What does Brand equity mean in marketing terminology?

Brand equity

Brand equity is an important concept for any marketing professional to understand. It is used to assess the value and strength of a brand, and accordingly, inform strategies that will help to improve the brand.

Put simply, brand equity is the intrinsic value that a brand has in the mind of its consumers. It goes far beyond a brand’s logo, tagline, or other elements of its visual identity. While these can all be factors, brand equity is also determined by consumer awareness and perception. It is how people view a brand, what they think of it, how committed they are to it, and whether or not they want to be associated with it – these are all aspects that measure a brand's equity.

It is important for companies to invest in the building of their brand equity. This is because the more positive consumer association and commitment to a brand, the more likely it is that those consumers will remain loyal, continue to make purchases, and defend the brand over a competitor.

Building brand equity starts with creating a strong and consistent image. Companies need to choose carefully how to present their brand identity, using visuals such as a logo, bold fonts, and vibrant colours that ensure they stand apart from their competitors and make an impact on the consumer. They must also strive to create a consistent brand identity across all media, including packaging, promotional material, and digital platforms, as this helps to firmly establish a recognisable brand in the minds of the consumer.

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The brand's messaging is also crucial for the building of brand equity. Companies should ensure that all messaging is unique, relevant and emotionally engaging to their target audience. Consistency is key here, so engaging content with a well-defined tone of voice should be featured across all of the brand’s messaging. The use of celebrities or other influencers can be beneficial for improving the level of brand equity.

Good customer service is another piece of the brand equity puzzle. By providing exemplary customer service, companies can can help to build trust among their customers and improve the perception of their brand overall. Excellent post-purchase experience is often a driver of brand loyalty and customers should be encouraged to give positive feedback and reviews which can be then incorporated into social media and other public channels.

Finally, companies should constantly monitor and evaluate the strength of their brand equity. There are a number of specialist tools and services which can help with this evaluation. Companies should remember to look at their competitors in order to get a full view of the landscape and be able to understand how they compare.

With a comprehensive understanding of brand equity and by investing time, effort and resources into building its value with their consumers, companies will be able to unlock further market opportunities and reap the rewards of a successful brand.