Brand Equity

Brand equity can be defined in many different ways. I have developed a simple, yet powerful, definition of brand equity. For a brand to be strong it must accomplish two things over time: retain current customers and attract new ones. To the extent a brand does these things well, it grows stronger versus competition, and delivers more profits to its owners.

Breaking down the definition of "brand equity" into its two components, we can more easily determine a reliable way to measure brand equity, and to track changes in brand equity over time. The components of brand equity, retention and attraction of customers, stem from people's experiences with and perceptions of a brand.

The ability to retain customers is largely experiential. High equity brands exhibit stronger levels of customer satisfaction and loyalty. History has shown that consumers will continue to buy a brand that offers them "their money's worth."

The ability to attract new customers is largely perceptual. Because customers do not have actual brand experience, they must go by what they hear, see and believe about a brand. The two primary ways the market receives this information is through messages controlled by marketing, such as advertising and PR efforts, as well as uncontrolled messages such as press stories and "word of mouth."

To measure how strong your brand is copy and paste: (http://brandidentityguru.com/bightml/brandmasterpiece.html). Then click "Take the brand strength test". This is a short survey that measures the strength of any company's brand. It's a great tool to see where you are today.

Scott White is President of Brand Identity Guru (http://www.brandidentityguru.com), a leading brand consulting and market research firm located in Easton, Massachusetts, USA, near Boston.

Brand Identity Guru specializes in creating corporate and product brands that increase sales, market share, customer loyalty, and brand valuation. Over the course of his 15-year branding career, Scott White has worked in a wide variety of industries: high-tech, manufacturing, computer hardware and software, telecommunications, banking, restaurants, fashion, healthcare, Internet, retail, and service businesses, as well as numerous non-profit organizations.

Brand Identity Guru clients include: Sun Life Financial, Coca Cola, HP, Sun, Nordstrom, American Federal Mortgage, Simon (America's largest shopping mall manager) and many others, including numerous emerging growth companies.

Scott White is a very enthusiastic speaker and has the gift of being able to explain the principles of branding in a compelling and entertaining manner so that people at all levels can understand.

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Branding Information:

Related Articles

The New Branding Awareness - A Value Based Concept
The new branding awareness is about when you take ownership of a commodity, a special talent, concept or product. What is it that you stand for? What you stand for is an experience that your customers feel from you.
Does Your Message Pass the Test?
Develop an effective benefit message and you're well on your way to building your company's entire marketing program. After all, you need focus to create success.
Corporate Branding - Dont Forget Your CDs!
Companies have been branding their collateral materials such as letterhead, envelopes, business cards, etc. for years.
Branding Junk Removal - He Did It, Can You?
What does it mean to be remarkable?Brian Scudamore, CEO and Founder of 1-800-GOT-JUNK?, who in 1996 was operating the million dollar plus company at the age of 26, said it means, "You've got to get out there and be loud and proud..
Logo Files: Versions Of Your Logo That You Should Own
Your logo is the most important graphic element in which you will invest for your business. You should own the logo in many file formats.
Wealthiest 10% of Americans Name Top Quality Brands for 8 Products in New Survey
The seventh in a continuing series of twice-yearly surveys by The American Affluence Research Center (AARC) reveals the brands considered to have the highest quality, regardless of price, by the wealthiest 10% of Americans, the 11 million households representing about half of all consumer income and spending, a third of the total US economy, and 70% of the personal wealth of Americans.Just released, the AARC report, The Luxury Market: Spring 2005 Survey of Affluent Americans, shows the affluent named Rolex, Cartier, and Tag Heuer as the top three brands for quality, regardless of price, for lady's fine watches.
Branding 101: Why Its Critical to Business Success and How to Do It Right
What's Your Brand?A brand is a product/company personality that helps distinguish it from the competition. It evolves out of the product essence.
Counterfeit Branding - Representing True Globalisation!
From cigarettes to fashion accessories to food products to medicines, more than 50% of the global market are filled with counterfeited products. Do you realise that the Nike t-shirt that you are probably wearing right now may not even exist in the design portfolio of Nike Inc.
Time To Revamp Your Visual Identity?
Look at your company logo. Does it fade into the background against other images you use to promote your company? Has it become dated? Does it still fit with your company vision? Is your message connecting with the customers you want?Your visual identity is a vital tool in communicating the essence of your business.
Types of Logos
There are three basic types of logos: text, symbol, and combination logos. The type of logo that will work best for your company depends on a number of considerations, such as the size of your company, the uniqueness of your name, and a variety of other factors.
Brand Strategy - Brand Value - Brand Identity Guru
Developing brand strategy is extremely critical. The most important asset your company has is its brand.
Fast Forwarding Your Business
If you think only big corporate names need to think about things like brand names, think again. Your brand says a lot about you and your business, and that's as true for a one person home-based operation as it is for a multinational conglomerate.
Choosing the Right Color Palette
Color is a highly personal experience - everyone has favorite colors, and other colors that they absolutely don't like. So, how do you determine which colors that will work for your business identity, and that will send the right message to?We have developed several methods and approaches for determining successful color palettes.
Multi-Brand Franchises in the QSR Sector
Well not everyone is aware that McDonalds also owns several other bands such as Boston Markets; 650 stores in 23 states, Chipotle Mexican Grill; 230 stores in 10 states, Donato's Pizza 200 stores in 10 states, Pret a Manager 140 stores in 4 countries, Fazoli's 400 units in 32 states and two countries. Of this the company derives 2 Billion in annual sales, this is not even counting McDonalds.
Starbucks: Please Don't
There they go again. Starbucks Corp. is on a mission to boost sales of glittery snow globes and other non-coffee items.
Boston Brand Building - Brand Identity Guru
"Make no little plans, they have no magic to stir your blood..
Do What Works
"Can you hear me now?"You'd be hard pressed to find someone in the US who doesn't know the company behind that question.So why do big companies, like Verizon, hammer us with the same message over and over? Because it works.
Brand Building 201: Finding The Ideal Way
The strongest and longest lasting brands branch off of anexisting category. Branching takes patience and time.
What the Heck is Branding and Why Should I Care?
There's been a lot of buzz lately about branding. But what exactly is it, and who needs to do it? Simply put, a brand is what makes your business uniquely YOU! It's the way you present your business and how the world perceives it.
Branding - More Than Just a Statement - A Memory Scar
Conjure up in your mind broad rolling meadows with runs of cattle or stock of some type, all discriminate by virtue of a registered brand. That's a most common and accepted understanding of branding.