Building Brand Equity
Brand equity is built through a combination of the marketing mix factors over time. The development of brand equity should NOT rely on promotional expenditure alone.
In fact, some brands (such as Apple and Starbucks) have built strong brand equity with a relatively modest level of promotional support. This is because other marketing mix elements, such as product quality and range, are also very important when enhancing brand equity.
How to Build Brand Equity
Below is a checklist of factors that will be beneficial in building brand equity.
- Good product quality relative to competitive offerings
- Offer a wide array of products to cater to different customer needs and preferences
- Valuable differentiation in products
- Clearly defined unique selling proposition
- Positioning your brand as a unique choice
- Having unique product features
- Continuously innovate to add unique features
- Frequent technology breakthroughs
- Frequent new products
- Continuous customer engagement
- TV advertising is a key platform for strong brands, particularly in the FMCG’s sector
- Publicity and media attention
- Attention from blogs, forums and online comparison sites
- Successful social media campaigns and engagement
- Viral videos
- Word-of-mouth (WOM) – either online or face-to-face
- Influencer marketing
- Use of celebrities in advertising or celebrities using the product
- Product placement in TV shows and movies
- A high profile CEO is another way to help build brand equity, as they re recognizable and more likely to gain media attention
- Highly trained and interpersonal, friendly staff
- The number of retail channels used – the more outlets, the more visible the product
- The retailer’s brand equity – there will be a brand association coming from the retailers and their brand equity will transfer to the brands that they sell
- The brand’s prominence within the retailer – is it in main store locations and displays?
- A positioning strategy built around price value
- Develop partnerships or co-branding opportunities with other reputable brands
- Increase product visibility through advertising, presence in multiple retail locations, and online platforms.
- Utilize social media platforms to engage with customers
- Create a community around your brand
- Position your product as a status symbol or luxury item if appropriate
- Offer products that not only serve a functional purpose but also contribute to the customer’s self-identity or provide entertainment value. This emotional connection can strengthen brand loyalty
- Aim to increase market share as it often correlates with brand strength. A popular brand is perceived as a trusted choice
- Cultivate a reputation for integrity through honest marketing, quality products, and ethical business practices. Customer trust significantly boosts brand equity.
- Ensure your staff provides exceptional customer service and knowledgeable sales advice. Positive customer experiences directly impact brand perception
- Tailored marketing strategies to these segments can lead to a stronger connection with your audience
- Expanding market coverage, including global reach, can enhance brand prestige and recognition. A globally recognized brand often holds high equity
- The longer a brand has been in the market, the more it can build on its heritage and establish trust. Longevity can be a sign of reliability and quality.
- Engage in socially responsible practices. Brands that demonstrate a commitment to social causes often build emotional connections with their audience.
- Employees should embody the brand values in their interactions with customers. Positive employee behavior can reinforce brand values and improve customer experiences
- Providing excellent after-sales support, including customer service, warranties, and easy returns, enhances brand loyalty and trust
- Develop and share a compelling brand story that resonates with customers, enhancing emotional connection and brand identity
- Implement loyalty programs that reward repeat customers, encouraging continued engagement and enhancing perceived value
- Ensure consistent brand messaging across all marketing channels to reinforce brand identity and message
- Offer customizable products or services to cater to individual customer needs, enhancing perceived value and differentiation
- Engage in strategic sponsorships and partnerships that align with the brand’s values and target audience
- Utilize AR and VR to offer unique and immersive product experiences, showcasing innovation
- Develop an interactive and user-friendly website and mobile app, enhancing the customer experience and engagement
- Build online communities where customers can interact, share experiences, and offer support to each other, strengthening brand loyalty
- Implement effective Customer Relationship Management (CRM) systems to personalize customer interactions and improve service quality
- Develop a network of brand ambassadors who genuinely love and promote the brand, enhancing credibility and reach.
- Aim to achieve quality certifications and awards, which can be used to enhance brand credibility and trustworthiness
- Actively participate in community events and charitable activities, building a positive brand image and demonstrating corporate social responsibility
- Continuously update and improve products based on customer feedback and market trends to stay relevant and competitive
- Leverage big data analytics to gain insights into customer behavior and preferences, guiding strategic decisions
- Have a solid crisis management plan to protect brand reputation in the event of any negative occurrences
- Create high-quality, informative content that provides value to your audience, establishing your brand as a thought leader in the industry
- Target niche markets with specific needs to create a strong and loyal customer base
- Offer support and marketing materials in multiple languages to cater to a diverse customer base, enhancing global appeal
- Host and participate in both virtual and in-person events to increase brand visibility and engagement
- Consider a brand relaunch or rebranding to revitalize the brand, especially if the market has significantly changed
- Encourage and showcase UGC, like customer reviews and testimonials, to enhance credibility and relatability
- Create memorable, hands-on experiences that allow customers to engage with the brand in a meaningful way
- Use innovative and attractive packaging designs that stand out and resonate with the brand identity.
- Create forums or panels where customers can discuss products and services, providing valuable insights and fostering community
- Align your brand with a specific archetype (like the Hero, the Rebel, etc.) to create a relatable personality and emotional connection
- Partner with micro-influencers who have a highly engaged audience relevant to your brand
- Employ creative, unconventional guerrilla marketing tactics to generate buzz and surprise elements
- Consider a subscription-based model for steady revenue and consistent customer engagement
- Share aspects of your company culture, such as team events or behind-the-scenes looks, to humanize the brand and create a deeper connection with customers.
