Brand equity is a commonly used marketing phrase that means brand value or worth. It is how consumers view the brand name of a product. It may not necessarily be the specific product, but the familiar maker of the product often sells the product.
A clear illustration of this point is the brand name versus generic or store brand comparison. The brand name usually wins when placed side by side with store brands or generic versions even though some generics may be as good as, or even superior to, the brand name.
Brand equity or brand value can be negative or positive in the marketing world. Brands which have performed well over the years develop desirable brand equity.
Likewise, brands which have not lived up to the quality they profess create bad reputations. Brand equity, good or bad, takes time to build. Invariably, bad or negative brand equity builds much quicker and is extremely difficult to ever overcome.
What is that saying about bad news traveling ten times faster than good news? Be careful to establish your new product with favorable brand recognition from the start. Follow the steps below to build desirable brand equity for your product.
Believe it or not, one of the most important features of your brand starts with something very simple. It plays a central, key role in establishing your brand. Some marketers tell clients to get the logo out there long before your product arrives. The strategy is to build customer suspense and eagerness to try it.
Your product logo is what buyers will come to look for. It is the single most effective recognition tool you can use. Be careful with it. They are hard to change, and a bad one is difficult to shed.
Amazingly, people connect with your product or don’t through its logo. If you are not artistic, or if you need guidance with this first step, use online logo software to create a professional level logo. Lucidpress has an excellent logo creator. This first step has to be carefully thought out if you are envisioning a grand product launch that generates high sales volume.
You must identify yourself to consumers. Tell them who you are. Align your self-identity with your logo. This match is critical.
If you are selling a new peanut bar, your logo should be some version of a peanut, comical or otherwise. Translation: your identity, message and product must be consistent.
After you have told the public who you are with your logo and identity statement, you must tell them what you are. Specifically define your product. Tell the market what your product represents, or what it stands for.
There are two parts to telling what you are. First, you tell them how your product works. How does it perform? What is its function? How does it meet customer need? What are its outstanding features? Price and reliability or durability are two major points to stress.
The second part of telling buyers what you are is how they connect with the product. What need or desire does it fulfill? What is its psychological impact and value? This a vital part of what you are. If your product does not connect psychologically, it will be rejected.
Measure public response to your product. You will generally get immediate feedback. You have laid your product and your company out there, and you will get a reaction.
It is incumbent upon you to correctly read and analyze response to your product. Ask questions or include response cards with your product. Critical adjustments must be made early not months or years down the road.
Evaluate your product’s market footing. Determine whether it is getting included into the buyer’s psyche. Do this by paying attention to repeat buyers.
Check social media where your product is apt to be shared or discussed. Look for a developing network of loyal buyers.
Keep your product consistent and current. After having established market footing, maintain product quality. Put in place production standards and procedures which strictly adhere to established public perception of your product reliability.
Reward your customer base. Nothing increases loyalty better than acknowledgment. Use incentives and free samples for established, regular customers when you add another line.