What is Brand Equity and How Do I Earn it?
In the Marketing world, there is always talk of Brand Awareness and Brand Equity. More often than not, Brand Awareness is a vague term used to convince a client that their marketing campaign didn’t fail. The truth is, however, that unless your “Brand Awareness” increased your Brand Equity, then you paid for nothing. So what is Brand Equity and how does your company increase or even measure it? Let’s break it down.
1.What is Brand Awareness?
You may think “Brand Awareness” is an easy-to-understand term, but in reality the word is misused all the time. Yes, “Brand Awareness” is a measure of how aware people are of your brand, but not in a general sense. Think about Hewlett Packard (HP) and Apple for a minute. You know both are technology companies and that is basic Brand Awareness. But real Brand Awareness is when people can understand what makes your company unique compared to your competition.
You know Apple makes expensive, high-end computers, phones, etc. This is an example of good Brand Awareness. Most people not only know what Apple makes, but they know what sets Apple apart from every other technology company. What about HP? Do they make expensive computers? Are they creative? Are they cheap? How is HP different from Lenovo or any other computer company? If you can’t answer these questions, it’s because HP does not have good Brand Awareness. People understand what industry the company is in, but can’t identify unique differentiators.
2.What is Brand Equity?