Image via Google - http://eltarget.com/2017/02/02/cual-es-tu-lovemark/
What is Brand Equity?
To answer this question, we first need to understand what a "brand" actually is because many people confuse it with a product. According to the American Marketing Association:
“A Brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate it from the competition”
In simple terms, brand equity is the value of the brand, how consumers perceive it, if it is top of mind, and what associations they have with regards to it.
How do you create a Brand?
In order to create a brand you have to identify the brand elements that will differentiate it, so that your brand has a unique identity and is positioned the way you want it in consumer's minds. We are going to use Coco Pops as an example in order to explain what brand elements are.
Individual Brand : Coco Pops
Corporate Brand: Kellog's
Packaging: The Cereal Box
Character: Coco The Monkey
Slogan: "Just like a chocolate milkshake only crunchy"
These are just a few examples of brand elements; however, the important thing to remember is that in order to build brand equity, you have to use brand elements properly by creating a brand identity and a brand image to form a brand meaning which will differentiate your brand and motivate consumers to buy your products.
Why do consumers care about brands?
Brands help consumers identify who made the product, which gives them a feeling of trust as they know the source where the product came from.
When consumers identify brands and know them, they are more likely to buy their products if they do not know the other brands that sell the same product so it simplifies product decisions.
Lowers the search cost for products (externally and internally)
Helps set expectations (about the product's attributes, benefits, quality, duration, etc.)
Reduces the "risk" in purchase decisions
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Why do companies care about brands?
Makes product handling and tracing easier.
Simplifies accounting records and it helps organize the inventory.
Powerful way to ensure competitive advantage as it creates barriers of entry for new competitors.
Helps companies predict their demand and gain customer loyalty
Gives the firm legal protection (for unique aspects of the product)
Can anything be "branded"?
Yes! If you guys can think about anything that can't be please leave a comment below! But if you think about it, everything can be branded as the examples below show: -Physical Goods / products : Adidas -Services: American Airlines -Retailers: Woolworths -Sports, art, and entertainment: Champions League -Geographic Locations: Spring Break in Cancun -Online Products and Services: Instagram, Facebook -Ideas and Causes: WWF -Organizations: UNICEF -People : YES even people can be branded (influencers, Kardashians, etc.)
Images via Google - https://www.glossophilia.org/?p=1555
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