Brand Equity is the sum total of all the different values people attach to the brand, or the holistic value of the brand to its owner as a corporate asset. Brand equity can include – the monetary value or the amount of additional income expected from a branded product over and above what might be expected from an identical, but un- branded product; the intangible value associated with the product that cannot be accounted for by price or features; and the perceived quality attributed to the product independent of its physical features.
A brand is nearly worthless unless it enjoys some equity in the marketplace. Without brand equity, you simply have a commodity product.
More Things to Know About Brands – As mentioned earlier, a brand is more than just a word or symbol used to identify products and companies.
A brand also stands for the immediate image, emotions, or perceptions people experience when they think of a company or product. A brand represents all the tangible and intangible qualities and aspects of a product or service. A brand represents a collection of feelings and perceptions about quality, image, lifestyle, and status. It is precisely because brands represent intangible qualities that the term is often hard to define. Intangible qualities, perceptions, and feelings are often hard to grasp and clearly describe.
Brands create a perception in the mind of the customer that there is no other product or service on the market that is quite like yours. A brand promises to deliver value upon which consumers and prospective purchasers can rely to be consistent over long periods of time.
You Already have At Least One Brand – First of all, you must understand that you already have a brand. Everyone has at least one brand. Your name and who you are is, in fact, your personal brand. The brand called “you”. The issue then is not whether you have a brand; the issue is how well your brand is managed.
