5 Steps To Build Brand EquityMarch 6, 2015
Where Does The Term Originate From?
By definition a brand is a way of distinguishing your offering from others in the marketplace. The etymology of the word comes from the old Norse word which means ‘to burn’ as branding was used as a means of marking property, especially to mark the ownership of livestock.
What Do We Mean By Branding Today?
Today branding is used with several different products, services, places, people and ideas, with the purpose of distinguishing each offering from another. This can be done through signage, logos, slogans and marketing messages, which are tailored to their business. This results in the brand becoming easily recognizable, differentiated and recalled quickly when needed.
What Is Brand Equity?
This is described as a premium value that consumers are willing to pay for a product with a familiar name, as compared to its generic equivalent. Below, I will outline the five key phases of brand experience that lead to positive brand equity:
1. Brand Awareness: Consumers are aware of the brand
2. Brand Recognition: Consumers recognize the brand and its offering compared to its competitors
3. Brand Trial: Consumers try the brand
4. Brand Preference: Consumers become familiar with the brand and purchase the brand again. They start to develop emotional associations with the brand
5. Brand Loyalty: Consumers must find the brand and are prepared to pay a premium for it or travel to find it. As loyalty increases customers become brand evangelists: they will fall in love with your products and become ambassadors of your company, telling all their friends how good your products and services are.
To summarize, consumers are transitioning through the 5 stages above, ranging from: brand awareness, where consumers become accustomed with the products, to brand recognition and brand loyalty where buyers will continually purchase a product, irrespective of its price, from the same manufacturer or supplier.
To conclude, as any marketing person will tell you, it is far less costly to retain customers than to attract new ones; beside customer retention, brand loyalty leads to repeat purchases, reduced marketing costs, increased pricing that will raise your profit margins, customers recommending your products, and by drawing in new customers.
Established in 1989 CDG Brand continues to deliver exciting results for its clients all over the world by creating compelling digital solutions that give the wow factor.
CDG offers a full range of brand strategy services, from brand creation to brand re-positioning, brand audits and naming cultures.
Developing and nurturing a brand strategy should be at the core of any organizations business strategy. By leading customers to experience higher perceived quality and emotional attachment, CDG makes brands memorable and easily recognizable leading to increased brand equity.