{"id":170624,"date":"2024-06-02T13:25:26","date_gmt":"2024-06-02T07:55:26","guid":{"rendered":"https:\/\/www.digitalvidya.com\/blog\/?p=170624"},"modified":"2024-06-02T13:25:29","modified_gmt":"2024-06-02T07:55:29","slug":"brand-equity","status":"publish","type":"post","link":"https:\/\/www.digitalvidya.com\/blog\/brand-equity\/","title":{"rendered":"Brand Equity: Definition, Components, example, and Relation With Marketing"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"brand-equity-key-components-example-and-relation-with-marketing-internet\"><\/span>Brand Equity: Key Components, example, and Relation With Marketing, Internet\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Marketing and sales online or offline are more effective in the presence of a strong reputation for a business. Building a brand and establishing brand equity accelerates the growth of a company.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s learn and evaluate the meaning of brand equity, components, importance, examples, the relation of brand equity and marketing, and how to measure brand equity.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what-is-brand-equity\"><\/span><b>What is Brand Equity?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"What is Brand Equity?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/Wwu3Qvs31vk?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Brand equity is an intangible asset of a brand in the form of brand value. It reflects the holistic reputation of a brand with brand awareness, brand associations, perceived quality, brand loyalty, etc. A higher and positive brand equity helps a brand to maximize the pricing, profits, marketing, and sales ROI.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cBrand\u201d refers to a unique, distinct identification of a business associated with a product or service. The word \u201cEquity\u201d comes from the Latin word \u201caequus\u201d which means \u201ceven\u201d and \u201cfair\u201d. Hence, to build a unique identification and fair, optimized revenue, profit, and market share of a company, brand equity development is profitable.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Brand equity can be seen as a separate asset that is totally comprised of brand value. This value is the sum of the assets and liabilities that are generated as a result of the <a href=\"https:\/\/www.digitalvidya.com\/blog\/relationship-marketing\/\">relationship marketing<\/a> with the customers of the respective brand.<\/p>\n\n\n<div class=\"cta-form\"><div class=\"content\"><div class=\"left-block\"><div class=\"section-title\">Want to Know the Path to Become a <strong> Digital Marketing Expert?<\/strong><\/div><div class=\"desc\"><p>Download Detailed Brochure and Get Complimentary access to Live Online Demo Class with Industry Expert.<\/p>\n<\/div><div class=\"time\"> Date: August 1 (Sat) | 11 AM - 12 PM (IST)<\/div><\/div><div class=\"right-block\"><script>\nvar 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);\n<\/script>\n<\/div><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">David Aaker (Father of Modern Branding), an American organizational theorist, consultant and Professor Emeritus at the University of California, Berkeley&#8217;s Haas School of Business says-<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<figure class=\"wp-block-image alignright is-resized\"><img decoding=\"async\" src=\"https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/Aaker_6e479bec91a2aa622b4c63b68f15dc77.jpg\" alt=\"Image result for david aaker\" width=\"386\" height=\"471\" title=\"\"><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The most important assets of any business are intangible: its company name, brands, symbols and slogans, and their underlying associations, perceived quality, name awareness, customer base and proprietary resources such as patents, trademarks and channel relationships. These assets, which comprise brand equity, are a primary source of competitive advantage and future earnings.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">After knowing what is brand equity, let us now have a look upon the ways through which brand equity can be measured.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"brand-equity-components\"><\/span><b>Brand Equity Components<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized wp-image-170758\"><img decoding=\"async\" src=\"https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/b55-1024x535_6a6380a685bffae15cd17590b810f41e.jpg\" alt=\"Brand Equity Components with 4 key components\" class=\"wp-image-170758\" width=\"932\" height=\"487\" title=\"\"><figcaption class=\"wp-element-caption\">Brand equity components<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The brand equity model comprises 5 components. Let\u2019s have a close look at what each of these components is and how they contribute to brand equity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1-brand-awareness\"><\/span><b><\/b><b>1. Brand Awareness<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Brand awareness is the first step of the brand equity model towards brand building.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Brand awareness essentially means that customers know about the brand and are familiar with the product category of the brand. There are several levels of brand awareness.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(i) The lowest level of brand awareness is when the customers have to be reminded of the existence of the brand and the product category in which it competes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(ii) A level higher than the lowest level is the aided recall stage. Here, the customers can recognize the brand from a list of brands occupying the same category.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(iii) The next level is the \u2018unaided recall\u2019 stage. Here, the customer can come up with the name of the brand without any external help.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(iv) The highest level of brand awareness is the \u2018top of mind recall\u2019. In this stage, the first name that the customer recalls is the name of the brand upon mentioning the product category.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2-brand-associations\"><\/span><b>2. Brand Associations<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Brand associations as a part of brand equity refer to features, quality, colors, fonts, interactions with employees, the overall experience of products and services, celebrity enforcement, style of storytelling, and other parameters of brand reflection.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A strong, positive brand association means an exceptional, better before-after sales experience for a customer. <span style=\"color: var(--ast-global-color-2); font-size: revert; background-color: var(--ast-global-color-5);\">It is absolutely essential to have strong and positive brand associations. Brand associations are not just the result of the direct interaction of the customers with the brand. It can also result from what others say to the customers.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is absolutely essential to have strong and positive brand associations. Brand associations are not just the result of the direct interaction of the customers with the brand. It can also result from what others say to the customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, it is necessary that a company plans its interaction with every customer, media, government, and employee in an intelligent manner.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3-perceived-quality\"><\/span><b>3. Perceived Quality<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Even though perceived quality also falls under the category of brand association, it is given a distinct status because of its importance. Perceived Quality simply means the holistic experience of customers with a brand. It includes the thinking, opinions, feelings, and collective perceptions of customers about a brand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Quality is judged by customers based on certain parameters.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These parameters are those which are important to them. Further, these parameters of a brand are assessed by comparing the quality of offerings of the brand\u2019s competitor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Quality is important for both brands and customers. It is the criteria on which companies can decide what prices to keep.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Quality can also be used by a brand to position itself. Optimizing brand equity improves the quality of service and products. Usually, a brand that offers superior quality than others keeps premium prices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4-brand-loyalty\"><\/span><b>4. Brand Loyalty<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Brand loyalty is what every brand strives for, and that is why it is one of the most important components of the brand equity model.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Brand loyalty results in repetitive purchases by a customer over time and also results in less marketing expenses<b>. <\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among all the components of brand equity, brand loyalty is considered to be the most important one. This is because all the components in this list take place before a purchase is made. However, brand loyalty comes after the purchase and is the most reliable indicator of brand equity because feelings of loyalty are instilled only post-purchase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By instilling loyalty a brand can have more purchases from the same customer in the future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Brand loyalty is the core of business success for a company. It allows the company to survive and also introduces new products in its portfolio which can be targeted at the loyal customer base.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Brand loyalty gives an advantage to a company to have a stronger position with its channel partners. When there is a good demand for a company&#8217;s products the retailers just have to make it available to the customers rather than pushing sales.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5-some-other-brand-assets\"><\/span><b>5. Some other Brand assets<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The other brand assets are proprietary brand assets that the brand equity model of a company comprises.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These comprise of trademarks, patents, and channel partner relationships.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Proprietary brand assets contribute to brand equity because they prevent competitors from harming the business as well as enable a brand to maintain its loyal group of customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These assets protect the differentiating factors of a brand and enable the brand to maintain its brand image.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"importance-of-brand-equity-in-business-and-marketing\"><\/span>Importance of Brand Equity In Business and Marketing <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Brand equity is immensely important to increase a company\u2019s reputation, pricing, profit, marketing, sales, and ROI. Brand equity is the value of a brand with trust, value, and authority in the eyes of customers and investors. With increased reputation, marketing, sales, and profit margins can be maximized in the market.       <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Build Strong Brand Reputation: <\/strong>Brand equity is directly connected to the reputation of a company. Incremental brand equity builds brand reputation.&nbsp;<\/li>\n\n\n\n<li><strong>Maximize Marketing, Sales, Profit, and ROI:<\/strong> Higher brand equity increases the chances of conversions of marketing campaigns and sales calls. It maximizes the overall ROI of a business.&nbsp;<\/li>\n\n\n\n<li><strong>Enables premium pricing:<\/strong> A positive brand equity can help the company charge more for its product or services as compared to the actual market price.<\/li>\n\n\n\n<li><strong>Establish Assets:<\/strong> As discussed earlier, brand equity comprises intangible assets of the company (organization). These, similar to other assets, can be sold, leased, or licensed to others.<\/li>\n\n\n\n<li><strong>Increases market share:<\/strong> A well-defined and good brand equity increases customer loyalty and thus, results in customers opting for the brand over the others. This helps in increasing its market share.<\/li>\n\n\n\n<li><strong>Brand extensions:<\/strong> If a company has positive brand equity, it becomes easier for them to introduce new products or product lines into the market. For instance, Apple began with the Mac OS (Operating System). As the brand equity grew, it was easily able to convert its equity with iPhones.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"brand-equity-examples-to-understand-brand-equity-models\"><\/span><b>Brand Equity Examples to Understand Brand Equity Models<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Till now, all you learned about was what brand equity is and how it is measured. Now, let\u2019s jump into the power of brand equity and see it in action in the real world.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"apple-brand-equity-examples\"><\/span><b>Apple Brand Equity Examples<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image aligncenter wp-image-170759\"><img decoding=\"async\" src=\"https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/og-default-380x199_73380428d28ca8c0d278630f977f7996.jpg\" alt=\"Apple Brand Equity and Logo\" class=\"wp-image-170759\" title=\"\"><figcaption class=\"wp-element-caption\">Apple brand equity<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Apple is the best brand to fathom the power of brand equity. Apple is the leading tech giant that is well-known for its high-quality range of electronics such as iPhone, iPad, Macbook, etc. This brand has a strong influence on tech lovers and has an extremely loyal customer base.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Though this brand doesn&#8217;t offer many different features compared to other electronic brands, still it comes with a premium price tag. Some people even buy Apple&#8217;s products just to join the group of Apple users. This is the level of brand equity that every brand aspires to achieve.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"starbucks-brand-equity-examples\"><\/span><b>Starbucks Brand Equity Examples<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image aligncenter wp-image-170760\"><img decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/Starbucks-final-770x433-300x169.png\" alt=\"Starbucks Brand Equity Coffee marketing logo and brand culture\" class=\"wp-image-170760\" title=\"Startbucks logo and culture\" srcset=\"https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/Starbucks-final-770x433-300x169.png 300w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/Starbucks-final-770x433-150x84.png 150w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/Starbucks-final-770x433-600x337.png 600w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/Starbucks-final-770x433-220x124.png 220w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/Starbucks-final-770x433-595x335.png 595w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/Starbucks-final-770x433-480x270.png 480w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/Starbucks-final-770x433.png 770w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption class=\"wp-element-caption\">Starbucks brand equity<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A consumer case study was conducted on Starbucks customers. It was seen that customers chose Starbucks not just because of its good qualities but also because of its brand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Starbucks is popular across the globe for its specialty coffees and Arabica coffee beans. It has around 21000 stores around the world and is regarded as the 5<sup>th<\/sup> most desirable brand in the world. The brand has also built a good image of itself because of its social pledge.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"porsche-brand-equity-examples\"><\/span><b>Porsche Brand Equity Examples<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized wp-image-170761\"><img decoding=\"async\" src=\"https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/porsche-logo-300x135.jpg\" alt=\"Porsche car Brand Logo \" class=\"wp-image-170761\" width=\"371\" height=\"167\" title=\"Porsche Brand Logo\" srcset=\"https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/porsche-logo-300x135.jpg 300w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/porsche-logo-150x68.jpg 150w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/porsche-logo-600x270.jpg 600w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/porsche-logo-220x99.jpg 220w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/porsche-logo-595x268.jpg 595w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/porsche-logo-980x441.jpg 980w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/porsche-logo-480x216.jpg 480w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/porsche-logo.jpg 1000w\" sizes=\"(max-width: 371px) 100vw, 371px\" \/><figcaption class=\"wp-element-caption\">Porsche brand equity<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Porsche has strong brand equity in the automobile industry. This is a luxury brand that promises to offer not just a product but an experience. Many people aspire to own a Porsche not only for its high-quality nature but also for their desire to increase their social status.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Porsche ranks above other automobile brands such as BMW and Mercedes. It has secured the 3<sup>rd<\/sup> rank in the luxury car category.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"facebook\"><\/span><b>Facebook<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/neilpatel.com\/wp-content\/uploads\/2019\/06\/facebook.png\" alt=\"Facebook name and brand color\" width=\"580\" height=\"348\" title=\"Branded color of facebook\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Facebook is a prevalent social networking site. There are several instances of social networking sites which have come and gone. However, Facebook has managed to stay put and has been consistent. The platform and the company have successfully managed to build such a loyal set of customers that most of them do not use the other social networking sites available in the same market place.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"maggi\"><\/span><b>Maggi<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img decoding=\"async\" src=\"https:\/\/5.imimg.com\/data5\/WB\/PX\/MY-8033205\/maggi-noodles-500x500.jpg\" alt=\"Image result for maggi with branded packaging and tagline\" title=\"The Brand Maggi Packaging\"\/><figcaption class=\"wp-element-caption\"><em>A brand: &#8220;Maggi&#8221; and its packet with a brand tagline called &#8220;Your favorite masala taste&#8221;. The overall branding of the package reflects the essence of delicious taste in food such as Noodles.<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Although there was a ban on the product in India, it did not lose any customers and witnessed a huge demand as soon as it was re-launched into the market. This is a good example which shows how strong brand equity can be and how it can help a company cope with different market scenarios.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"brand-equity-model\"><\/span><b>Brand Equity Model<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To measure the power of the brand (brand equity) both Kelvin Lane Keller and David Aaker proposed different brand equity models.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">David Aaker\u2019s brand equity model is based on the 5 brand equity components namely Brand Loyalty, Brand Awareness, Perceived Quality, Brand Associations, and Proprietary Assets that have been discussed above.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, let\u2019s throw some light on the other famous brand equity model that has been proposed by Kelvin Lane Keller, professor of marketing at Dartmouth College.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keller&#8217;s model which is also known as Customer-Based Brand Equity (CBBE) model is about what the consumer has felt, heard, seen, and learned about a brand over the years.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The CBBE model is based on 4 questions that correspond to the different levels of the CBBE pyramid. These 4 questions are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Who are you?\/ Brand Identity<\/li>\n\n\n\n<li>What are you?\/ Brand Meaning<\/li>\n\n\n\n<li>What do I feel or think about you? \/ Brand Responses<\/li>\n\n\n\n<li>What about you and me? \/Brand Relationships<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1-brand-identity\"><\/span><b>1. Brand Identity<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To have a brand identity the brand has to not only come to the mind of the customer often but the brand should also be recalled by a customer at a particular time and place. This is called having a brand salience.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2-brand-meaning\"><\/span><b>2. Brand Meaning<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To have a meaningful brand, it is essential to come up with good brand imagery and characteristics. Both of these come from brand associations. Brand imagery meets the social and psychological needs, whereas brand function meets the service performance required by the customer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3-brand-responses\"><\/span><b>3. Brand Responses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Consumer response to a brand is important. Keller segregated the consumer response to brands into two categories consumer&#8217;s judgment and feelings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.digitalvidya.com\/blog\/consumer-behaviour\/\">Consumer&#8217;s behavior<\/a> &amp; judgments are personal opinions about the brand. These can be based on Quality, Credibility, Consideration, and Superiority.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The emotional reaction to the brand comprises the consumer&#8217;s feelings. Brand building can be done with 6 vital feelings. These are Warmth, Fun, Excitement, Social Approval, Security, and Self-respect.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4-brand-relationships\"><\/span><b>4. Brand Relationships<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Personal identification of the customer with the brand is called brand resonance.\u00a0 Brand resonance or psychological bonding which is very important for any brand has been divided into 4 types by Keller. In the context of brand building and brand equity establishment, <a href=\"https:\/\/www.digitalvidya.com\/blog\/consumer-behaviour\/\" target=\"_blank\" rel=\"noreferrer noopener\">learning consumer behavior<\/a> is profitable and evident.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Behavioral Loyalty:<\/strong> When the consumer repeatedly purchases the brand&#8217;s products.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Attitudinal Attachment:<\/strong> Buying a brand\u2019s products out of pleasure or it is the favorite one of the consumer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Sense of Community:<\/strong> The consumer feels a part of a community with other consumers who have bought a brand\u2019s product.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Active Engagement:<\/strong> When the consumer invests his time and energy into brand activities like chatting about the brand or into some brand events.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"brand-equity-and-marketing\"><\/span>Brand Equity And Marketing\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2024\/06\/Relation-Brand-Equity-and-Marketing-980x551.jpg\" alt=\"the connection between brand equity and marketing in the context of ROI, marketing and brand building\" class=\"wp-image-222849\" width=\"882\" height=\"496\" title=\"Connection of Brand Equity and Marketing\" srcset=\"https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2024\/06\/Relation-Brand-Equity-and-Marketing-980x551.jpg 980w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2024\/06\/Relation-Brand-Equity-and-Marketing-375x211.jpg 375w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2024\/06\/Relation-Brand-Equity-and-Marketing-150x84.jpg 150w, https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2024\/06\/Relation-Brand-Equity-and-Marketing.jpg 1200w\" sizes=\"(max-width: 882px) 100vw, 882px\" \/><figcaption class=\"wp-element-caption\"><em>The relation of brand equity and marketing. A positive brand equity improves the overall ROI of marketing.<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">As mentioned earlier, Brand equity is the summation of the entire brand value. It&#8217;s connected to the strength of brands in terms of company reputation, sales, ROI, and stock share values of the company. Brand equity enhances the effectiveness of marketing campaigns. Marketing and storytelling in its pure form is persuasion. Brand Equity establishes authority, trust, and reliability that influence consumers&#8217; decisions and actions persuasively. Similarly, high brand equity enhances the effectiveness of marketing as the brand is already known and well-established. Similarly, high-quality marketing campaigns can increase the reputation of a brand.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An example of Brand equity and improved ROI from marketing is- The marketing budget of Amazon in 2010 was approx 1000 million dollars. With time the reputation and popularity, or brand equity of Amazon has increased. Now, Amazon is investigating 4.4X more. Amazon has spent $44,370 million\/ approx 3 lakh 54 thousand 960 crore rupees in marketing in 2023 according to Statista.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"brand-equity-and-its-effect-on-internet-marketing\"><\/span>Brand Equity and Its Effect on Internet Marketing&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The core theory of Brand equity is connected with a brand&#8217;s overall value in the market. To enhance brand equity different <a href=\"https:\/\/www.digitalvidya.com\/blog\/types-of-online-marketing-channels\/\" target=\"_blank\" rel=\"noreferrer noopener\">types of internet marketing channels<\/a> are taking place. Such as social media marketing, email marketing, content marketing, and video marketing are useful mediums to educate, entertain, and build deeper relationships with consumers. Social media marketing such as X\/Twitter marketing, Instagram marketing, YouTube marketing, and LinkedIn marketing are useful tools for building a brand online.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Several mentionable online brands in 2024 are:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Amazon&nbsp;<\/li>\n\n\n\n<li>Meta<\/li>\n\n\n\n<li>Etsy&nbsp;<\/li>\n\n\n\n<li>Flipkart&nbsp;<\/li>\n\n\n\n<li>Alibaba Group&nbsp;<\/li>\n\n\n\n<li>Nykaa<\/li>\n\n\n\n<li>eBay&nbsp;<\/li>\n\n\n\n<li>IndiaMART&nbsp;<\/li>\n\n\n\n<li>Snapdeal<\/li>\n\n\n\n<li>Target&nbsp;<\/li>\n<\/ul>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"measuring-brand-equity\"><\/span><b>Measuring Brand Equity<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image aligncenter wp-image-170757\"><img decoding=\"async\" src=\"https:\/\/www.digitalvidya.com\/blog\/wp-content\/uploads\/2019\/11\/brand-equity-1_725eeb8f13f99c21e9085de6e1329b93.png\" alt=\"Metrics of Brand Equity to measure knowledge, preference and financial consideration of brand.\" class=\"wp-image-170757\" title=\"Metrics of a Brand Equity\"\/><figcaption class=\"wp-element-caption\">Metrics of brand equity source &#8211; neil patel<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Brand equity is the worth of the brand that can be measured by various means. Some of them are discussed below:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(i) The premium price that a company can charge on its products as compared to the price of the unbranded products.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(ii) The price of the company shares.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(iii) The more sales volume generated by a brand over the sales volume of unbranded products that are in the same product category.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(iv) The ROI enjoyed by the shareholders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(v) The projected earning potential of the brand in the future.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">(vi) The brand image and its value on various parameters.<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"final-thoughts\"><\/span><b>Final Thoughts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Building a strong brand is what a company needs in today\u2019s fierce competition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Companies can leverage the idea of building a strong and unique brand and make themselves associated with a certain level of standard or a certain type of features. All these will contribute to having more brand equity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When a company achieves positive brand equity, it takes up almost half of the overall brand management. The other half comprises of the efforts that are to be taken to manage the consistency of the brand for a lifetime.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Joining a <a href=\"https:\/\/www.digitalvidya.com\/digital-marketing\/\" target=\"_blank\" rel=\"noopener noreferrer\">Digital Marketing Course<\/a> will help you learn and master the key strategies of brand equity that can help you optimize your brand presence on the web.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Having any doubts about the concepts of brand equity? Ask us in the comments below.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brand Equity: Key Components, example, and Relation With Marketing, Internet\u00a0 Marketing and sales online or offline are more effective in the presence of a strong reputation for a business. Building a brand and establishing brand equity accelerates the growth of a company.\u00a0 Let\u2019s learn and evaluate the meaning of brand equity, components, importance, examples, the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":171096,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[28],"tags":[11510,11511,11512,11513],"class_list":["post-170624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-digital-marketing","tag-brand-equity","tag-what-is-brand-equity","tag-brand-equity-model","tag-brand-equity-examples"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.digitalvidya.com\/blog\/wp-json\/wp\/v2\/posts\/170624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.digitalvidya.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.digitalvidya.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.digitalvidya.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.digitalvidya.com\/blog\/wp-json\/wp\/v2\/comments?post=170624"}],"version-history":[{"count":0,"href":"https:\/\/www.digitalvidya.com\/blog\/wp-json\/wp\/v2\/posts\/170624\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.digitalvidya.com\/blog\/wp-json\/wp\/v2\/media\/171096"}],"wp:attachment":[{"href":"https:\/\/www.digitalvidya.com\/blog\/wp-json\/wp\/v2\/media?parent=170624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.digitalvidya.com\/blog\/wp-json\/wp\/v2\/categories?post=170624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.digitalvidya.com\/blog\/wp-json\/wp\/v2\/tags?post=170624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}