A strong brand creates loyalty and can be a company's most valuable asset. Brand equity derives from past actions that shape the current image. Building future brand equity involves creating a brand identity program grounded in the product's value proposition and enhanced by integrating additional attributes like personality and visuals. Organizations then integrate their brand identities into a cohesive brand system to maximize clarity, eliminate confusion between brands, and generate synergy. Since brands are strategic assets vital to long-term success, building brand value through identity programs tied to the value proposition is critical for an organization's viability.
Brand equity refers to the value premium a company gains from a recognizable product compared to a generic equivalent. It's created by making products memorable, superior in quality, and easily recognizable. Brand equity is generated through brand awareness, brand loyalty, brand image, brand associations, and competitive advantages from proprietary elements a brand controls. It allows financial valuation, guiding marketing decisions and setting growth targets. Brand value directly impacts profit margins when premium pricing applies. Among competitors, brand equity signifies market dominance and company strength. Creating and managing brand equity presents unique challenges compared to other company assets. Brand perception evolves constantly in consumers’ minds beyond the control of brand owners. However, brand equity does not depreciate like tangible assets. In fact, iconic brands gain value over decades and centuries. Companies seeking to expand brand equity must craft coordinated brand identity systems. Brand identities clarify and enrich consumer perspectives on product attributes, organizational attributes, brand personalities, and visual brand identities. The challenges of brand building face skepticism even within companies investing in branding activities. However, iconic brands wield unmatched authority to drive profits while transcending price competition. Brand equity compounds exponentially when skillfully managed over decades. Maintaining focus to develop breakthrough brand identities enables companies to redefine entire product categories.
book.moreChapters
