REQUIREMENTS:

1. READ THE BELOW ARTICLE AND WRITE A CASE STUDY ABOUT WHY BRAND EQUITY IS IMPORTANT FOR BRAND MANAGEMENT.

2. WRITE REFERENCES FOR THE BELOW ARTICLE

many reasons why brand equity is important for brand management. First, brand equity represents the value of a brand. It captures the financial worth of a brand and its ability to generate future revenue. Brand equity is important because it allows a company to charge a premium price for its products and services, which in turn increases profits. Additionally, brand equity can help a company to weather difficult economic times by providing a buffer against price cuts and other competitive pressures. Strong brand equity also confers several other advantages. It can help to build customer loyalty, making it easier to retain customers during periods of economic turmoil. It can also attract new customers, as people are often willing to pay more for products and services from brands they trust. Brand equity can also help a company to expand into new markets and product categories. There are several ways to measure brand equity. One common approach is to look at the brands mind share that is, the percentage of people who think of a particular brand when they are asked to name a type of product or service. Another approach is to measure the brands market share the percentage of sales of a particular product or service that is attributable to the brand. There are many ways to make brand equity. One is to create a strong and unique brand identity. This can be done through branding strategies such as the use of a distinctive logo, color scheme, and tagline. Another approach is to create positive associations in the minds of consumers, through advertising and public relations campaigns that highlight the brands positive attributes. Creating strong brand equity is important for any company, but it is especially important for companies that are looking to grow and expand their operations. Brand equity can provide the financial foundation needed to support these expansion efforts. Additionally, strong brand equity can help a company to attract and retain the best talent, as employees are often more attracted to companies with strong brands. Brand equity is the worth of having a recognizable and well-recognized brand as well as the level of influence a brand name has over consumers' minds. Companies build brand equity by offering customers satisfying experiences that encourage them to stick with them instead of switching to competitors who offer comparable goods. Brand equity is typically developed through awareness-raising initiatives that speak to the values of the target consumer, fulfilling promises and qualifications when customers use the product, and loyalty and retention initiatives. The components that create strong brand equity Understanding the components of brand equity is necessary before measuring and managing it. As I've already established, brand equity is the value that comes with having a well-known and trustworthy brand name. Therefore, you should think about the aspects of your brand that help it become a recognizable and trustworthy one. The following are some of the most significant factors in brand equity for brand management: Brand Awareness The most crucial determinant of brand equity is brand awareness. Understandably, brand equity and brand awareness are sometimes confused. These two ideas are different but have a close relationship. Brand awareness measures how well-known your company is among consumers. The value that your products have in addition as a result of your brand.

Perceived Excellence Customers' opinions on the product have a big impact on their decision to buy. Brand equity will increase if customers view your goods favorably and identify them as being of "good quality." Additionally, clients will be more likely to pay extra for a product they believe to be of good quality, enabling you to charge a premium. Company affiliation Brand equity is also influenced by brand association, also known as the qualities that consumers associate with your brand. These associations aid consumers in recognizing your brand and setting it apart from rivals. After all, it makes it much easier to remember things if you can mentally link them to something else. brand fidelity Building brand equity critically depends on establishing loyalty. The possibility that a customer will switch to another brand declines as they grow more devoted to yours. Brand loyalty shows that you value your brand and raise its worth. Why is it important? For businesses, brand equity can have real, measurable worth. Positivity in brand equity gives your business a significant competitive edge. Customers may be willing to pay more for your brand than competitors' brands in addition to choosing it over the competition. Positive brand equity will allow you to Increase our market share You'll generate more sales and income because of the competitive advantage that comes with strong brand equity. Confidently launch new product lines. Customers are more likely to try new products you release when they are familiar with and confident in your brand. Gain recognition in your field - Positive brand equity means that a company is respected both by its customers and by other businesses in its sector. The benefits it can have on ROI are a significant advantage of building strong brand equity. Businesses that effectively use branding frequently outperform their rivals in terms of revenue while spending less overall, whether on marketing, production, or other expenses. For instance, strong brand equity helps companies to demand higher prices. Customers will pay more to buy from a brand when they respect the principles it upholds and the caliber of the goods it produces. Additionally, marketing new product offerings under the same umbrella brand will accelerate the growth of the new product because trust has already been built. This is crucial because an increasing percentage of customers, about 80%, are now refusing to do business with or purchase from a company they don't trust, and almost 90% of consumers say they'll stop doing business with a company that betrays their trust. It aids in raising brand awareness. It takes work to develop brand awareness. There is a good reason why the top brands invest millions of dollars in getting their identities in front of consumers. Customers are more likely to make purchases from a brand they are familiar with. The products sold under the brand's name are worth more simply because it is well-known. Gaining awareness allows you to become more visible and familiar, which acts as an anchor for other favorable associations

It increases the perceived value and builds brand associations. What comes to mind when you hear the names Apple or Herms? That illustrates how brand associations work. It happens when clients develop strong associations with certain firm characteristics. An attempt to associate a brand with positive qualities, such as "premium," "quality," "luxury," and so forth. Positive brands have a better chance of dominating the market by giving consumers more reasons to purchase them. The perceived value is still another crucial element. Brand equity contributes to the development of associations between a product's perceived advantages and disadvantages. No one disputes the cost of Herms products as a result. People assume the brand must be nice when they see it. They are willing to spend a high price for a Birkin bag because of this. It fosters client relationships by encouraging brand loyalty. Every marketer would concur that it is much less expensive to retain an existing customer than to find new ones. Businesses that actively work to foster loyal client connections and increase brand awareness over time reap significant financial rewards. People will spend more money on a brand they trust. Additionally, if the company has done a really good job, customers may purchase products they weren't even aware they required. Brands benefit greatly from customer loyalty because it not only boosts the brand's value and gives them a significant competitive advantage, but also lowers marketing expenses. The increased value a brand name has on a product is known as brand equity. It is the value that people attribute to a well-known brand name. Brand equity is the idea that successful brands are more well-known and trusted than their rivals, not necessarily because their products are superior. Consider a buyer choosing between Brand A and Brand B when shopping for milk. Only the brand name distinguishes them; both provide the same milk product. Brand A costs $1 more than Brand B this consumer is familiar with Brand A and B and has used them successfully in the past, and their family and friends also use them it. This customer is not familiar with Brand B. Even though Brand A's milk costs more, the client still buys it. In this case, Brand A has strong brand equity because the brand name was important to the customer, they preferred Brand A's product to Brand B's. Given that the customer paid an additional $1 for Brand A, the added value (or price premium) in this instance would be $1. A REAL-WORLD EXAMPLE OR EVIDENCE OF WHY BRAND EQUITY IS IMPORTANT FOR BRAND MANAGEMENT A general example of a situation where brand equity is important for brand management is when a company wants to expand its product line. If the brand's equity is positive, the company can increase the likelihood that customers might buy its new product by associating the new product with an existing, successful brand. For example, if Campbell's releases a new soup, the company is likely to keep it under the same brand name rather than invent a new brand. The positive associations that customers already have with Campbell's make the new product more enticing than if the soup has an unfamiliar brand name. Below are some other examples of brand equity. CONCLUSION Brand equity is vital to any modern business. Build a positive perception of your company among consumers, and its far easier to be successful. Customers will keep coming back for more and recommend you far and wide. Develop negative brand equity, and its tough to recover. Companies with unfavorable reps have to work twice as hard to win customers rounds. However, consumers are willing to pay more for a recognized label. As an example, consumers may place a higher value on designer footwear than they would on footwear from a less well- known or generic brand. In addition to saving money on ads, a higher public profile is a welcome side effect. Customers are more likely to buy the company's goods than those of competitors if they have a solid reputation. The result is less money spent on advertisements, which boosts sales when a new product is introduced. There is no denying the benefits of building brand equity, but doing so takes time, energy, and dedication. Identifying the brand's unique qualities and the audience's core values and demands is the first step. After a company has been founded, it needs to work to raise its profile to draw in new clients and keep existing ones. Last but not least, brand equity is crucial in brand management since it has a direct bearing on profits. In contrast to unfamiliar brands, those with which consumers are already familiar are more inclined to purchase the manufacturer's offerings, regardless of price. Seasonal allergy sufferers, for instance, could rate Claritin higher than Loratadine. Claritin and the generic store version share nearly similar active components; however, some people still choose Claritin because they believe it works better. Management, since it has a direct bearing on profits. In contrast to unfamiliar brands, those with which consumers are already familiar are more inclined to purchase the manufacturer's offerings, regardless of price. Seasonal allergy sufferers, for instance, could rate Claritin higher than Loratadine. Claritin and the generic store version share nearly similar active components; however, some people still choose Claritin because they believe it works better. Thank you for your amazing lectures. Your classes have taught me a great deal!