Definition of Brand equity:
A brands power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume and higher profit margins against competing brands.
When a company has positive brand equity, customers willingly pay a high price for its products, even though they could get the same thing from a competitor for less. Customers, in effect, pay a price premium to do business with a firm they know and admire. Because the company with brand equity does not incur a higher expense than its competitors to produce the product and bring it to market, the difference in price goes to margin. The firm's brand equity enables it to make a bigger profit on each sale.
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.
The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.
How to use Brand equity in a sentence?
- Your brand equity can be the most important thing in your business as it will ensure a good reliable customer base.
- They had a really good brand equity , which meant they would sell more due to the fact that they were well known and popular.
- We invested in brand equity as we are thinking for the long term with regards to our presence in the market.
- Tactical campaigns - doing sales promotions to generate short-term sales - shouldnt be used to replace great brand equity.
Meaning of Brand equity & Brand equity Definition