Brand Equity and Brand Loyalty
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Brand Equity and Brand Loyalty

Brand Equity Brand equity means the marketing effect of a brand. Brand Equity refers to the outcomes that result from the marketing of a particular product or service because of its brand name and that would not occur if the-same product or service did not have the brand name.

Brand Equity and Brand loyalty

Brand Equity

Brand equity means the marketing effect of a brand. Brand Equity refers to the outcomes that result from the marketing of a particular product or service because of its brand name and that would not occur if the-same product or service did not have the brand name. Brands have equity because they create high awareness, many loyal customers and a high reputation for perceived quality, etc.

Thus, brand equity means the marketing and financial value associated with a brand.

Some brands have high equity, i.e., great power to capture the preference and loyalty of consumers. A brand with a strong equity is a valuable asset for the seller. High brand equity endows a company with many competitive advantages. An influential brand enjoys a high level of consumer consciousness and loyalty. The company has better bargaining-power with distributors because consumers expect retail stores to carry the brand. Brand name enjoys high credibility. Therefore, the company can more easily launch brand extensions. Powerful brands also provide a defense against fierce price competition. Customers are willing to pay a higher price for a popular brand.

In order to build high brand equity, a brand needs to be managed carefully. Continuous R&D. effective advertising, excellent customer service, good quality are some of the steps taken to build brand equity.

BRAND LOYALTY

Loyalty is at the heart of equity and is a very important brand equity asset. Brand loyalty means commitment of customer towards a particular brand. Brand equity creates this commitment by boosting the confidence of customer. When the brand loyalty is high, customers identify with the brand so much that they perceive it a part of themselves and a source of self expression. Such fanatical brand loyalty is a huge asset for the company because

• It ensures high sales turnover.

• It helps to reduce costs of marketing.

• It provides defense against competitors

• It enables the company to charge higher prices than competing brands.

• The company can leverage the brand into extensions .

• It gets support and cooperation from distribution channels.

• It helps to attract new customers through strong positive word of mouth publicity.

 

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