Can you guess what is common between Apple, Coca Cola and Nike? Well, they all have positive and strong brand equities.
Brand Equity — What is it?
Brand equity is what defines and drives your market success. Simply stated, brand equity is the value of your brand determined by consumer brand interaction, experience and perception.
Types of Brand Equity — Positive vs. Negative
Positive brand equity is when the audience trusts and thinks highly of a brand. However, when the brand fails to make a good impression on the audience it leads to negative brand equity.
Why is it valuable?
Brand equity is extremely valuable for your business because it is your company’s success driver, and revenue generator. Based on positive brand equity:
- You can command higher price,
- Transfer that equity to line extensions and enjoy success and good profits in other business areas,
- Boost your company’s stock price,
- Retain a strong market position,
- Tap and conquer new markets and segments,
- Consistently build your loyal customer base, and
- Gain a sustainable edge over competition.
Besides this, if you have strong brand equity, customers will buy more of your products, choose your brand over competitors, recommend you to others and be more loyal towards your brand.
Keller’s Brand Equity Model — Brand Building is More Than Just Your Logo
In order to build positive brand equity, you need to build your brand. And that’s more than a logo. It’s true that an impactful and memorable logo design is crucial to brand building as it acts as your corporate identity and help differentiate you from the rest; but that’s one aspect of building your brand equity.
Brand equity develops and grows based on how your customers perceive your brand. Also known as Customer-Based Brand Equity (CBBE), Keller’s Brand Equity Model simplifies brand equity and how it’s built. It states that brand equity building is all about shaping the minds of your customers about your brand—how they think and feel about your brand. And to build positive perception, thoughts and opinions about your brand, you need to deliver the right and memorable experiences through brand engagement and interactions.
CBBE—The Four Step Model
- Who You Are?
The first step to building positive equity for your brand is to create brand awareness. Introduce your brand to your target audience with a unique logo and through powerful marketing and advertising campaign.
- What Are You?
Once your audience is aware of your brand existence, they would want to know your brand’s personality in terms of performance and imagery. Performance refers to primary characteristics like features while imagery is your brand persona. So, you need to make sure that the experiences you deliver reflect and are aligned with your brand personality.
- What About You?
Based on the experiences with your brand, your customers will continuously make judgments about it based on factors like quality, credibility, and superiority. So, if the brand experience evokes positive feelings with the brand, you’re on the path to positive brand equity.
- What about You and Me?
This is the brand resonance stage, when the customer would like to develop a strong relationship with the brand by interacting with your brand again through repeat purchase or service use. At this stage your customers feel a deep psychological connection or bond with your brand. And this is when you win their loyalty.
Reaching the brand resonance stage is the hardest and most desirable. If you want to reach this level too, then get in touch with us. Allow our team to craft a powerful and result-driven brand building strategy. We will help you position your brand for success and achieve positive brand equity.