Definition: brand value
What is brand equity?
Brand equity is the (financial) value of a brand in the eyes of its customers. It is determined by familiarity, associations, preferences and loyalty.
Importance of brand equity for businesses?
Brand equity is thus important to organizations because it can lead to higher sales, lower marketing costs and increased profits. Brand equity is therefore an essential part of a company's brand strategy and identity. It should be able to describe in a few words what the company stands for. Attributes such as connection, authenticity and distinctiveness are a few key words that can go a long way in determining a company's brand value.
What components affect brand equity?
Brand awareness
When a brand is known to its consumers or business audience, it can lead to positive impact on the company's brand equity.
Brand loyalty
The word actually says it all, loyalty toward a brand. When a person feels connected to a particular brand and prefers it to other brands.
Brand perception
A summary of buyers' feelings, experiences and thoughts about a product or service can be both positive and negative.
Brand associations
This refers to the mental connection between a brand and a concept. In other words, it describes the thoughts that come to a buyer's mind when he or she thinks of a brand.
How can you calculate brand equity?
Qualitative methods brand value calculation
Measuring qualitative brand equity often involves a combination of different methods. Through interviews, for example, insights emerge that clarify experiences, associations and perceptions with the brand.
Quantitative methods brand value calculation
To calculate a quantitative methods require measurable data and figures. Think of surveys that can be filled out by a certain type of target group, from this target group comes a large file of information. This information is measurable to calculate quantitative methods for a brand value of the company.
What is the difference between brand value and core value?
The core value is generally based on the company's mission and vision. Here they use the core values like professional or customer friendly, etc. In fact, all companies conform to these terms. But what makes the decision to choose a particular type of company? That's when brand values play a big role. When a consumer has a good feeling about a company, the choice is more likely to fall on that company.
About Comrads
Comrads specializes in the development and services of DAM solutions. Our solutions help manage and organize digital assets and actively contribute to strengthening your company's brand values. Check out our Digital Asset Management capabilities or contact one of our DAM experts. They will guide you to a more powerful brand story!