Brand Equity: An Overview and Relevance in the PR Industry

Brand Equity: An Overview and Relevance in the PR Industry

Chances are that if the marketing world is something that fascinates you, you might have heard of the term brand equity. Most people have at some point come across this term, but hardly some understand the meaning and the importance of this term. So what is the meaning of this term? And why is this concept so important in the marketing and PR world? Let’s discuss it in length:

What is brand equity?

In simple terms, brand equity can be defined as the value premium that a brand tends to receive because of their name in the market, as compared to their customers. In today’s market, products tend to be differentiated from one another based upon various aspects, and not just their prices. Each brand now has a personality of its own. A perception set in the minds of their customers that defines them and makes them stand out. Often different customers view some brands as superior to the rest. Customers are even often ready to pay more for a product that is offered by a particular product, even when cheaper alternatives are available. Brand equity is the value in the consumer’s mind about a particular brand. The extra value added to an otherwise identical product, because of the brand name behind it.

Now that it is clear what this term really means, it seems clear why it is so important for brands. Having positive brand equity also tends to provide many benefits to the brand. One of the most important benefits is the one we discussed before, that companies charge more for an otherwise identical product. Another major benefit is that it can also increase the stock price of the company. There are various other monetary and non-monetary benefits to this concept that can benefit the brand in the long term. Especially when it comes to PR, the concept of brand equity can majorly better things for the brand.

Now that we have understood the meaning and importance of this term, let’s discuss some ways through which brands can develop strong and positive brand equity:

Brand awareness

In order for the brand to achieve its goals, customers need to be aware of the existence of the said brand. Not just that, brands also need to make sure that the customers also understand what their goals, mission, and vision are. Customers need to have some reason to choose you over the competitors. This is one of the major ways that brands can attract their target audience. There are different ways to achieve brand awareness, and the one that works for that particular brand should be adopted.

Consistency is the key

Another thing brands need to make sure of is that they are consistent. Consistent in their work, their mission and vision, their messages, and their goals mainly. If the brand is not consistent in these things, the consumers will end up being confused instead. It will also position the brand in a negative manner. The customers should have a clear and consistent picture in their heads about who and what the real brand is.

Building and maintaining relationships

In today’s day and age, the customer is the king. It is very important for brands to understand their target audience well, serve their needs, and establish a relationship with them. In a market crowded, brands need to stand out. If a brand is able to maintain a good relationship with its customers, customers are more likely to be loyal and choose that particular brand. Being the best PR agency in India, we understand the importance of building and maintaining strong relationships with the target audience. Hence, the concept of brand equity without a doubt is quite an important one, if brands want to be successful in the long term. It can be defined in simple words, as the extra added value to the product because of the brand name associated with the product. It helps brands to stand out amongst their competitors. There are various benefits of establishing strong and positive brand equity in the market. Brands mainly need to be consistent in their work and messages and spread brand awareness. They need to understand their target audience well and try to serve their needs. They need to keep on reminding the consumers what makes the brand unique, and why they should choose that particular brand, amongst others.

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