Journal

How Small Businesses Can Benefit from Brand Equity

Brand equity separates successful businesses from nonperforming ones. It’s the reason why new companies try to sell the same thing as established brands but fail at it. You know there’s a market for those goods because another company makes profits selling similar items. However, you can’t seem to convince people to leave the more established brand for yours. That’s the power of brand equity.

What is brand equity?

Brand equity refers to the customer’s perception of your company and its products. According to the buyer, your products have a better quality when compared to other similar brands. That allows you to price your items higher than the competition.

According to David Aacker, brand equity comprises five things: awareness, association, perceived quality, loyalty, and proprietary assets.[1]

Brand awareness means that the customer knows your brand beforehand. They might have heard it somewhere or used it when they were kids. Your company has to be well known if it is to achieve brand equity.

Brand association refers to something the customer often associates with your brand. Any time your brand is mentioned or the customer sees your company’s advert, they get nostalgic. It reminds them of something good.

Perception is everything in marketing. If your product has positive brand equity, people assume it is of better quality than other goods in the market.

As long as the customer believes in your brand’s value, they’ll remain loyal to your company.

Proprietary assets refer to registered trademarks and patents to prevent competitors from copying your packaging or brand name. Positive brand equity is all about protecting your customer base and preventing copyright infringements.

How to establish brand equity

Establishing brand equity is a slow and steady process, that if done right, can help you make a lot of money.

First, you have to learn about the market. Take your time to comprehend the needs of your target market. Find out what drives their purchase decisions. Some buyers only want to consume the product, while others attach a deeper meaning to their purchase decisions. Learn about both prospects if they fall within your target market.

Then, think of a clever marketing message that will appeal to your target market’s core values. Instead of talking about the product and what it can do for your customers, tell them why you do what you do. Give your business a personality so that it can feel more human.

Test your message on different platforms to see how your target audience reacts to it. During the testing phase, you can write different versions of the same message. Choose the advert that resonates the most with your target audience.

Launch your campaign to raise awareness about your products. Utilize media channels that are mostly used by your target audience. Also, make sure the campaign runs for a long time (at least six months) for prospects to get the message and have it embedded in their minds.

Once people start talking about the brand, it’s time to get to the next step, which is the most crucial. Monitor the performance of your brand. Listen to what customers are saying in the stores, on social media, and other platforms. Address their concerns and make tweaks to the products if that’s what it takes to satisfy the buyer. Maintain consistency in your campaigns – consider your brand’s personality.

Encourage buyers to give honest feedback about your brands. Respond to online queries and address negative feedback – be polite and apologize in case your brand is at fault. Alternatively, you can contact the customer directly to give them a better experience.

Finally, consider coming up with loyalty points or rewards to keep your customers.

[1] Managing Brand Equity: Capitalizing on the Value of a Brand Name. https://www.academia.edu/38495140/Managing_Brand_Equity_David_A_Aaker

Author: Stephen Wamaitha