Brand Equity - Knowledge Pills
Brand Equity: Objective
This pill aims to build a clear and practical understanding of Equity as a System by starting from its vital component. We look at Awareness and its sub-dimensions (e.g., Top of Mind, Unaided, Aided, and Recall) before moving to Loyalty, Differentiation, and - finally - Esteem. We finally pause on Dos and Donts and provide a framework to optimize Equity in the long run. Being proactive in managing Equity is a necessary condition to build salient brands.
Pill Structure
- Definition and Examples
- Components: Awareness (TOM, Unaided, AIded, Recall), Differentiation, Loyalty, Esteem
- The Long Term Game and how to drive Equity
Brand Equity Why now?
A key benefit of building brand equity is its benefits on returns on investments. Organizations that make better equity often earn more money than competitors while spending less -n production, advertising, or elsewhere. For example, brand equity is a prerequisite to charging premium pricing. When consumers believe in the values put forth by a brand and the quality of its products, they will pay a premium for their emotional bond. Additionally, stronger equity franchises have an ongoing trust relationship with their customers and consumers. While trust needs to be nurtured - because it otherwise erodes in time - stronger brands are more likely to successfully introduce new products and services because of their awareness and trust.
Managing Brand Equity is one of the most challenging aspects of a marketing job. Brand Equity is a complex notion with many parts. In this pill, we consider Equity one component at a time, providing definitions and examples of making the most of each module. Conveniently on-demand. Knowledge pills because you need to know!