Brand3 Team

What's Your Brand Worth?

B3 Marketing Service
February 17th 2017 . 10min read

4 Ways Brand Equity Benefits Your Company

Business owners often underestimate how important their brand’s value can be to their bottom line. You don’t have to look far to find examples of companies that have done an exceptional job positioning their brand. These companies reap major benefits of positive brand equity because they are able to deliver exceptional experiences to their customers that are completely in line with their brand promise.

  1. Decreased Marketing Costs: Companies with positive brand equity enjoy major brand awareness and customer loyalty. Therefore, there is no need to invest in major advertising or promotions and marketing budgets can be more strategically invested in more direct initiatives.
  2. Premium Prices: If your business has enough brand equity, you will be able to charge a premium price for your products or services. When it comes to valuable brands a price premium does not deter customers, rather it is expected.
  3. Higher Consumer Demand: Brand loyalty can stretch so far that the brand actually increases demand. Good brands create such emotional connections that there will be no adequate substitute for the brand in the consumer’s mind.
  4. Long-term Success: Valuable brands are positioned for long-term success because consumers are more likely to forgive bumps in the road. Positive brand equity can help your business overcome challenges far more easily than brands with no brand equity.

Your brand is defined by your customers’ perceptions and experiences with your company. So is your brand equity, which is essentially the outcome of brand loyalty, and increased market share.­­  Building and sustaining a brand that has equity takes time, patience and a great deal of effort, but it can produce a definite return of investment for years to come.

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