As an owner of a website, this is an utmost important task to know the ins and outs of the brand equity of the brand you are going to establish for your site. This is a proven notion that a strong brand always encourages the customers to revisit the site and thereby generates more and more leads. The equity of a brand is not just the logos and colors on your site; it is the core to the branding message. Now let’s see what brand equity is and what its implications are:
The scholars of the marketing field define the term ‘brand equity’ as the combination of assets and liabilities associated with a specific brand that increases or decreases the value of an offer to a company and/or to that company’s customers. In other words, we can define the equity of a brand as either asset or liability to a company and to its customers. The sets of assets that constitute the brand equity of a brand are:
- Awareness of the brand name;
- Brand loyalty of the customers;
- Perceived quality of the brand;
- Brand Associations;
- Others, for example patents, channel relationships, etc.
The assets associated with a brand can add value either to the company itself or to its customers. The first three assets, i.e. awareness of the brand name, brand loyalty of the customers, and the perceived quality of the brand add value to customers; while the other two adds value to the company that possesses the brand. Also the value associated with the customers is also value to the company itself.
How does the equity of a brand add value to the company?
When the brand equity is the combination of assets, it facilitates the marketing program a company takes; directs the company in setting up the prices and margins; helps the company find out loyal customers. It also dominates the decision making process of brand extensions. The final value the company gets is the competitive advantage.
How does the equity of a brand add value to customers?
Brand equity provides the clue to process the information the customers search for while making their buying decision; helps the customers become confident in their purchase decisions; saves valuable time the customers spend in their buying decision making process. For example, when a buyer loyal to the brand ‘Head & Shoulders’ of P&G, thinks of buying a bottle of shampoo, the equity of the brand Head & Shoulders certainly drives his buying decision. The brand loyalty saves that specific customer’s time.
What are the ways of improving it?
Brand promise is one of the best ways of improving the brand equity. By establishing an emotional relationship with the customers by upholding their values, you can create a brand promise. It increases the customers’ trust and faith in your offers, which also attracts potential traffic to the site for which you are trying to improve the equity of the brand.
Societal marketing is another way of improving the equity of your intended brand. For example, customers are more and more concerned about the environment these days. You can clearly say your customers that you follow the environmental friendly method of producing your products. This will help your customers build trust in your products or services, which in turn will improve the brand equity.
Providing quality offer remains the best way of improving the brand equity. Never compromise with the quality of your offers. Convey the message to your customers that you always try to make them satisfied with the core benefits they are seeking for. If you can maintain the standard your customers expect, you surely can improve the equity of your brand.
Building the equity of a brand was never an easy task to do. One single mistake can ruin it. Move forward carefully while building the online brand equity.