What includes a brand?
A brand includes all names, symbols, characters or other company or product features that allow customers to distinguish your brand from competitors. These detectible symbols are tangible.
The intangible parts of a brand are the meanings and perceptions that costumers get from these brand traits.
What does brand equity mean?
Brand equity refers to a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability. Mass marketing campaigns also help to create brand equity.
Why brand equity is considered an intangible value?
Because it is not a physical asset and is determined by consumers’ perception of a brand. A brand’s equity contributes to the overall valuation of the company’s assets as a whole. Positive brand equity is achieved when consumers are willing to pay more for a product with a recognizable brand name than they would pay for a generic version of the product.
In contrast, a brand’s equity is considered negative when consumers are not willing to pay extra for a brand name version of a product. Since brand equity is an intangible asset, as is a company’s intellectual property and goodwill, it cannot be easily accounted for on a company’s financial statements. However, a recognizable brand name can still create significant value for a company. Investing in the quality of the product and a creative marketing plan can have a positive impact on the brand’s equity and the company’s overall viability.
Why are important the cultural values and loyalty?
Brands not only convey an image to customers, they often affect on the image of your customers in society. The intangible value customers derive from owning or using your brand and as a brand add values it allows you to get high prices from your products.
One of the most valuable intangible benefits of a strong brand is customer’s loyalty. Loyalty exists when a customer is oblivious to competitor offerings and willing to buy from you, to find your brand value. This results when your brand becomes synonymous with quality, service or responsible business practices among other values. Achieving high customer loyalty enhances your long-term prospects and profitability relations, since your name on a product or store immediately garners the attention.