Hey guys, today we will talk about brand equity and how it plays the important role in every business? Many peoples do MBA but still, they have no knowledge about it, but today we will learn what is the brand image? so lets start.
Brand equity is based on consumer preference’s or tastes for any product and favorable consequences or effects of any brand use.The more of the preferences and recall value means the more of the equity of any product.
These brand names replace with the products. There are so many examples in our daily life of brand image like-
- Noodles means-Maggi
- Toothpaste means- Colgate
- Water means- Bisleri
- Cold drink means- Coca-Cola
Brand Awareness- Brand awareness is the chances that consumers are going through with the life and availability of the product. The brand is widely known and recognized, and consumers know what it provides in relation to the competition.
There are two types of brand awareness:-
- Aided Awareness- In the aided brand awareness consumer may recognize that brand from the lists of brands shown. Aided awareness depends on the promotional techniques for ex- advertisement,
- Immediate brand recall- In the immediate brand recall consumer may choose that brand that recalls his mind firstly according to their utility. Immediate brand recall depends on the consumer preferences.
Perceived Quality- Perceived quality can be defined as the ability of consumer’s of the overall quality or branding of a product or service provided by a seller with respect to its product.
Brand Association- Brand association can be both positive or negative. Every brand wants to become a positive association.Every company wants its products to be associated with something good and related to their niche of business. If a customer sees the brand as positive, this would directly lead to improved sales. If the association is negative, the business would not rise or rather fall.
Brand Loyalty- In Brand Loyalty, we all want to consume that product which we have trust or loyalty.which we use or consume for many years. And on the other hand, we don’t want to consume or purchase any other product which we are not using or any substitute product. It is measured through methods like word of mouth publicity, repetitive buying, price sensitivity, commitment, brand trust, customer satisfaction, etc
Advantages of strong brand image
By the help of a strong brand image, there are huge chances of increase in the rate of margins or profit.
The brand image also helps to get consumer loyalty.
It also helps in the expansion.
It also helps to get competitive advantage.
Why is it important to develop brand equity?
The brand image is the value or prestige of a brand or can be summarized as the recognized value by consumers over other products. The equity of your brand is important because, if your brand has positive brand equity, you can charge more for your products and services than the existing products or other competitors.