What is Brand Equity and how to use it in Digital Marketing – WAU
Anyone who knows the business world knows that it is not just money that makes a successful company. There are many examples of projects with resources to spare that have failed to sustain themselves in the market. What is the reason for this? In many cases, the main cause of failure is the lack of attention to brand equity. […]
Anyone who knows the business world knows that it is not just money that makes a successful company. There are many examples of projects with resources to spare that have failed to sustain themselves in the market.
What is the reason for this? In many cases, the main cause of failure is the lack of attention to brand equity.
On the other hand, companies that invest heavily in this have obtained increasingly expressive results, year after year.
But, what is brand equity, after all? What’s more, how to use it in digital marketing?
See everything you need to know to strengthen your brand and see it translate into profits!
Learn all about Digital Marketing
This comprehensive guide will teach you everything about digital marketing and how to apply it.
What is brand equity, after all?
The term brand equity can be translated in a simple way as brand value, because that is exactly what it represents. But then another question arises: how to measure the value of a brand?
Because it is something intangible – different from the value of a company’s physical assets – the value of a brand follows several abstract evaluation criteria.
In the end, it’s not just about having an easily recognized identity. After all, there are many examples of brands that are negatively recognized.
What matters is how customers view the brand, because it is this perception that will make the biggest difference in profits and in the valuation of the company as a whole.
Since branding has the role of strengthening the brand, we can say that the good work of branding generates brand equity.
In other words, the stronger the company’s image, the greater its market value.
The importance of brand strength
Does it make that much difference to have a strong brand in the market? Surely! Brand equity greatly affects a company’s ability to profit and remain relevant to consumers.
There are at least 3 important factors that are impacted by brand equity:
Power of influence in the market
It is a fact that the strongest brands are the ones that dictate the pace of the market. And when it comes to the market, it’s not just about consumers.
This also involves competitors, distributors, partners, press vehicles and, in general, everyone who has a stake in the company’s business.
Whether deciding the launch date of a product, the best form of distribution, prices or even the marketing strategy, these are the strongest brands that lead and gain preference.
This, of course, gives them a huge advantage over competitors, and greatly increases the chances of success with customers.
Perception of customer value
In addition to the power of influence, we can mention, in a more specific way, the great effect that brand equity ends up having on the perception of customers’ value.
The stronger the brand, the greater the value the customer will give it. But, what does this mean in practice?
In some cases, the company may charge more for products that in some ways are similar – or even inferior – to those of the competition, and still have the preference of customers.
In addition, the greater prestige with the public will be reflected in a high degree of confidence in the work done, giving the company more space to innovate and to make important strategic decisions.
One of the greatest assets that a brand can have is customer loyalty, and this certainly happens to those who dedicate themselves to brand equity.
This loyalty starts with the return of the customer, who over time becomes a defender, interacting in the brand’s communication channels and recommending the product or service to others.
It doesn’t even take much effort to understand that this represents a much higher profit, does it not?
After all, in addition to bringing new customers organically and free of charge, brand advocates tend to have a higher average ticket.
Practical examples of brand equity in action
So that you can better understand the role of brand equity for a company, let’s consider just two examples of it. Look:
Apple is one of the biggest symbols of how much the power of a brand makes a difference in each of the aspects we mentioned above.
The brand differs from the others in every detail, starting with the product names: No notebooks, tablets or smartphones, Apple sells macbooks, iPads and iPhones!
In addition, by comparing the specifications of your devices with competitors, Apple doesn’t always win.
Even so, its products – which cost a lot more – remain among the best-selling and desired products on the market.
Another detail is that the market value of Apple products hardly falls, even after being out of date for years. All this because the brand is one of the most valuable in the world!
Dudalina is one of the most famous and desired brands in London fashion today, thanks to the work of branding and enhancing the products that the company has been making.
Through this work, Dudalina’s shirts left Santa Catarina for London and are now spread in stores all over the world.
In addition, the brand is one of the most pirated in London, so looking for highly detailed items, which have become synonymous with luxury and sophistication.
Does Dudalina have an aggressive online direct selling strategy? No, but it has a correct positioning, focusing on the niche it seeks to serve.
Although the companies mentioned sell more expensive products, this is just a demonstration of what brand equity can do, and in no way excludes companies that deal with cheaper items.
Especially because thinking that the role of brand equity is to increase the price of products is a big mistake.
Proof of this is that some of the most valuable brands in the world are cheap and extremely popular products.
The ultimate goal is make the brand seen by others as it is seen internally, and that stands out in that. As well?
If the idea is to sell premium products, the public needs to see the brand as premium. If the aim is in the masses, it must be seen as accessible.
Brand equity in digital marketing
Can you imagine a strong brand that has no digital presence today? Therefore, digital marketing is indispensable for good brand equity.
So, be aware of the following aspects that will make your brand stronger in the virtual world:
The right message
Every self-respecting brand needs to send a strong message and create an identification with the public.
Thus, discovering the right message in your case is the first step in developing a close relationship with your audience and strengthening your brand.
This requires the elaboration of a content marketing plan, in order to establish an adequate line of communication, which is relevant and interesting for the people that the company wants to attract.
You may also be interested in these contents!
Digital Branding: how to brand in the era of Digital Marketing
What is Brand Voice and a step by step on how to create it
Choice of channels
After discovering the best message and preparing a content plan to convey it, it is important to choose the channels in which the brand will be present.
The idea that you need to be on all social networks to be successful online is a big myth. It is important to go where your audience is, that is, use the social networks they use.
In addition, the corporate blog is the best channel for maintaining your content collection and strengthening the relationship with personas.
Voice and tone of conversation
Many companies fail to create a strong image before the public, even if they seriously invest in the production and distribution of content through popular channels. Why?
Because a fundamental element is the way that this conversation with the audience is conducted. In other words, the voice and tone must be carefully thought out to elicit positive reactions.
Imagine a personal conversation. Nobody would like to talk to someone who changes their mood suddenly, don’t you agree?
Similarly, the brand needs to be consistent in the way it communicates so as not to end up scaring the fans.
Another essential point is the frequency with which the content is presented to the public. Producing material every six months is not enough to build public loyalty and create a positive brand idea.
It is necessary to be regular and have a continuous production, which feeds the interest of this audience and allows them to approach the brand every day to learn more.
By regularly presenting a strong and coherent message on well-chosen channels, your brand will be able to use all the power of digital marketing to become the first choice of potential customers.
Investing in brand equity is vitally important to transform a common business into a market power. If you plan well and make good use of digital marketing are all your company needs to open the pot of gold that only big brands can achieve.
Another quality of great brands is to emotionally involve the public around specific values and themes. Want to know more about it? Understand what emotional design is and what your role in marketing is!