What is Brand Equity and how to use it? Brand equity sounds harder to understand than it is. Our aim in this post is to explain, in simple words, all about this modern strategy. Thus, you will get all the information you need for your company or brand.
Before we begin, we want to mention that you should read this article in full. The reason being that this strategy is behind the success and triumph of the major brands in the market. So, if you want your business to succeed, you can’t miss this.
First, have in mind that brand equity and branding aren’t a waste of time. We assure you they are very useful and vital. In short, they are the ones that will grant you a good position in the market, no matter the amount of competition.
Besides, you will easily see the positive results of this strategy in your sales, of that, we are sure. Thus, take the time to focus on these marketing strategies for your business. Remember, brand equity is the key to success. Let’s get to know it!
What is brand equity?
Brand equity refers to the value of the brand. But it focuses on how the public sees it. Thus, it doesn’t refer to its monetary value.
So, what this means is that this is the bottom line. Meaning that this is the added value you give your product or service. This, to make it stand out from the competition to then conquer the market.
In the same sense, this also aims to impact and create a relationship with the consumer. For this, this strategy makes the consumer react to the brand. As a result, they build their own perceptions of the brand. This, in turn, creates opinions, emotions, and experiences within the target audience. Thus, making them relate, build preferences, and closeness with the brand.
What is important in brand equity?
The public sees all tangible and intangible traits that have to do with your brand’s product.
These elements allow your product to become a potential sale. In the same way, it can also become a favorite within your audience.
As a result, you will be able to ask for a higher price for it.
So, by applying good brand equity your service or product will stand out.
Thus, taking the lead in such a competitive market.
On the other hand, these traits also influence consumer’s choices and purchases. This, in turn, affects the profitability of a business.
In simple words, we can say that if the brand equity is positive, said perceived value gets better economic results and enhances the business.
In contrast, brands that don’t pay attention to this value are more likely to fail.
Thus, destroying perceived value and economic equity. That’s why brand equity is the key to success.
How to create brand equity
All companies have to apply brand equity for their products or services.
In fact, organizations should also do this.
For this, the creative efforts and ideas of the marketing must stand out.
They have to create strategies so that the brand gains space in the market.
Thus, achieving good brand equity.
That’s why you need to find out if your company needs the help of specialists.
If so, they will carry out strategies or actions to get the best results possible.
In this sense, the importance of working hand in hand with marketing agencies is obvious.
The value of a brand is an intangible process.
However, you can measure and study it through the opinions of the public.
So, as you can see, carrying out actions so that your brand or company can become popular will, without a doubt, boost your sales.
As a result, said added value will also increase your economic income.
On the other hand, by having recognition, good opinions, and quality, your brand will be a favorite within the market.
What elements make up brand equity?
Once the concept is clear, we will explain the elements of this strategy. poThis way you will know what you must take into account when launching your product on the market. So, to start, you need to know that 6 elements make up brand equity.
- Brand awareness:
- The brand must reach the minds of consumers so they always remember you. For this, you must use those elements that identify your brand. These are, of course, your logo, presence, your ways of attractive and timely communication, among others. So, this is a positive and relevant indicator to have in mind when launching your brand. Not only that, but it also allows you to build up a level of recognition and familiarity from the public. Thus, achieving importance and the skill to influence them.
- Quality: The overall quality of your brand is really important. This is an aspect that you can’t ignore. As a result, you should never promise something that you can’t give. If there isn’t quality in what you offer, it will be very hard for you to create a client-company relationship.
- Perceived benefits: A consumer will always choose the product that offers the best benefits. As a result, you must offer these to stand out over the competition. This way you will be able to set prices higher than the market.
- Profile or perceived association: The image and personality of a brand also play an important role. Having a good image allows you to attract and connect with your clients. Not only that but with it, you can also get some feelings and emotions out of them.
- Loyalty: This factor is very important. You must always maintain the loyalty that your clients have with your brand. For this, always keep your promises over time through satisfying and meaningful experiences. As a result, you will reduce the risk of them switching to the competition. This way, you will also avoid damaging your reputation.
- Other factors: In brand equity, it is important to take care of everything from the largest to the smallest. You must take all competitive factors into account. Social media, licenses, costs, links…
Brand equity in digital marketing
As we have mentioned, brand equity is the key to success. Besides, the virtual world is filled with a lot of competition.
Today, not having a good digital marketing plan it’s a mistake that companies can’t afford.
So, when it comes to brand equity, a digital presence is vital.
However, you must take into account some important aspects that will enhance the image of your brand in the virtual world.
You must select the correct message
Any brand that wants to reach a high level of rebirth and appreciation must create a strong message so that the public can recognize and identify it.
Developing that message is key as it’s the first step to start a relationship with the audience and strengthen relationships.
This message must establish a correct line of communication, which must be relevant and interesting. On the other hand, a good content marketing plan is also a must. This way, you will attract the people you so want for your brand.
After taking the first step, creating the message and preparing a content plan, you must choose the channels.
With these channels, you will be able to build your brand’s online presence. Thus, become known to your potential clients.
However, most people think that a brand should be on all digital channels and this is a lie. Each brand, depending on its sector, target, product, or service, has to choose the channels that suit it best. This way, its strategies will be able to get the best results.
Besides all this, keep in mind that where your audience is, you must be. Nonetheless, a corporate blog or a website will always offer you a safe option to show yourself to the public in a reliable way.
Voice and tone of the conversation
Before creating your content and distribute it, you must first think about its tone or voice. Only after you do this will you be able to post it on your chosen channels.
By predetermining a voice and an appropriate tone, you will generate positive reactions.
As long as a company doesn’t take this factor into account, it will not achieve the proposed goals. It doesn’t matter whether they have good content production and distribution or not, it will simply not work. Thus, this element is very important because it will shape the way the company will speak to the audience.
In the same way, the brand needs to be consistent with its form of communication. You cannot change the way you deal with your clients.
Imagine that the brand treats its customers, consumers, or public with kindness one week and doesn’t have that kindness the next.
This would certainly complicate the evolution of the brand.
The brand needs to be consistent in the way it communicates so as not to end up disappointing the fans.
Another important point is the frequency with which you show your content to the public.
It’s not a good choice to only create content between long periods. Publishing material every two or six months isn’t enough to create a relationship with the customer and build brand loyalty.
You also need to maintain constancy and continuous production of content. This way, the public will remain interested and the brand will be close to people.
A strong and coherent message, creating content regularly on correctly chosen channels will make your brand position itself using all the power of digital marketing. Positioning itself as the favorite one.
How can we measure brand equity?
Although we have mentioned that brand equity is made up of a set of intangible elements. You must also know that even those intangible elements can be measured.
For this, you must identify the specific indicators (KPI) that should be applied in each case to each of the components of brand equity.
It’s also necessary to homogenize the indicators so that they are comparable and added. Besides this, also take into account and add online and offline metrics, or those necessary according to the nature of the brands to be measured.
Now, we are going to take into account four aspects that allow companies to measure brand equity through social media. Since every brand that wants to make a presence in the market must use social media. Thus, using the Internet to publicize the brand can be one of the best ways.
What should we measure in brand equity?
This is linked to the power that the brand has before the public.
How has this influenced them?
How popular has the company been? Here, you must measure the number of views, likes, comments, shares, and all kinds of interaction.
This factor will serve to know if the brand is being effectively received by the public in a good way. And it also helps you to know if it is generating leads.
As the name implies, this factor will help you determine whether the brand is being desired by the public.
To measure this, a positive reputation on social media is evaluated.
The aim of this is to see whether it’s being desirable from the mentions, comments, or opinions.
The analysis focuses on the opinions and reactions gotten from the public. In this factor, don’t focus on the number of interactions.
Here, you will determine the closeness of the public to the brand.
If the company is attractive to its target audience and if it encourages users to be shared with their own contacts.
At this point, the frequency with which the publications are shared, the level of interest of the users, how often a conversation is created whose central axis is the brand, etc. is analyzed.
Thus, here is where you find out if the engagement is optimal or not.
With this, it’s possible to measure what level of value the brand has and if it coincides with what it has shown to the public through digital channels so far. It is necessary to measure in this step if the values of the brand are being reflected in the general opinions of the users.
Advantages of measuring results
Thanks to this measurement system, there are advantages and benefits that you can obtain in real-time. Let’s mention a few.
- You can get the level of performance on digital channels. In terms of interaction, familiarization with the brand.
- Real and smart goals and objectives can be set thanks to the results of the metrics.
- It’s possible to know if the consumer is receiving the value of the brand correctly and if it is adapting to the company.
- The brand can get closer to customers by tracking brand equity.
- You can evaluate the reputation of the brand and improve mistakes or errors. This as long as the metrics are done periodically. Another great advantage is that you can see and analyze the competition.
As you can see, planning well and making good use of digital marketing is all your business needs.
Brand equity is the key to success, won’t regret making this good investment. We assure you that you will obtain satisfactory results, and transform your brand.
BluCactus, your ally in Digital marketing
BluCactus international marketing agency serves clients all over the world. Our specialty? The creation of web designs and SEO positioning in online searches. Besides, our group of experts is dedicated to helping businesses and brands succeed in one of the most competitive sectors in the market, the digital world.
BluCactus will accompany you every step that your brand takes. This goes from the creation of the branding of your business to the creation of content. Our focus is on supporting you with the development of your website or the administration of your accounts on social media.
This online marketing agency, based in Dallas, TX, seeks to strengthen your image as a brand and take it to the next level. Don’t wait any longer to have the help of the best specialists in digital marketing and contact us through our social media or website.
If you want to keep up with the world of digital marketing, we invite you to subscribe to our monthly newsletter.