Brand value – everyone wants it, however, only few are able to achieve it. The subject of “brand value” holds a significant position amongst businesses, marketers, executives, entrepreneurs, and startups. Let’s discuss what makes a brand unique, and how it is evaluated.
Well, everyone knows the most powerful brands just by glancing their logos: Mercedes-Benz, Disney, Apple, Facebook, McDonald’s and Coca Cola are just a few. A brand can be any name, symbol, word, sentence, or logo that is used to distinguish the product from other similar products that are available in the market.
Brand makes your business unique. It sets the company apart and has the ability to position the business on the top in their specific industry. Sometimes, a brand is the company’s most valuable assets. In fact, many companies are often referred to by the name used in their brand – and they become one and the same. A strong brand identity drives customer loyalty, for the simple fact that once a customer uses your services and has a positive experience, your brand will bring them back.
However, there is more to it than just a nifty logo and a catchy brand name, though- everything you do within your business adds to your brand equity – the choices you make in product design, the quality of service that customers receive, the handling of customer complaints and any other services that your company offers – all of these things can add to credence to your brand equity.
Well, brand equity can be best defined as the phrase that is used inside the industry of marketing that defines the significance of having a well-established and recognized brand name, based on the concept that the owner of the brand is capable of generating more profits from products registered under that brand name over those products of a not so popular name. This justification is based on the perspective of many customers that a product which has a well-known name is much better compared to those products from a less popular brand name.
Simply put, “brand equity” is the construct which is specifically designed to replicate the actual value which the brand name is holding for products and services which it accompanies. Measuring brand equity has been considered important mainly for the reason that brands are regarded to be powerful influencers of crucial business results like market share and sales.
“Branded products invariably command a higher price than so-called ‘store brands’ or ‘generic’ – even when the product itself is a commodity such as sugar. In these cases, the higher price is due almost entirely to the power of the brand.”
- Be perceived variably and then produce varied interpretations of the product performance
- Enjoy better loyalty as well as be less prone to competitive advertising actions
- Command bigger margins and gain more unyielding responses to cost hikes and flexible responses to price drops
- Obtain better support and trade cooperation
- Boost the effectiveness of marketing communication
- Backing brand extensions
- Produce licensing opportunities
Just like other constructs, brand value has been defined and gauged in different ways. It’s sometimes understood from the viewpoint of perceptible financial assets of a company. On the other hand, from the marketing research outlook, it is usually viewed conceptually, as the framework to understand the effectiveness of emotional and intellectual associations that customers do have with branded services and products.
Contrary to outright dollar valuations, which underscore the direct financial perspective, the marketing researchers are looking to gauge and then understand the brand value for strategic planning and positioning.
Brand equity has been defined and measured in numerous ways. However, the measurement process is not as simple as counting the number of individuals who recognize a certain brand name or symbol. It can also not be assumed by the fact that if the brand is popular, it holds strong brand equity. In fact, the most powerful brands can effortlessly be weakened by any wrong steps taken by the company or faulty product.
“Although the details of various approaches to conceptualize brand value differ, they tend to share a general core: All definitions usually either explicitly or implicitly depend on brad knowledge structures within the minds of customers both organizations and individuals as the foundation or source of brand value.”
Researchers explain and gauge brand equity when it comes to knowledge that consumers have about a specific brand. Different published brand value models and measurements were available up to date. Remarkably, measuring brand value might be just a single piece of a more complete brand research program. Also, a brand research program of an organization might be just a single facet of a bigger research & insights program.
- Brand Awareness (strength of brand in consumer’s memory)
- Brand Image (consumer perceptions and preferences for the brand)
– Brand Performance – characteristics and features, reliability, serviceability and durability, effectiveness, empathy and efficiency, style and design, price.
– Brand Imagery – user profile, purchase circumstances, usage situations, values and personality, history and heritage.