Question

4. Please explain the many components of brand equity. ho

Answer 1

Brand equity is a distinct component of the company's overall worth. This can be made as the aggregate of assets and liabilities associated with the brand name and symbol which tends to establish the relationship customers with the brand. Brand equity is reflected in the way consumers see; feel as well as act toward a given brand. In addition , the influence of these intangible assets is very evident in terms of stock values, securities, productivity and demand, with the record books.

The first step of the brand building process is to create awareness in the minds of consumers about the brand name. That means consumers are aware of the brand and are willing to associate it with a particular category. Building brand awareness will help marketers increase brand exposure through various marketing campaigns to target audience.

Brand affiliation is something that applies to a customer's favorite brand. Getting into brand interaction allows for such associations. It is important to have a good brand association as it leads to repetitive sales and provides the word of mouth marketing for business. These organizations exploit the mark and give new business entrants a tough time.

That is the aggregation of consumer interaction with the brand as a whole. If consumers have the right brand experience, they will consider the brand as superior and continue to favor it over others. How do you feel for example when you eat at McDonald's? How is the overall internal climate, how does the staff work and what is the food quality? The company has to maintain uniform standards throughout the world's outlets to offer the same experience.

Strong brand equity is key to fulfilling brand promise. Using different quantitative and qualitative criteria, the consumer appears to compare products with other similar brands. The perception of quality also impacts a firm's pricing decision. If a business produces quality goods, high price comfort may be taken advantage of.

Brand loyalty is the customer's preference for a label over similar items on the market. This leads to repeated sales, and is the best way to spread word of mouth. If a company has a higher loyalty to the brand, it can help reduce marketing costs. The company is also able to introduce new products which target the same customer base.