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Saturday, July 24, 2010
Which Mass Media Forms are Most Appropriate as a Part of your Marketing Strategy?
Brand Equity Significance
Ever wonder why some of your friends are brand conscious? Why a brother or sister usually buys one brand of jeans or blouses? Why does mother recognize only one brand of toothpaste and why do you see that same old appliance name all over the kitchen? There is definitely something behind the mindset of people that sellers are keen on---brand equity. What's that?!
Brand equity as stated in http://en.wikipedia.org/wiki/Brand_equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name. Brand equity then, is the added value endowed to products and services, is reflected in how customers think, feel and act with respect to the brand. Strong brand equity influences buying decision and shapes the ownership experience. It creates trust and an emotional attachment to the product or company. This attachment causes the market to make decisions based, or in part upon emotion towards a brand and not just for logical reasons. It helps make purchasing decisions easier particularly in a commodity market where features and benefits are virtually identical. It makes customers create a set of expectations about a product without even knowing the specifics of its features.
Brand equity is also important to companies because it facilitates a more predictable income stream. It increases cash flow by increasing market share, reducing promotional costs and allowing premium pricing. It can command a premium price and maximize the number of units that can be sold at that premium.
Moreover, brand equity builds a lasting impression, which is name recognition for the company and its products. It communicates a strong, consistent message about the value of a company and helps it sell value and intangibles that surround its products. It fences off competition and protects market share while building mind share where customers think of the company first when thinking of the product category where it belongs. As an asset, it can be sold or leased. Therefore, a brand is nearly worthless unless it enjoys some equity in the market place. Without brand equity, companies simply have a commodity product.
This is why meticulous efforts are focused alone on creating a brand name together with designing its logo color, figure and print. Businesses even employ the services of advertising agencies to make the most of their market branding and positioning. Other firms provide warranty and customer service centres in order to improve customer experience in the hope to avoid or even lessen post purchase behaviour and look forward to their purchase again in the future.