. You have a built-in customer base that will be willing to try out those new products or services. Brand equity helps you make your business stronger by diversifying your revenue streams.
Building Brand Equity
By building your brand equity, you establish your brand and reputation with the consumer. When customers recognize your brand, they will choose your products over the competition. A Philadelphia branding and design agency can help you build equity. You will need to know a few strategies to accomplish this task.
First, you will want to build brand awareness. When customers see your brand, they will automatically identify your company with certain products and services. You want to use the same image or logo for your branding. When a consumer sees your logo, they will think of your brand. It is essential to keep your brand at the forefront of the market. You can reach a bigger audience by using social media and other types of marketing to reach those potential customers.
Next, think about the meaning of your brand and effectively communicate that with your audience. Your product or service should meet the needs of the customers in a social, psychological, and physical sense. If you have a high-quality product and your company gives back to the community, you are already ahead of the competition. People want to connect with a brand. Many companies have found that they can build more brand equity by supporting a local cause or providing outreach to communities.
When your customers associate their positive emotions with your brand, they are more likely to have a stronger connection to your company. Over time, they will become loyal clients. Consumers judge products and services based on their capability, credibility, quality, and superiority over the competition. For your brand, you want to generate positive feelings about your business. Once again, people will select a brand they trust. In addition to that, they want a brand that offers a higher level of quality than the competition.
Finally, you want to build loyalty with your customers. Those loyal customers have already formed a psychosocial bond with your brand. They are repeat buyers because they trust your business. Think about using them as brand ambassadors to sell your products on online forums, social media platforms, and physical events. With that, you can build on your brand equity in an invaluable way.
The Next Steps of Your Branding
With positive brand equity, you are held in higher regard in your targeted market. Consumers recognize your brand and understand what you can offer to them. For that reason, they are likely to pay more for your services and products over the competition.
We Can Help With Brand Equity
At Hyland Graphic Design & Advertising, we have the experience to build your brand equity. Trying to tackle this task on your own can be difficult. Allow us to find the best strategy for you. Make sure to schedule a consultation by calling (484) 879-6145.
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