Brand Equity is: Definition, Benefits, and How to Increase It

Basically, Brand Equity is the power of a brand or brand. With a strong brand, a company can carry out good management in various aspects, increasing cash flow, expanding market share, determining prices, restrictions on advertising costs, etc.

However, there are still many businessmen or marketers who are still unfamiliar with understanding of this brand equity. For that, this time we will discuss more complete about Brand Equity for you. The following is an explanation of Brand Equity.

Brand Equity is

Reporting from the official Wikipedia page, Brand Equity is a variety of assets and also brand trust related to a particular brand, whether it is a name or symbol, which is able to change the value given to a product of goods or services, both for marketers and for the customer’s party .

As for customers, Brand Equity will be able to provide a strong assessment related to their understanding of processing information, fostering self-confidence, and also increases customer satisfaction.

The high value of brand equity for marketers or business people is able to increase their success in a marketing program that can attract new consumers or also embrace old customers.

This is most likely due to a more famous brand it will increase the effectiveness of a promotion.

Based on experts, Brand Equity is

Kotler and Keller

The two economic experts above explain that the understanding of Brand Equity is the added value given to a product of goods or services. Brand equity can be seen how customers think, feel, or act in a particular brand, as well as prices, market share and benefits value capable of being given for a company.

Supranto and Limakrisna.

Supranto and Limakrisna explained that Brand Equity is a value determined by the customer on a brand inside and outside the attributes or characteristics of the value of a product functionality.

Tjiptono

Tjiptono argues that brand equity is a series of assets and the value of brand obligations that are closely related to a name, brand or brand, and symbols that are able to change or reduce the value capable of a product of goods or services to the company and or customer from the company.

Susanto and Wijanarko

Susanto and Wijanarko explained that Brand Equity is a brand liability and a set of assets that are closely related to a brand, name, and symbols in it to increase or reduce the value capable of a product of goods or services to the company or to customers from the company alone.

The advantage of having a strong brand

There are a lot of benefits if a company already has very strong items. However, there are some things that you really need to know why many big brands can survive in the tightness of business competition. The following is the explanation.

Resistant to competition

Did you know why the iPhone and Samsung brand is still in great demand by gadget lovers even though there are already many brands that have sprung up? This is because the two brands have been trusted by many customers.

That means, by creating a strong brand, you will be able to get Royal customers. In addition, you will continue to move as usual, whatever happens, without having to worry even though there are many business competitors because you already have loyal customers.

No need to be afraid to raise prices

A businessman who is afraid to increase prices is a businessman who is still doubtful about his own products. This is certainly different from the goods whose quality has many famous.

Even though they increase the selling price, there are still many people who have paid the expensive product because customers have understood the quality of the product.

For this reason, the brand is very closely related to customer trust. By building a strong brand, surely you can get strong trust from customers. So, you don’t need to worry about increasing your selling price.

Do product differentiation

Did you know why many big companies can defeat their competitors? This is nothing but a large company capable of differentiation of a product. When there is a sense of trust from the customer, it not only increases the selling price of the product.

They will also do product differentiation, so their brand name is getting stronger and destroying its business competitors. So, what should you doubt? Maybe the advantage of the brand equity is far from what you have imagined.

But now you have to be able to rush to put your brand if you don’t want to be defeated by your competitor in the market competition which is currently getting tougher. The following is the best way to improve your brand equity.

How to Improve Brand Equity

Before we discuss how to improve brand equity, you need to know that there are at least four dimensions of Brand Equity. The understanding of the dimensions of this brand equity is great so you understand how a good way to improve brand equity.

The four-dimensional brand equity is brand knowledge, brand quality, brand association, and brand loyalty. The first dimension to third will determine how strong your brand is in stimulating customers to buy the product you provide.

If the three have succeeded you do, then the fourth dimension will automatically get it. The four dimensions of brand equity above are the basic ways to improve your brand equity. The following is how to apply:

Variations in terms of marketing activities

At the Indonesian Brand Summit seminar in 2014, Prof. Kevin Lane Keller stressed the importance of carrying out various types of marketing activities, ranging from conventional marketing activities to internet marketing activities.

One thing you have to underline is you have to make sure that there is a value or value that can be obtained by the customer if they buy the product you have to offer.

Therefore, marketing is not just to make people know the existence of your business, but also makes them interested in buying your product.

Build the tissue

Increasing the brand equity does not only do it by marketing or marketing, but also must be with the network you have. That means, you must be able to interact with many people without the intention to offer your product. He will indirectly know your brand.

Organize events

The most subtle and effective way to increase brand equity is by organizing an event. By holding an event, there will be many people who are interested in coming. That’s when the community will be aware of the brand that you introduce to them.

Functions and Benefits of Brand Equity

It is realized or not, the fact is that brand equity can affect the level of consumer confidence in making decisions in buying your product, both because of the past experience in using your brand or the closeness they feel with the brand and characteristics of your brand.

Simamora explained that Brand Equity has several benefits and functions, namely:

Loyalty, with loyalty it will increase the potential for purchases or repurchases or if the consumers are commited buyers, they will not only stop at repurchases, but they will also recommend your product to others.
Allows you to increase higher prices. That is, you can get more profits.
Provide credibility to other products that use your brand.
Increase more repurchases
As a differentiator between more clear competitors.
Allows consumer tolerance to product or business errors in the presence of high loyalty to your brand.
Become one of the factors to attract quality employees and maintain employee loyalty
Attract consumers to only use brand factors when buying a product.

Conclusion

Based on the explanation above, we can draw the conclusion that brand equity is various assets and also brands of brands related to a particular brand, whether it is a name or symbol, which is able to change the value given to a product of goods or services, both for the marketers and for the customer.

The high value of brand equity for marketers or business people is able to increase their success in a marketing program that can attract new consumers or also embrace old customers.

In the end, strong brand equity will be able to provide benefits for the company in terms of profit, so the company’s main objectives can be easily achieved.

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