MODULE 8

• Brand equity refers to the value and strength of a brand, as perceived by consumers.
• Brand equity is typically attained by generating awareness through campaigns that speak to target-consumer values, delivering on promises and qualifications when consumers use the product, and loyalty and retention efforts.
• 2 Fundamental Principles of Brand Equity

  1. Brand Awareness
  2. Brand Experience
• BRAND AWARENESS - This refers to the level of recognition and familiarity that consumers have with a brand.
• BRAND EXPERIENCE – it is the overall interactions and impressions that consumers have with a brand throughout their journey, encompassing both product/service interactions and emotional connections.
• 10 Importance of Brand Equity

  1. Enhanced ROI
  2. Premium Pricing Ability
  3. Builds Trust
  4. Boosts New Products
  5. Cost Efficiency
  6. Competitive Advantage
  7. Customer Loyalty
  8. Resilience to Negative Events
  9. Employee Morale and Pride
  10. Global Growth
• Enhanced ROI: Positive brand equity helps companies earn more

  and spend less, beating competitors.
• Premium Pricing Ability: Strong brands can charge more because

  people are willing to pay for trusted quality and values.
• Builds Trust: Positive brand equity creates trust, keeping customers

  loyal for the long term.
• Boosts New Products: Launching new items under a trusted brand

  helps them succeed faster.
• Cost Efficiency: Strong brand equity cuts costs by relying on

  existing trust, reducing the need for extra advertising.
• Competitive Advantage: A positive brand image makes a company

  stand out, keeping customers loyal.
• Customer Loyalty: Positive brand equity leads to loyal customers

  who come back and recommend.
• Resilience to Negative Events: Brands with strong equity handle

  problems better due to the trust they've built.
• Employee Morale and Pride: A positive brand boosts employee

  morale and commitment.
• Global Growth: Trusted brands find it easier to grow globally by

  entering new markets more easily.
• Understand Your Why - Know why your brand exists, focus on your purpose.
• Test Your Messaging - Test and improve your messages based on consumer reactions, addressing their problems using data.
• Drive Awareness - Emphasize values and emotions over quick sales, running longer campaigns for lasting brand reputation.
• Maintain Consistency - Stay consistent in how your brand looks, matching its personality in all advertising.
• Customer Experience - Prioritize long-term customer relationships, learn from feedback to enhance overall experience.
• Utilize Social Media - Connect with consumers on social media, like Nike on Twitter, for real-time insights and brand improvement.
• How a brand's value grows over time?

  1. Awareness
  2. Recognition
  3. Trial
  4. Preference
  5. Loyalty
• 4 Elements of Brand Equity

  1. Brand Awareness
  2. Brand Attributes
  3. Perceived Quality
  4. Brand Loyalty
• Brand Loyalty: It comes from past and present brand experiences, awareness, and attributes. Strengthening these elements increases profits and influence over customers.
• Perceived Quality: Boosting perceived value improves the customer experience. Customers judge product quality based on their overall brand experience.
• Brand Attributes: How have customers experienced your brand? This includes product performance, customer service, and loyalty programs.
• Brand Awareness: Can people easily recognize your brand? Keep messages and images consistent for easy identification, and think about the values associated with your brand.
• 6 Ways on How to Create Brand Equity

  1. Understand your Why
  2. Test your Messaging
  3. Drive Awareness
  4. Maintain Consistency
  5. Customer Experience
  6. Utilize Social Media