Vlog transcript:
Oh, marketing – simultaneously the most overrated and underrated sector of business… everyone thinks they can do it, but few do it well. And here I am again to talk some marketing fundamentals. Up this week?
Brand equity.
In a concrete sense, brand equity is the amount of money you can charge for your offering above and beyond what its generic equivalent would reap – basically, how much more does you slapping your logo on something allow you to charge for it? That’s brand equity.
Brand equity can result from many things – good past experiences with the product which develop trust, likability engendered by clever marketing campaigns, a halo effect from other products and services, a hip or cool factor.
And there can be negative equity. Not to throw her under the bus, but about a decade ago a survey indicated that more people avoided Demi Moore movies because she was in them, than attended because she was in them. This would be a marker for negative brand equity. It’s basically how boycotts work.
Building brand equity
First off, know it won’t happen overnight. But with creative ad campaigns, excellent customer service, a good returns policy, transparent reporting and consistent branding, people’s loyalty to and trust in you will grow. And when in doubt, you can always borrow some from someone else – think the ever-popular celebrity endorsement.
That’s it for this time. Strategist out.