How can brands increase brand equity?
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Consensus Meter
Strategies to Increase Brand Equity
Importance of Marketing Mix Elements
High Advertising Spending and Distribution Intensity
One of the most effective ways to increase brand equity is through high advertising spending. Research indicates that brands with higher advertising budgets tend to have significantly higher levels of brand equity. This is because consistent and substantial advertising helps in building brand awareness and strong brand associations, which are critical components of brand equity . Additionally, high distribution intensity ensures that the product is widely available, further enhancing brand visibility and accessibility, which contributes positively to brand equity.
Price Strategy and Store Image
Maintaining a high price point can also positively impact brand equity. A higher price often signals superior quality to consumers, thereby enhancing perceived quality, which is a key dimension of brand equity. Moreover, a good store image where the product is sold can reinforce positive brand associations and perceived quality, further boosting brand equity.
Customer-Based Brand Equity
Brand Awareness and Brand Image
Customer-based brand equity is fundamentally about how well consumers know the brand and the positive associations they hold. Brand awareness and brand image are crucial here. When consumers are familiar with a brand and associate it with favorable, strong, and unique attributes, the brand enjoys higher equity. This familiarity and positive perception lead to more favorable consumer responses to marketing efforts.
Loyalty and Trust
Building customer loyalty is another critical factor. Loyal customers are more likely to repurchase and recommend the brand, which enhances overall brand equity. Trust and affective commitment also play significant roles, although their impact is often mediated by loyalty. In essence, a brand that can foster trust and emotional connections with its customers will see a direct positive impact on its brand equity.
Leveraging Social Media
Social Media Marketing
In the modern digital landscape, social media marketing has become a pivotal strategy for enhancing brand equity. Social media platforms allow brands to engage with customers directly, creating a sense of community and fostering stronger brand associations. Effective social media strategies can significantly boost brand awareness and loyalty, thereby increasing brand equity.
Psychological and Social Drivers
The psychological and social drivers of social media equity include factors such as social influence and social capital. Brands that successfully leverage these drivers can enhance their perceived value and strengthen their brand equity. This involves creating content that resonates with the audience and encourages social sharing and engagement.
Brand Collaboration
Shared Brand Equity
Collaborative efforts such as sponsorships, celebrity endorsements, and co-branding can also enhance brand equity. These collaborations create a shared brand equity where the positive attributes of one brand can transfer to another, thereby enhancing the overall brand value. This strategy leverages the associative networks in consumers' minds, making the brand more memorable and positively perceived.
Conclusion
Increasing brand equity involves a multifaceted approach that includes high advertising spending, strategic pricing, maintaining a good store image, and ensuring high distribution intensity. Building strong customer-based brand equity through brand awareness, positive brand associations, loyalty, and trust is also crucial. Additionally, leveraging social media and engaging in brand collaborations can further enhance brand equity. By focusing on these strategies, brands can significantly improve their perceived value and achieve long-term success.
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