Consumer behavior experienced a seismic shift during the pandemic. Consequently, 75 percent of consumers in the U.S. are engaging in new shopping behaviors due to store closings, changing priorities, and even economic pressure.
A Vox Media report from May 2020 indicated that nine out of ten buyers tried a new brand during the pandemic. Moreover, nearly three-fourths (73%) of consumers that did try new brands will continue to incorporate those new purchases into their routine. Due to this shift, brand equity is more valuable than ever before.
Marketers need a seat at the table during a discussion around brand equity, as there are several ways effective marketing techniques can positively impact brand equity. Here’s what marketers need to know about building brand equity.
What Is Brand Equity?
Brand equity refers to the value that a brand has due to the consumer’s perceptions of it and the experiences they’ve had with the brand. For instance, if you go shopping for toothpaste and select Crest (which you’ve been using for years) instead of the store brand, brand equity explains why.
When consumers think highly of a brand due to personal experiences or strong associations with the brand’s values, the company has positive brand equity. In contrast, if a brand routinely disappoints consumers, it could have negative brand equity.
Why Is Brand Equity Valuable?
It’s impossible to put a monetary value on its brand equity. However, it allows a brand to charge price premiums, but it could also help establish loyalty and connection with consumers. Furthermore, trust is critical for today’s conscientious consumers.
Almost 80% indicate that they will not buy products from a brand they do not trust. In addition, approximately 90% will intend to disengage with a company that breaks their trust. Think of brand equity as a way for your brand to create a deeper connection and level of trust with consumers. People trust familiar, and trust is essential for loyalty.
Brand equity is also helpful because it can tangibly impact a business’ reputation and sales. Therefore, companies should take stock of their corporate image, analyze their consumer perceptions, and be sure to communicate values to consumers through marketing campaigns.
How Can Companies Build Brand Equity?
Brand equity is flexible and can evolve due to consumers’ experiences with the company. First, it starts with brand awareness. Often, this begins with advertising. Then, there’s recognition—when consumers notice the brand in a store or on an e-commerce platform. Then, consumers try the brand.
If they have a positive experience, it could become their preferred choice. This is known as preference. Lastly, when consumers have a series of positive experiences with a brand, they could recommend others to use it and become loyal. Because of this positive association, any other product connected to the brand will benefit from the strong association with the original experience/product.
Experiential Marketing Can Help Your Company Enhance Brand Equity
Companies looking to enhance brand equity could utilize experiential marketing to create a positive association and stay top-of-mind for consumers. Experiential marketing allows brands to form a connection with consumers; it demonstrates to consumers that they are the central focus of the brand.
Brand activations also offer the opportunity to deliver an experience that aligns with the brand. These experiences can benefit both consumers and the brand, as there is an increased chance consumers will recommend a product to their friends once they’ve had a positive experience. Think of experiential marketing as the opportunity to create that positive association for consumers.
Contact Our Brand Activation Agency Today To Learn More About How Experiential Marketing Can Build Brand Equity
If your brand is looking to build positive brand equity, reach out to Inspira Marketing Group to learn how our brand experience and activation agency can help increase positive associations with your company.
SOURCES:
Emphasise on branding in marketing campaigns to build positive brand equity | YouGov
How can you influence consumer perceptions to build brand equity? | Kantar
What is Brand Equity? Definition and Importance | Marketing Evolution
Vox Media research shows 9 out of 10 consumers have tried new brands during the pandemic | Vox Media
The great consumer shift: Ten charts that show how U.S. shopping behavior is changing | McKinsey
What is Brand Equity? | The Branding Journal
Brand Equity Definition - What is Brand Equity | Shopify
Our Brains Trust Brands The Same Way We Trust Our Friends | Fast Company
