What Is Brand Equity? And Why Does It Matter More Than You Think?
Brand equity is basically how consumers identify a company, product or service. What you want your company’s brand to be is one of the most important marketing decisions you will make. The brand gains value when it is recognized positively by customers. This process of recognition is called “brand equity.”
Brand equity describes both the values of the brands as well as the brand’s components. It involves the monetary value and market awareness while keeping in mind the consideration of the product value. Branding has a significant impact on the demand for a product or service. The higher the brand recognition, the higher the demand; therefore the higher prices people will pay.
Brand Equity Can Be Measured Using Several Methods
One way to measure brand equity is to determine the price premium of a product. A customer might be willing to pay $100 more for the branded product over the same unbranded product. This is beneficial information in evaluating the value of your brand.
For example, Converse can charge approximately twice as much for their shoes than Airwalks, which are very similar, but without the brand name.
2. Brand Extensions
Brand extensions involve further development of the brand by using the same platform to introduce related products. This increases revenue by decreasing advertising cost and lowering risk from the customers’ point of view, as the existing brand has instilled confidence in its customers.
3. Consumer Loyalty
Consumers are the primary consideration in the process of brand development.
A positive experience of consumers towards the brand leads to a better outcome. Brand awareness in the consumer can be created using samples and developing customer satisfaction with the quality and the cost.
What’s The Relationship Between Brand Equity & SMM?
Measuring brand equity through social media marketing involves different tools. These tools are used to monitor sites and provide feedback through social media contents.
Branding through social media marketing can bring different opportunities to explore to put a positive effect on the brand. Brand equity increases with a company’s active participation in social media marketing. They communicate effectively in the communities by creating a positive effect on the brand. Above mentioned tools can be used to measure the brand equity, among other methods.
One of the simple and less time-consuming processes in measuring is to analyze the traffic coming towards the site. This can be done using Google Analytics. Look at the traffic coming towards the website with different keywords. Compare the numbers before and after you implemented the SMM campaign. Interaction and communication through the websites increase the flow of traffic towards the site. Continuously watching how your social media campaign is working can lead to better outcomes.
Social media marketing can act as the key to establishing brand awareness as well as contributing to the growth of a business.
In a social media marketing campaign, you have an advantage – it lowers advertising costs and efforts because it quickly creates awareness in a much larger target market.
Social media marketing involves different strategies and other social media channels to build brand equity. Measuring brand equity through social media marketing has 6 main benefits that separate it from other sources.
These benefits are:
- Increased revenues: Through SMM more sales can be generated by the use of brand engagement.
- Powerful customer relationships: Relationships among the customers can be maintained through SMM networks. Brand loyalty can be increased, and it can help support the development of your business.
- Traffic to site: Search engines can help maintain the traffic towards your site. Different channels also help support the position of the site.
- Competitive market: To compete in the market, social media marketing helps you study the behavior and interests to understand your customers’ needs better.
- Enhanced brand: You can manage the opinions of the public toward your brand by monitoring the different conversations taking place.
- Recommendation power: When your marketing of the product is established people will recommend it to one another. This will give it publicity through word of mouth.
Social media marketing gives you monitoring power for your brand. SMM is almost a mind reader. It can be used to build your brand as well as maintain the position of your brand in the market. Social media marketing is the reasonable approach to establishing the brand equity to reach towards the potential target market.