Brand Equity Write For Us
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Brand value is the value (positive or negative) that a product has acquired over time and from the brand itself. It is produced by the associations people make and their expectations about the company and its products.
It is a consequence of users’ experience, customers or not, about the product or the organization and how they perceive it. Brand Equity is intangible since its value cannot be measured materially.
Brand Equity gives customers or the target audience a reason to prefer the brand’s products over those of others.
Benefits of developing brand equity
Helps to increase market share
Brand equity development provides a competitive advantage in the market. When the customer can remember your brand at the point of sale, there are more opportunities for them to purchase your product. In some saturated industries, there is a need for increased brand recognition for the brand to stand out and appeal to customers through unique selling points or distinctive positioning.
It makes it possible to charge a premium price
The premium price, also called relative price, is the percentage difference between the price of a product and the reference price (a market average for a given product), whether higher or lower than the latter. With better brand equity, you can charge more for the development and increase your premium price percentage above the market average. It is an excellent general indicator to measure your product’s financial performance.
Allows for easy product line expansion
If brand equity is high, customers will likely follow your company and be the first to try your newest products or services. You can ask your customer community to try the products in the development stage or launch them directly to the market for them to buy.
The influence of your company is much greater
Thanks to the increased income and market dominance, you could be in a position of power. Its substantial brand value will allow you to form new alliances, obtain better prices on your supplies or negotiate with other major brands. It may lead to collaborations, business initiatives, or investment opportunities unavailable to other companies.
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