Last time, we introduced a Fancy Marketing Term: brand equity. Put simply, brand equity is the value of a brand.
Equity, shmequity. Who cares?
You should care! Here, I’ll give you a case in point.
Do you have a headache? Imagine yourself at the pharmacy, studying the pain relievers on the shelf, and then reaching for your preferred painkiller.
There probably isn't a significant difference between it and the generic, or the leading competitor. So what’s the deal?
You buy it because of the brand on the label.
You trust that brand. You've heard good things about it. Maybe it’s been around forever. Or maybe you bought it the first time because of snazzy packaging, or a sale, and you liked it so you keep buying it. In a world of too many choices, it’s automatic to stick with what works.
That reputation, that consumer loyalty, is valuable. It's an intangible asset to the business. It's equity.
If the company changed its name—its brand—that equity would be lost. So in a way, the brand is the most important part of a business.
It takes time
...for a newer company to build brand equity. Or even for an older company to change their equity from negative to positive. (Yes, a brand can have negative equity.)
But fear not, good reader! There are ways to jump-start the process.
Ingredients for the perfect branding pie
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