There isn’t a company on earth that doesn’t have it, but that doesn’t mean that it is distributed fairly. Brand equity is a term that describes the value of a brand. This value is based on the consumers ’ perception of and recognition of the brand. When customers think about a company, it has positive brand equity. When a brand consistently fails and depresses to the point where people suggest that others ignore it, it has negative brand equity.
What is Negative Brand Equity?
This is a sense of distrust that consumers feel when they hear about or encounter your brand. This can be a result of a number of things, but namely bad press. It doesn’t matter if the story told is true or false, all that matters is how it is received. Nowadays, a number of customers equate companies with their brand images. In the case that the identity of the brand declines, consumers will not choose to purchase the goods. Negative Brand Equity has the ability to hurt the brand’s profitability in the long run.
What is Positive Brand Equity?
Unlike its counterpart, this type of brand equity, has the ability to improve profitability while gaining exposure. Positive Brand Equity can be described as consumers having a good perception of a brand while comfortably recommending it.
How To Build Positive Brand Equity
This is the idea that the more people become conscious of the products, the more inclined they are to become future buyers. Generating market recognition may be difficult for start-up companies. But there are other ways they can pursue to place products in front of customers.
Search Engine Optimization, and social network marketing are all common strategies utilized by marketers to connect with their consumers. Understanding target markets and tailoring marketing material to their preferences or behaviors will render more profitability.
When branding and product development is not clear, consumers are less likely to recognize or support a brand. This is why brand recogntion is essential to business development.
Brand compliance is the introduction and preservation of the distinctive image of a brand in the marketplace. Via standardized branding, expression, and style, businesses can create global brand awareness.
In order to maintain brand compliance, franchises and multi-location companies have embraced distributed marketing software to provide a centralized hub for marketing and design assets. Marketers and designers from a number of locations will easily create on-brand material from accepted templates.
Brand compliance contributes positive value to brand equity by developing seamless experiences for customers around the world.
Ultimately, client loyalty is a core component of the brand equity that businesses should strive for. Customers who choose to purchase from or interact favorably with your company will become important sources for profit. These consumers can, post, talk about, and promote your brand to others, and spread positive feelings about your brand.
To focus on client loyalty, businesses also set up rewards schemes to improve client interaction and reward their best consumers.
The reputation of a company is important.
If the company has good market value, you can charge more for your goods. Thus, improving it’s profitability. Too often business neglect their brand’s image and focus solely on the products. Treat your image with love!