These comprise of trademarks, patents, and channel partner relationships.
Proprietary brand assets contribute to brand equity because they prevent competitors from harming the business as well as enable a brand to maintain its loyal group of customers.
These assets protect the differentiating factors of a brand and enable the brand to maintain its brand image.
Importance of Brand Equity In Business and Marketing
Brand equity is immensely important philippines mobile number list to increase a company’s reputation, pricing, profit, marketing, sales, and ROI. Brand equity is the value of a brand with trust, value, and authority in the eyes of customers and investors. With increased reputation, marketing, sales, and profit margins can be maximized in the market.
Build Strong Brand Reputation: Brand equity is directly connected to the reputation of a company. Incremental brand equity builds brand reputation.
Maximize Marketing, Sales, Profit, and ROI: Higher brand equity increases the chances of conversions of marketing campaigns and sales calls. It maximizes the overall ROI of a business.
Enables premium pricing: A positive brand equity can help the company charge more for its product or services as compared to the actual market price.
Establish Assets: As discussed earlier, brand equity comprises intangible assets of the company (organization). These, similar to other assets, can be sold, leased, or licensed to others.
Increases market share: A well-defined and good brand equity increases customer loyalty and thus, results in customers opting for the brand over the others. This helps in increasing its market share.
Brand extensions: If a company has positive brand equity, it becomes easier for them to introduce new products or product lines into the market. For instance, Apple began with the Mac OS (Operating System). As the brand equity grew, it was easily able to convert its equity with iPhones.