What role brand equity plays in business development
Any brand has several components, which together form a complete picture. These include visual components, such as a logo, design, as well as a company’s values, image, and status. Each of these components influences consumers’ perception of a business and its products, forming so-called brand equity. It allows evaluating qualitative and quantitative characteristics of a company.
Brand equity is the value in the eyes of customers, how people perceive it. The assessment of such a parameter allows an understanding of the mood of customers, a level of their trust. A high level of brand equity gives an opportunity to justify an increase in prices for the product, and it will not scare away consumers. In addition, it is possible to increase the value of promotions and reduce the cost of marketing promotion. However, to achieve these results, you need to work on brand value and invest in building the right perception of products with customers. Creating the right level of capital, you can take a stable position in the market, reduce customer churn, and make the company more recognizable. Positive customer reviews and online reviews that educate consumers about the benefits of your products will help build the right brand attitude. High business value in the eyes of people will be useful when entering new markets or expanding your product line.
The main factor in building capital is trust. Having earned it, the business gets huge opportunities for development. The company becomes less sensitive to instability and economic crises. In addition, in some cases, a market crash can turn out to be a success for a brand with a high level of capital. The fact is that in crisis situations, customers will look toward a stable business whose credibility has been growing for several years.How do you earn that value? It happens that brand equity depends on how long it has been on the market. But even if the company is young, there are ways to increase its value in the eyes of consumers. The first place to start is by building a positive image of the business and its product. This can be done by systematically covering the activities in the media. A story about the brand and its benefits in a reliable publication will make it more attractive to consumers.
The second factor is high-quality content, with its help the correct positioning of the brand is created, its features are revealed. For promotion, it is optimal to use SEO, which will help users to find information about the company in search engines. And the content can be different – news articles, reflections in the blog, speeches of company representatives, webinars, product reviews, and much more. Do not forget about social networks, promotion through which demonstrates excellent results.