Brand equity for a business is the effect on revenue beyond the product.
It is based on name, reputation, and image. Strong brand equity can help a company to:
- Attract new customers
- Increase customer loyalty
- Get a higher price
- Expanding into new markets
- Reducing marketing costs
How does brand management benefit companies?
Brand management is the process of creating and maintaining strong brand equity.
It involves developing a clear brand identity, positioning the brand in the marketplace and communicating the brand’s value to customers.
Brand management can benefit companies in a number of ways, including:
- Increased sales: A strong brand can help a company attract new customers and increase sales.
- Increased profits: A strong brand can help a company obtain a premium price for its products or services.
- Cost reduction: A strong brand can help a company reduce marketing costs, as customers are more likely to buy from a well-known and trusted brand.
- Increased market share: A strong brand can help a company increase its market share.
- Improved employee morale: Employees are more likely to feel proud to work for a company with a strong brand.
Five real values of brand equity in global companies
In today’s global marketplace, brand equity is more important than ever. A strong brand can help a company to:
- To attract new customers. In a world where there are more choices than ever, consumers are more likely to choose a brand they are familiar with and trust. A strong brand can help a company stand out from the competition and attract new customers.
- Increase customer loyalty. A strong brand can help a company build customer loyalty. Loyal customers are more likely to buy products and services from a company again, even if lower-priced alternatives are available.
- Get a higher price. A strong brand can help a company command a premium price for its products and services. Consumers are often willing to pay more for products and services from brands they trust and value.
- Expand to new markets. A strong brand can help a company expand into new markets. When a company enters a new market, it is often at a disadvantage against established brands. However, a strong brand can help a company overcome this disadvantage and gain market share.
- Reduce marketing costs. A strong brand can help a company reduce marketing costs. When a company has a strong brand, it is often easier to reach new customers and generate sales. This is because consumers are already familiar with and trust the brand.
Conclusion
Brand equity is a valuable asset for any company.
It can help a company attract new customers, increase sales, reduce costs and expand into new markets.
