Brand Equity Building & Consulting
Most homeowners are familiar with home equity, but for small business owners the idea of brand equity can be puzzling and confusing. Just as your home equity represents the percentage of the house you “own” and its current market value, brand equity is the value of your brand compared to the value of the brands of your typical competitors. Working with Vertex Media, We monitor all your media channels to ensure there is no dilution.
Simply put, if your brand is easily recognizable and you maintain a positive reputation among your target audience, you have very strong brand equity.
Brand equity is made up of three main factors:
This is the image that your potential buyers have of you. This image is developed through knowledge and experience of your company’s advertising, services, and products. People form impressions of your company from the name of your brand, the look of your website, the appearance of your shop or office, and the quality of your services and products.
What you have to realize is that you, yourself, can’t really define your brand. Only your potential customers can truly do that, because they’re the ones who decide whether to avail of your products and services, or not.
You may say that your products are durable and easy to use. But if people think your products are hard to figure out and won’t last long, then that’s your actual brand image.
The value of your brand will therefore depend greatly on consumer perception – which will lead to either positive or negative effects.
If consumers are generally likely to buy a brand other than yours, then you certainly have a negative value. The same goes if people don’t recognize your brand, or if they immediately think of something negative when they hear your brand name.
However, if consumer perception of your brand is positive and strong, that will lead to positive effects. If consumers want to get something from your industry and they immediately think about getting your brand’s product, then you have positive brand equity.
With positive brand equity, you can enjoy quantifiable benefits such as higher sales or profits. You’ll have more success if your positive brand equity means that people are willing to pay more for your product than other generic products.
In addition, when you offer a new product or service with a similar ethos you won’t have to come up with a new brand identity for it. For example, if Toyota is launching a new car that’s affordable and reliable, it can still be part of the Toyota lineup because that’s the image that Toyota maintains for its brand. By having positive brand equity, Toyota can capitalize on its brand image to tout its new car.
But sometimes that “affordable and reliable” image can be a negative – like when Toyota wanted to enter the luxury vehicle sector. Toyota had to come up with an entirely new brand called Lexus to separate its luxury vehicle division from its regular lineup.
Brand equity is, in short, the value of your brand name. You create equity by boosting positive consumer perception, and you destroy or lose equity through negative consumer perception or by changing your brand identity.