All You Need to Know About Branding and Brand Equity

As the journalist Scott Goodson say, `Branding is fundamental. Branding is basic. Branding is essential. Building brands builds incredible value for companies and corporations’ (Goodson, 2012).

You want to create a unique impression on your customers and make them feel having a strong link with your company? Then, focus on branding as it is a key element to be successful for any type of company.

First, it is important to understand what brand stands for. According to the American Marketing Association, a brand represents any feature that help distinguish a company from others such as name, symbol, design or term (Kotler & Keller, 2015).

When companies achieve brand equity, it means that they succeed to have a brand that creates value among its customers with its uniqueness, consistency and quality. Examples of brands that have positive brand equity include Amazon, Apple, and WholeFoods. In this case, as the customer’s perceived value is higher, companies are able to increase the prices for their products or services (Esther, 2021).

According to Doctor Esther, brand equity can be divided into several elements which are brand awareness, brand image, brand association, brand identity, customer perception and brand loyalty. Below are more explanations about those concepts :

Brand Awareness : It is the extent to which customers are able to recognize a particular brand name. When your business has a strong brand awareness, that means that your customers are able to recall any aspect of your brand and develop a positive feeling towards it. As a result of knowing well your brand, customers are more likely to trust you, consume more of your product rather than the ones of your competitors and stay loyal. Research found that the click through and conversation rate can be increased by three times in online advertising when there is brand awareness (Zimmer, 2019). When reaching that point, businesses are also able to have a higher market share.

Brand Image : It can be defined by how the customers perceive the brand and what it stands for in their minds. It is the impression customers have based on how the business is presented. It can be small details such as the cleanliness of your environment, your employees outfits, your business cards, your website, etc that determine your brand image (Thimothy, 2016). That is why in order for your company to build a strong brand image, you should make sure to offer your customers a good experience and effective interactions. This will allow customers to create positive ideas about your business.

Brand Association : All the attributes that customers think about when they mention a specific brand in their minds. Companies should work on having their customers associating their brand names with positive attributes by making them remember of the unique qualities of their products. In this way, your customers are able to develop positive feelings about your brand. For example, when thinking about BMW, customers associate this brand with the following attributes : fun driving, sophistication and fun engineering (Management Study Guide, 2021).

Brand Identity : All the elements that make you recognize a specific brand over others shape the brand identity. Those elements such as logo, color, design is what make a brand distinguish from other brands. Those brands who have a strong identity are easily recognizable thanks to the elements mentioned previously that build their personality. For example, Oreo or Pepsi are recognized for the blue color in their packages (Esther, 2021).

Customer Perception : Customer perception refers to how people think about a specific brand. It is the opinion they have about a business based on their experience with that particular company. It can also be defined as the attitude that customers have towards a service or product. Customers can build a positive perception of a brand with attractive advertising in which efficient messages are delivered and when having social proofs (e.g respected people share positive feedback about a brand on social media) (Zamiatina, 2019).

Brand Loyalty : Making customers achieve brand loyalty is the ultimate goal that all marketers should have. It can be defined as the situation when customers make repeat purchases of a specific product. In this case, customers favor your brand over the ones of your competitors as they choose to do recurrent purchases in your company and stay loyal to your brand. Customers usually become loyal to a company when they develop a strong relationship with the brand. Loyal customers are the most profitable customers, and companies have to focus their efforts on increasing their customer’s lifetime value by working on building brand loyalty. This is why companies should work hard on developing the best relationships with their customers.

In sum, it is important for marketers to focus on all those elements that shape brand equity. In order to have a successful branding, companies should make sure to have a strong brand equity to attract customers and achieve their loyalty and retention.