Brand Equity

Brand equity is the value built-up in a brand. The value of a company’s brand equity can be calculated by comparing the expected future revenue from the branded product with the expected future revenue from an equivalent non-branded product.

Composition of brand equity
An investment in brand equity is commonly claimed to work through the creation of brand knowledge. This knowledge in turn consists of two aspects of a brand: brand image and brand awareness. Brand image, in this context, consists of the mental associations consumers make with the brand. Brand awareness is composed of the strength of the brand in consumers minds, for example their ability to recall the brand. The combination of the two is sometimes referred to as the customer franchise. Firms may seek to influence brand equity, but it is the consumer who determines brand equity and its value.

All Objective Marketing campaigns are designed to raise brand awareness, and by doing so, increase brand equity.

          We hope you found this information useful. We would like to remind you that this subject is best served, and more effective as part of a complete marketing plan or strategy, rather than in isolation. For further expert advice please contact us to discuss your requirements or post a question in our blog.

Be Seen, Be Found, Be Accessible, Be Successful!