brand equity, what does that really mean?
TRANSCRIPT
Brand Equity – Branding – What does it really
mean?
In our past blogs we’ve written about branding and building up brand equity
in your business but, what does that mean exactly?
Breaking it down to the simplest aspect, brand equity really just comes down to
trust. Trust that your product or service is consistent, trust that it is good, trust
that it fulfills the promised requirement and most importantly trust that this product or service will
perform the same again the next time you require it. Companies spend billions of dollars each year
to meet these “truths.”
It may also take a great amount of time to slowly build this equity within your company. It takes time
because people not only have to try and use your product, company or service, they have to like it
enough to use it again.
The tricky thing about brand equity is that it’s not just a one way street and can work against you if
you do not fulfill the “truths.” BP is learned that the hard way with the Gulf oil spill, people are
assigning negative equity to the company and its products.
One thing we like to do here on our blog is to bring you articles and opinions from other people so
that you can hear another voice on the subject we’re bringing you. With that said, the below article
is by a Brand Develop Specialist and he describes Brand Equity perfectly, more eloquently them we
are, so please enjoy the article below.
Names for New Video Games:
With All the Talk About Building Brand Equity, What Does it Really Mean?
By Darren R Gunning
Answer: Equity is the ‘value’ assigned to your actual brand by what consumers really think and feel
about it, and therefore the trust and belief that they carry for it.
Brand equity is an integral part of customer (product or service) trialing, loyalty and retention.
A consumer/customer may often choose another product or service over their preferred brand as
part of their ongoing validation process for that brand. This can often be driven by price or a
promotional offer etc.
Brand equity at this time is the cornerstone for bringing them back to their hero (or preferred) brand
after the initial saving or offer experience is over from using the competitors brand. Through Brand
Equity we hope to achieve this ‘coming home or back to their hero brand’ by creating a conflict in the
psyche of the consumer that the newly purchased or trialed brand ‘X’ product, does not offer the
same belief of quality, trust and value to the consumer or customer as their preferred ‘hero’ brand,
hence they will purchase or visit us again, even if intermittently.
This loyalty is created through brand equity and brand building.
Current online/web trends (and for good reason!) are moving towards more User Generated Content
as part of this equity building allowing consumers to create, post and comment about the positive
experiences and opinions on a company, product or service as opposed to just what the
companies/brand are saying themselves about them on their corporate websites.
This transparency between the consumer and the brand is infinitely more powerful as a persuasion
tool then simply spoon feeding them corporate and advertising messages. Having said that, well
crafted and placed Advertising and Communications messages are still a very relevant part of the
overall mix. it’s a matter of balance through solid Channel Planning and Insight.
So what delivery channels should we use then to help build/increase Brand Equity?
The answer used to be “television”, you have to be on television! Technology has since brought us
agency accountability and the metrics and opportunity to look deep into our markets psyche, the
creation of the next generation of the database, the ‘true’ database, not just a bunch of population
based anecdotal data.
Now, true and solid Channel planning comes from stepping back, assuming nothing, and using
whatever mix of channels can deliver our message to our market, while also allowing for users to
comment and herald our brand for us in the global web space. Sometimes our final plan will not
included traditional delivery channels such as television, radio, press or print. Though for most
brands they are and will remain for sometime to come, an important part of the overall mix. But
without solid and unbiased planning you don’t really know, do you?
Article Source: http://EzineArticles.com/?expert=Darren_R_Gunning
I hope this blog and the following article answers any questions you may have about Brand Equity
but if it doesn’t please let just shot us an email or post a comment and we’d be more than happy to
answer it.
Update: After spending years of money and resources building your brand identity don’t ruin it by
over protecting it or tarnish the equity. Brand equity could easily be tarnished and it takes more
resources and time to build it back up again.
Once the public has you branded as being not of good quality, rude or whatever it is you’ve got to
struggle to get it back.