Brand equity is a marketing term used to refer to the marketing impact of a given product in association with a brand name. It tries to examine how a given product will perform in the market if it did not have the privilege of that brand name. Therefore, the basis for brand equity and its impact on a business is based on the knowledge of the customer about that product. And yet, brand plays a vital role in helping build that knowledge and awareness, as well as the choices they make based on that knowledge.
Brand equity, then, reinforces the significance of a brand’s value and produce that positive type of recall in the mind of consumers. Marketing research has revealed that brand equity is ...view middle of the document...
Therefore, actual experience plays a crucial role in the marketing strategy, especially in a developing brand.
Benefits of a Powerful Brand Equity
Not all brand equity is positive; therefore most companies invest on building a strong brand equity. After all, it provides several benefits to the company. Below are just some of the helpful benefits that a company can derive of good brand equity:
. Establishes a more reliable stream of income.
* By increasing brand equity, companies are also able to increase their profits through increased market share and premium pricing for less promotional costs.
* If you have established a good brand, then you can sell that brand name at a given price.
Brand equity of proctor and gamble:-
Proctor & Gamble Success Factor P&G has a global leader position in the consumer goods industry with many well-known premium products in its portfolio like: - Fabric and Home Care: Tide, Cascade - Baby, Feminine and Family Care: Bounty - Beauty Care: Max factor, Cover Girl, Head & Shoulders - Health Care: Crest - Food and Beverage: Folgers Coffee Today P&G has 250 brands. P&G speeds up the...