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Brand Value vs Brand Equity

Brand Value vs Brand Equity , infusive
Brand Value vs Brand Equity

Brand Value vs Brand Equity

There is no debate going around for brand value vs brand equity. To have a keen knowledge of brand we must know about the difference between brand value and brand equity.

Brand equity is the value of a brand to customers, while brand worth is its financial importance. Brand equity and brand value can be used to estimate the brand’s worth.

What are brand value and brand equity?

Although brand equity and brand value can be confused, they are not the same thing. There is often confusion about how each one differs. What are brand value and brand equity?

Here’s about brand value and brand equity

Brand Equity

Brand equity is a set of assets and liabilities that add to or remove from the value of a present or projected product or service driven by the brand, such as brand exposure, brand connotations, and customer loyalty. It’s a crucial concept in marketing and business strategy development.

Brand equity was an important strategy for supporting and creating an understanding that brands are assets that are capable of driving corporate performance over time in the 1980s. That idea changed people’s perceptions of what marketing is, who does it, and what part it plays in a company’s overall strategy and operations.

Brand equity can also alter the perception of brand value. It shows that a brand is more than a tactical tool to generate short-term revenue, but also strategic support for a business strategy that will create long-term value for the organization.

Brand Value

On the other hand, brand value is the brand’s financial worth. Businesses must estimate the brand’s market value. In other words, what price would someone buying the brand be willing to pay for?

Important to remember that brand equity is not always equal to brand value.

How should Brand Equity and Brand Value be measured?

Brand equity is a collection of assets and liabilities that contribute to or detract from the value of a product or service, such as brand visibility, brand associations, customer loyalty, and brand association. We’ll be looking at each one.

Brand Visibility

This is a sign that the brand is well-known and credible in relation to a customer’s specific needs. The brand won’t be considered if a customer searches for a purchase option and does not appear to be available, or if the brand is perceived as unable to provide adequate service, it will be ignored. For example, BivocalBirds has done smart branding to enhance visibility.

Brand Associations

Any association with a brand is anything that creates a positive or adverse relationship with the brand or feelings towards it. It can be based on the brand’s personality, organizational ideas, and self-expressive benefits in addition to its practical benefits.

Loyalty to Customers

Having loyal consumers ensures a steady stream of sales for current items and future products from customers who believe in the brand’s offers and won’t waste time comparing alternatives with lower pricing. Marketers can justify giving loyalty priority when building brand equity. brand value vs brand equity.

In the short term, driving brand value

A brand’s value is its ability to generate short-term and long-term profits. Programs that drive short-term products, such as price promotions, can cause brand damage. how to develop brand equity

This tendency can be mitigated by looking at how a brand can drive short-term financial results.

Brand Loyalty

Lower Marketing Costs

Trade Leverage

Attracting new customers through awareness and reassurance

Time to Respond to Competitive Threats

Brand Visibility

Anchorage to which other associations can be attached

Familiarity leads to liking

The visibility that helps you gain consideration

Signal of Substance/Commitment

Brand Associations

Communication of information


Reason to Buy

Create Positive Attitude/Feelings

Extensions Basis

Long-Run Brand Value Improvement

Proponents of brand equity face a constant challenge: proving that creating brand equity has long-term benefits is one of their main challenges. Brand equity is not the only driver of profits. Completive actions are required and strategic decisions can’t wait for years. How to manage brand equity?

However, there are some perspectives that can help you understand and measure brand equity’s long-term value.

1. Assess the Brand’s Role in Business

One way to assess the role of a brand in a company is to do so by estimating its value. Based on future earnings, the value of a business within a product market like the Ford Fiesta in the UK is calculated. A group of experts identify the tangible and intangible assets and determine the relative position of the brand. They also consider the business model and any information regarding the brand’s relative visibility, associations, and customer loyalty. brand value and brand equity difference, how to enhance brand equity.

To determine the brand’s value, we add up the value of each product and market to calculate its value. This can be anywhere from 10 percent to 60 percent for B2B brands, or more than 60 percent for brands such as Jack Daniel’s and Coca-Cola.

2. Observe Investments in Brand Equity

Investing in brand equity, on average, increases stock return, the ultimate measure of a long-term return on assets, according to the second approach. They used time-series data to determine the direction of causality and information about the accounting-based return on investment (ROI).

Consistent results showed that brand equity had a similar impact on stock returns to that of an ROI change. It was about 70% effective. Advertising, however, was not tested. It had an effect on stock returns except for that which was captured through brand equity.

3. Look at Other Valuable Brands

Another approach is to examine case studies of brands that have made huge contributions. Let us consider the power of Apple’s personality and innovation image; BMW’s “ultimate driving machine” benefits; and Whole Foods Market’ capacity to define a whole subcategory. How to increase brand equity?

The fact that two cars were manufactured in the same factory from 1989 to 1997 using the same design, materials, and marketing under the same brand names, Toyota Corolla (GEO Prism) and Chevrolet (GEO Prism). The Corolla brand was 10% more expensive, had lower depreciation over the years, and sold many times as much as the Prizm. Experts and consumers both gave it higher scores. It’s the same car! The only difference was the brand.
what is brand and brand equity?

4. The Conceptual Model

It is important to think about the conceptual model that surrounds a business strategy. What is the business strategy? What strategic role does the brand play in supporting this strategy? It is crucial. What is the alternative to creating brand equity and leveraging it? How will this impact profit streams in the future? Tom Peters, management guru, said it well: How to strengthen brand equity?

“Price competition is inevitable in an ever-crowded market. Winners will find a means to build long-term value in the minds of their customers.”

Last Thoughts The driving force behind much marketing and business strategy is still brand equity. It must be understood both conceptually and operationally in order to make it work. It is also important to tie it to brand value in a credible way.

Check out our brand value-enhancing strategies on Infusivemedia.com.


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