A brand is a name or a slogan that helps consumers to identify a product or service. A brand is created to differentiate one product or service from another. You build a brand when consumers start to use and trust the products or services behind the brand; little by little, or maybe at a fast pace, a brand can gain value and build equity; this value can be positive or negative. The challenge for marketers is building a strong positive brand by offering products or services aligned with consumers’ beliefs, opinions, feelings, needs, etc. Factors like consumer loyalty, brand familiarity or awareness, and quality perception define brand equity.
One important concept related to brand equity is Customer-Based Brand Equity (CBBE). “The basic premise of the CBBE concept is that the power of a brand lies in what customers have learned, felt, seen, and heard about the brand as a result of their experiences over time.” (Keller, Kevin Lane; Swaminathan, Vanitha. Strategic Brand Management (p. 38). Pearson Education.) You know a brand has positive CBBE growth when consumers are aware of the brand and have a positive image of it. I remember my grandmother saying a long time ago, I bought you a pair of “KEDS” for your birthday; she didn’t say a pair of sports shoes or sneakers. She said “KEDS” because a pair of sneakers are equivalent to the brand “KEDS.” The same when she used to mention “Oster” when she was talking about using her blender to make a cake mix. So these brands I mentioned have a positive CBBE, at least for my grandmom.
In the same order of ideas, Brand loyalty is so important that people buy certain products no matter how expensive these products are compared with other brands. And they buy it because they recognize the brand and perceive the quality of the product or service; in a few words, they have trust and are loyal to the brand.
Why are some brands more popular than others?
According to interbrand.com, the most popular brand in the world in 2022 was Apple, and not only that, in 2021, it was Apple too. Why does this brand be so popular? They sell more-less the same products as Microsoft, HP, or Samsung, but if you go to an Apple store, the stores are always full. In the meantime, Microsoft closed all its physical stores in 2020 during the covid-19 pandemic, but Apple kept all the physical stores open as of today.
I think one of the reasons a brand has more success than others is the “purpose” of the brand. Even though Apple sells computers and other tech consumer goods, and the products are pricey compared with other brands, people are attracted to the brand, recognize the brand, and want to buy their product no matter what. Apple consumer loyalty goes above and beyond; they don’t care about the high price their pay for a computer, smartphone or smartwatch, or even a headphone; they trust in the brand. Apple’s brand identity is directly proportional to its brand image. “Think Different” was their motto back in the early 2000s.
Even though they don’t use this motto anymore, they try to differentiate from other brands by taking care of every detail from packaging to the delivery of their products. They prioritize the consumer in everything they do. Tim Cook, CEO of Apple in 2019, said Apple’s mission statement is “to bring the best user experience to its customers through its innovative hardware, software, and services.” If you are an Apple product consumer, you know this statement is true; their products deliver what the mission statement is. Samsung, HP offers more-less the same products but Apple’s brand value is higher than theirs.
Apple’s brand, according to interbrand.com, has a value of 482,215 Million USD, which is around 73% more than the second more valuable brand in 2022 Microsoft, and 75% more than Amazon, the third brand from the top ten brands, and Samsung has about 550% less brand value in position number five. So Apple is doing something different to achieve this incredible value; as I mentioned before, they cover every detail of the customer journey and make their products unique in style, usability, reliability, and durability compared with other brands,at least this is the perception many users have about this prestigious brand.
Building brand equity
Building positive brand equity is a long-term goal; you must invest more than 60% of your advertising budget in brand awareness to build your brand; this is the only way to create consumer brand association and familiarity with the brand; the more they see, hear, dream and think about your brand the more consumers will memorize the brand, and of course, they will continue down the funnel. You will be able to close sales.
Repetition increases consumers’ chances of recognizing your logo, symbols, and packaging; in other words, “brand awareness” advertising campaigns are the first step to building brand equity. This top-of-the-funnel campaign can bring a substantial amount of customers. With proper attribution and a good remarketing campaign, you will increase brand recognition and contribute to lead-generation efforts.
Brand equity vs. Brand value
Brand equity and brand value are similar but are not the same. Brand equity is related to the brand’s value for consumers, and brand equity can be positive or negative. If a consumer prefers to pay less for a product from another brand, your brand has negative equity. On the other hand, brand value is the financial value or the brand’s worth in the market. Brand equity and value are very important KPIs and can help make decisions like changing your marketing communications, campaigns, tactics, or strategies.
In conclusion, branding marketing strategies are important. Top-of-the-funnel strategies is crucial to building a brand. A strong brand can help a company retain its market share or increase it; however, a weak brand can make a business disappear.
