How to Build Brand Equity

4201 Words Apr 9th, 2011 17 Pages
How to build brand equity

Contents
I. Introduction

II. What is brand equity?

• Definition: Brand equity

• Sources of brand equity

• Positive brand equity vs. negative brand equity

III. Creating brand equity

• Brand position

• How to create brand equity? - Selecting brand elements - Integrating with marketing activities - Creating secondary brand associations

IV. Summary and Conclusion

V. References

Introduction

In modern society, brands play an increasing vital role in marketing. With the fury market competition and the increasing homogeneity of products , brands act as a powerful strategic weapon to win in the market competition. At the same time, brand equity, as one of the most valuable intangible
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Brand knowledge include two characteristics: brand awareness and brand image.

Due to unsatisfactory and uncertain information in the markets, consumers may depend on the existing brand awareness to help them make decisions(Homburg et al,2010). Brand awareness is mental thoughts to recognize the brand via existing memory. Therefore, incessant exposal can enhance familiarity with the brand, like marketing publicity.

Brand image ,as an indispensable complementarity, impact consumers' decisions through brand associations. Brand associations make consumers have different, positive and exclusive links to products. To build a strong brand equity, companys should convey exclusive and positive brand association to consumers. For example, considering Sony, consumers alway link with colourful, creative, digital and so forth. Diverse associations have been linked with this brand. These brand associations ultimately work on consumers' decisions.

Positive brand equity vs. negative brand equity

According to the concept customer-based brand equity, it can be divided into positive brand equity and negative brand equity. When consumers have pleasant reaction on a brand, the brand is considered having a positive brand equity. As you mention Land Rover, Apple and Virgin, you immediately aware of bright side. Such brands have great competitive power in the market.

On the other hand, because of disastrous and unsatisfactory occurrences, some brands' reputation are blown upon. Thus,

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