Brand Equity Pill

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Brand Equity: Objective

This pill aims to build a clear and practical understanding of Equity as a System by starting from its key component. We look at Awareness and its sub-dimensions (e.g., Top of Mind, Unaided, Aided, and Recall), before moving to Loyalty, Differentiation, and – finally – Esteem. We finally pause on Dos and Donts and provide a framework to optimize Equity in the long run. Being proactive in managing Equity is a necessary condition to build salient brands.

Pill Structure

  1. Definition and Examples
  2. Components: Awareness (TOM, Unaided, AIded, Recall), Differentiation, Loyalty, Esteem
  3. The Long Term Game and how to drive Equity

Brand Equity Why now?

A key benefit of building brand equity is the benefits it can have on returns on investments. Organizations that build better equity often earn more money than competitors, while spending less – whether on production, advertising, or elsewhere.  For example, brand equity is a prerequisite to charge premium pricing. When consumers believe in the values put forth by a brand and the quality of their products, they will pay a premium for their emotional bond. Additionally, stronger equity franchises have an ongoing trust relationship with their own customers and consumers. While trust needs to be nurtured – because it otherwise erodes in time – stronger brands are more likely to successfully introduce new products and services, because of their awareness and trust.


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