Evasive, intangible, and prone to flux.
It is a concept that tries to effortlessly merge statistics and sociology into one comprehensible package. And not always in the most clearly defined way.
But to understand what we mean by Brand Equity, we first need to understand what we mean by BRAND.
So, what is brand? In uncomplicated terms, brand is simply the recall of a product by a name given by a business instead of the actual product or service. We think of Coca-Cola or Coke, instead of a liquorice coloured carbonated drink, we think of Lays being equivalent to potato chips, whereas Coca-Cola and Lays are just brands and not a product.
What we need to ask ourselves is why we think of Coca-Cola or Lays when we mean a carbonated drink or potato chips. This is where Brand Equity comes into the picture.
Brand equity is the value a brand has in the market. The more you’re willing to pay for a certain brand, the higher the brand equity. The real question though is asking why people are willing to pay more for certain brands as compared to others.
Positioning and Perception are the precarious scales that need to be perfectly balanced to help create flawless brand equity.What we need to understand by this is that equity is not a game that is played with tangible market values; equity is a carefully crafted image present in the minds of consumers.
Think of it this way, there are few quantifiable variables that affect the way consumers purchase goods – Quality, Quantity, and Price are the most fundamental aspects.A product that is of visibly better quality will get picked up more often by consumers than a product that is of an inferior kind; similarly, quantity and price point are other factors that influence consumers while choosing their buy. In a marketplace where there is more than one kind of brand selling the same product, the game of positioning a product becomes more about perception than tangible variants.
In an economy that is consumer driven, we find that businesses face stiff competition while they fight to acquire a certain market groups. Most consumers come with pre-set opinions about the brands they prefer and are rarely prompted to try a new brand. But in this dog-eat-dog world, where chunks of markets are fiercely torn apart by brand preferences, we need to take a closer look at what makes people prefer one brand of the same product over the other.
Here are some of the key factors that affect the positioning of a product in the market:
It’s a lot to do by any one person or over any small amount of time. But, acquiring a firm understanding of positioning and brand equity is incredibly important for anybody who deals the practicality of business.
The new social era in digital marketing has accepted influencer marketing as an advanced strategy to convert more viewers to customers in 2020 and online brands also pay a lot of attention to influencer marketing.
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