What Is Equity Brand? Know Understanding And How To Build Positive Brand Equity

Illustration of building an equity brand (Photo: Pixabay/ravirocks010)

YOGYAKARTA Every business activist needs to build a brand equity so that consumers have confidence in the products or services offered. If a company has positive brand equity, consumers will choose products from the brand instead of other products, even at high prices. So what is brand equity? How to build a brand equity? Let's see the following explanation.

According to the Investopedia page, brand equity or trademark equity changes the value more owned by a company when compared to its competitors.

Companies that have succeeded in building brand equity will be easy to remember, easy to recognize, and superior in terms of quality.

In addition, generally consumers will be willing to pay for the company's products or services at high prices even though they can get the same thing from the competing brand.

For example, smartphone products issued by Apple have a higher price than brands that are competitors, such as Samsung. Xiaomi and other HP brands.

However, many consumers are willing to spend more to buy the latest products launched by Apple. In fact, the quality offered may not be much different from other brands.

This shows that Apple managed to build its equity brand very well.

Quoted from Shopify, the value of brand equity is determined by consumer perceptions and experiences of the brand.

If brands can't provide an interesting experience for their consumers consistently, they will have low brand threads. Vice versa.

It has been mentioned above that an equity brand was born from the consumer experience of a brand. Therefore, it takes a long process to get a positive brand equity.

Here's how to build an equity brand that business activists must know:

1. Improve brand awareness

The first way to build an equity brand is to increase the brand awareness of brands.

Before owning an equity brand, companies need to ensure that consumers recognize brand identities when they are looking for the goods or services needed.

Well, to improve brand awareness, there are several things business activists can do, such as:

2. Communicate the vision and mission brand

The next way to build an equity brand is to communicate the brand's vision and mission.

According to Qualtrics, car aini is very effective at increasing a good perception of a brand.

To communicate the vision and mission of brands, companies need to explain the benefits and solutions their products offer customers.

In this way, consumers or customers will be more interested in prioritizing corporate brands than competitors.

3. Trial to target market

In addition to communicating the brand's vision and mission, the company must also conduct product trials to get a high equity brand.

This step is needed so that companies can filter out the problems and solutions needed by their target market. In addition, companies can get feedback related to product shortages and excesses.

This stage can increase customer loyalty and the company's customer base in the future.

4. Improve consumer experience

Cara membangun brand equity yang terakhir adalah meningkatkan pengalaman pelanggan (customes experience).

The customer experience here includes many things, from consumer services to maintaining product quality after launch. This strategy is very effective in maintaining the quality of the equity brand.

That's the information about what brand equity is. Hopefully this article can add insight to the loyal readers of VOI.ID.