“While some believe that brand equity is a function of its market share, others believe that it is how the brand is held in the customer’s mind. It is possible for a brand to have a higher mind share than market share.”
The estimation of value is subjective, as the ratio of the benefits to price is dependent on the customer’s perception of the worth of those benefits relative to the price they are paying. Value perception provides insights as to where you are lacking as a brand.
Creating a benchmark can be used as a way to measure the ROI of your brand equity work, the impact of the strategies carried out, and the aspects of business most affected by the brand changes.
Price plays an important role in every buying decision. But price cannot be looked at in isolation; it must always be set against the benefits that people believe they receive. Pricing becomes pivotal as too low a price can signify no trust in the product whereas a price hike will result in the consumer questioning the value received.
Everyone knows the importance of competitive advantage – by knowing where your competition’s brand stands, you can gain the upper hand.Market opportunity is realized when you promote the aspects of your brand that the competition does not stand for.
The underrated power of brand equity is the ability to rely on it for unanticipated reasons. No one can predict mistakes, or they wouldn’t make them. Companies aren’t perfect. Brands can blunder. The equity a brand builds can be a safety net. If people like your brand, they tend to extend forgiveness. This is a fact.
Behind brand equity is an agency. The power of it drives success.