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Brand Equity
Brand equity is the added value endowed to products and services, reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share, and profitability that the brand commands for the firm. Positioning is the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market. A good brand positioning helps guide marketing strategy by clarifying the brands essence and how it does so in a unique way. By positioning your product correctly it will create customer-focused value proposition (reason why target market should by the product), which is another way of creating brand equity for your product.
Brand equity needs to be measured in order to be managed well. In managing brand equity, marketers plan for brand reinforcement, revitalization, crisis, and competition. Competition stems from proper positioning; researching your opponents and know what they do well to attract their share of the market. A company should identify competitors by using both industry and market-based analyses. By understanding your competitors and becoming aware of new or other ways they satisfy the needs of your target market, you can better your own brand equity.
Marketers build brand equity by creating the right brand knowledge structures with the right consumers. This process depends on all brand-related contacts whether marketer initiated or not. This ties in with the market-nicher strategies of positioning your product. Choosing the right consumers means choosing the right niche or click of consumers who have a common demand or want for products and services.
By “positioning” your product correctly and managing it well enough so your target market repeats the purchase, you have established a good “brand equity” for yourself.