Managing brand equity

Managing brand equity is the process of managing the value of a brand to ensure it remains both relevant and profitable. It requires understanding the core values of the brand, its target market, and the various touch points where customers interact with the brand. It then involves using various marketing techniques and strategies to ensure the brand remains attractive and relevant to the target market. This includes product and service delivery, pricing, distribution, advertising, and other elements of the marketing mix. Managing brand equity also involves monitoring customer feedback and adjusting the brand strategy accordingly.

Example of managing brand equity

• Apple is a great example of managing brand equity. Apple has managed to cultivate a loyal customer base over the years through its innovative marketing strategies and product design. Apple has invested heavily in its branding, creating a strong identity for itself through its iconic logo, product design, packaging, and advertising. The company has also focused on its customer service, creating a helpful and friendly customer experience. Apple has also embraced technology, allowing customers to easily access their products and services through its website and mobile apps. These strategies have helped to ensure that Apple is seen as a modern, reliable brand that its customers can trust.
• Starbucks is another example of managing brand equity. The company has invested heavily in its branding, creating a recognizable logo and iconic store design. Starbucks has also focused on its customer service, creating a welcoming atmosphere in its stores and providing helpful baristas. The company has also embraced technology, allowing customers to pay for their drinks and order ahead using their mobile app. These strategies have helped to ensure that Starbucks is seen as a reliable and trustworthy brand that customers can count on.
• Nike is also a great example of managing brand equity. Nike has invested heavily in its branding, creating a recognizable logo and iconic product design. The company has also focused on its customer service, providing helpful customer service both in stores and online. Nike has also embraced technology, allowing customers to easily purchase products online and track their orders. These strategies have helped to ensure that Nike is seen as a modern, reliable brand that customers can trust.

When to manage brand equity

Managing brand equity is a critical part of any successful business. It involves making sure the value of a brand is maintained and that it remains both relevant and profitable. In order to do this effectively, there are several applications of managing brand equity that can be used:

• Developing an understanding of the brand’s core values, target market, and various touch points. This involves researching the brand’s history, customer feedback, and other data to gain insight into the brand’s identity and its target market.
• Utilizing various marketing techniques and strategies to ensure the brand remains attractive and relevant to the target market. This includes product and service delivery, pricing, distribution, advertising, and other elements of the marketing mix.
• Monitoring customer feedback and adjusting the brand strategy accordingly. This involves collecting customer feedback from various sources such as surveys, focus groups, and social media, and using it to make changes to the brand’s strategy.
• Evaluating the effectiveness of the brand’s strategy. This involves assessing the brand’s performance in terms of sales, market share, customer loyalty, and other metrics to determine if the brand’s strategy is working.

Types of managing brand equity

There are several types of managing brand equity, each of which is important for achieving a successful brand strategy. These include:

• Brand Positioning: This involves determining where the brand stands in relation to competitors, and how it can create a unique identity to stand out in the market. It includes developing a unique value proposition and creating a brand image that resonates with customers.
• Brand Awareness: This involves increasing the visibility of the brand and making sure it is seen and remembered by potential customers. This includes using various marketing channels, such as advertising, PR, and social media, to reach the target audience.
• Brand Loyalty: This involves creating a relationship with customers and providing them with incentives to remain loyal to the brand. This includes providing discounts, customer loyalty programs, and other loyalty initiatives.
• Brand Experience: This involves creating a positive experience with the brand, from product packaging and customer service to the overall customer journey. This ensures customers have a pleasant experience with the brand, which increases loyalty and brand awareness.
• Brand Management: This involves monitoring customer feedback, analyzing customer data, and making adjustments to the brand's positioning and strategy as needed. This includes understanding customer needs, developing strategies to meet those needs, and monitoring the brand's performance.

Steps of managing brand equity

Managing brand equity is an important part of any successful marketing strategy. To ensure a brand remains relevant and profitable, it is important to understand its core values and customer touch points, as well as employ various marketing techniques. The following steps outline the process of managing brand equity:

• Understand the brand: This involves researching the core values of the brand, its target market, and the various touch points where customers interact with the brand.
• Develop a brand strategy: This involves creating a comprehensive brand strategy that outlines the goals and objectives of the brand and how it will be presented to the target market.
• Implement the plan: This includes implementing the various elements of the brand strategy, such as product and service delivery, pricing, distribution, and advertising.
• Monitor customer feedback: It is important to consistently monitor customer feedback to ensure the brand is meeting customer needs and delivering on its promises.
• Adjust strategy as needed: As customer needs and preferences evolve, it is important to adjust the brand strategy accordingly to ensure the brand remains relevant and profitable.

Advantages of managing brand equity

Managing brand equity has many advantages, including:

• Increased customer loyalty and satisfaction, as customers are more likely to remain loyal to a well-managed brand.
• Improved market share and profitability, as customers are more likely to purchase from a brand they recognize and trust.
• Enhanced brand recognition and recall, as customers are more likely to remember and recognize a brand that has been managed well.
• Improved customer service, as customers are more likely to have a favorable experience when interacting with a brand that is well-managed.
• Increased brand value and equity, as customers are more likely to pay a premium for a brand that is well-managed.
• Increased customer engagement, as customers are more likely to actively engage with a well-managed brand.

Limitations of managing brand equity

The limitations of managing brand equity include:

• Difficulty in accurately measuring the value of the brand. This is because it is difficult to accurately quantify the intangible value associated with a brand and its perception in the minds of customers.
• Difficulty in maintaining consistency across different markets and regions. Due to differences in culture, language, and other factors, it can be difficult to ensure consistency across different markets.
• Difficulty in keeping up with changing trends. As trends evolve, a brand must remain relevant and adjust its strategy accordingly. This can be challenging as it requires resources and expertise.
• Risk of over-branding. If a brand is overexposed, it can become diluted or even lose its value. It is important to maintain a balance between brand visibility and saturation.
• Increasing competition. As competition in the market intensifies, managing brand equity becomes even more challenging. It requires constantly innovating and finding ways to stand out from the competition.

Managing brand equity — recommended articles

Role of marketing — Building strong brands — Management of brand — Development of brand — Brand value chain — Principles of marketing — App marketing strategies — Customer value creation — Market orientation

References

• Aaker, D. A. (2009). Managing brand equity. simon and schuster.
• Farquhar, P. H. (1989). Managing brand equity. Marketing research, 1(3).