We have previously talked about brand equity and why it is so important (it creates differentiation and distinctiveness), which help position a brand better in consumer's minds. But today we are going to focus on the marketplace benefits of branding based on a video about Kevin Lane Keller, which we strongly encourage you to watch! We will leave the link below!
Marketplace benefits of brand equity
Brand Equity creates value- most important intangible asset
Transforms product experience- if you know a brand, it is going to have a subconscious impact on your experience. If you give people the same product but tell them they are from different brands and ask them how they feel about it, they will answer differently depending on what brand they think it is, even if it is still the same product! That is why you want to leverage the power of your brand and create a positive image about it!
Raises the firm’s value and price because of what that brand equity is expected to bring you in the future in terms of benefits/ sales
Enjoy greater brand loyalty- if people are happy with your brand, they will trust you and build a relationship of loyalty with you, which will in turn make you less vulnerable to competitors
Have higher margins- more people are willing to pay more money for your product because of your brand, you can have greater push and pull with your suppliers (receive greater supplier and partner support)
Enjoy increased marketing communication effects- whatever you do will have a more positive response than it would have had if your brand was less known or welcomed by consumers.
Easier to promote growth – support new products or services as brand extensions, this will have higher brand awareness because of the power your brand already has.
Link to this amazing video by a marketing mastermind! YOU CAN'T MISS IT!
Interested in learning more about brands? Just let us know below in the comments!
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