Digital Marketing

Brand Equity: How Can Brands Leverage it to Get Massive Sales?

As buyers, we rely on marketing messaging to help us decide which products to buy and why.

Brands need this snowball effect, generated via PR, advertising, and “social proof,” to stand out in a competitive market. In marketing, this alluring quality is referred to as “brand equity.”

Brand equity is a term that seems like just another marketing phrase, but it’s rather vital whether you’re attempting to establish or expand an existing brand or promote a new product. Learn the ins and outs of brand equity and why it matters in this article.

Brand equity is defined as.

Brand equity is to reap the benefits of having a highly regarded and well-recognized brand name. Brand equity is the value of a recognizable name, whereas brand loyalty is the degree to which consumers continue to purchase a product or service despite changes in price or quality; therefore, the two are similar but distinct concepts.

According to Wikipedia, this means:

The belief is that a company’s earnings will increase just due to the popularity of its brand.

A further note from Investopedia says:

“Brand equity” is “the value premium that a corporation obtains from a branded product over a generic one.”

The basic premise is that corporations may increase their profits from product sales without lowering prices or increasing discounts if customers see their items as better than those of lesser-known brands. They are saved from the ‘race to the bottom and elevated from commodity status due to this.

Since brand equity is seen as an asset in and of itself, a company with a strong brand will be more valuable than one with a weak brand.

The words of American business writer Stephen B. Shepard sum up the situation nicely:

“A strong brand is an agreement with consumers about the product’s quality, dependability, originality, and social responsibility. While ideas about brands may be abstract, brand equity is not.”

When thinking about a company’s success, why is it crucial to include brand equity?

Brand equity is essential, whether your goal is to increase sales volume at current pricing or to find new investors. It also affects the caliber of workers you can attract to your organization.

Here are three significant advantages of having a strong brand:

  • Massive Increase in Revenues

Brands provide consumers with a sense of security and confidence in a product or service by acting as a symbol of quality, a guarantee of what they can expect to receive, and a proclamation of values and principles with which they can identify.

Most buyers care deeply about these characteristics, at least when it comes to specific product types. Regarding health and beauty items, one survey indicated that 74% of women prefer to purchase brand names, while 69% of buyers believe laundry detergent must come from a well-known brand. According to our analysis, 55.5% of shoppers are prepared to pay extra for products from companies whose values they share.

The capacity to cut through the competition and retain customers is crucial to a company’s growth and survival, as is the ability to keep up with competitors that may enter the market in the future.

Companies with well-established brands have far less to worry about when releasing new products to the market (though success is never assured). Regarding distribution, having a well-known name can only help since retailers will be more willing to stock your shelves if they see demand for your product.

  • Enhanced Sales

You simply need to stroll through any supermarket to witness the significant price disparity between branded and generic items to realize that consumers are prepared to pay more for brands they enjoy. For comparison’s sake, a 400-gram can of Napolina’s Italian chopped tomatoes costs 95 pence, while Tesco’s own-brand version costs 35 pence.

Brand equity is a zero-sum game, and those willing to take risks tend to come out on top. FMCG behemoths like Procter & Gamble, Unilever, and Mondelez shifted their attention back to brand development and away from promotions in 2016. Brand equity is a primary concern for online consumer companies as well, with the ultimate goal of differentiating themselves from the competition.

According to studies, corporations may charge a premium for their goods even if there is no discernible physical advantage over the competition.

As a consequence of being able to charge more, brand equity is a crucial measure of a company’s health and success in the stock market. As of early 2019, the five most valuable brands in the world were Amazon, Apple, Google, Microsoft, and Visa. Each of these companies has built a substantial amount of trust in their products and services among consumers and businesses throughout the globe.

  • Greater Influence 

Just as attractive individuals are said to have more opportunities in life, so too do companies with strong brand equity. Fundamentally, unlocking doors becomes considerably less of a hassle. Companies are more eager to collaborate with powerful allies when forging strategic alliances. It’s a win-win situation when businesses work together.

In addition, research has shown that organizations with substantial brand equity have an easier time attracting top people. That’s because people’s expectations of the honor they’ll get from belonging to an organization are influenced by their impressions of the organization’s reputation, and people use reputation perception as a signal regarding job characteristics.

Moreover, they understand that having experience working for a reputable company would benefit them in their job hunt. People are willing to pay cuts to work for reputable brand management services.


Brand loyalty is more crucial than ever in this era of always-on, always-connected customers. According to Thomson Reuters and Interbrand, 75% of a corporation’s Much of its value is now intangible (whereas it was 95% tangible only 30 years ago). This means that building a solid online and offline fan base has a direct impact on your bottom line.

This implies that the value of a firm can only be maximized if it has widespread consumer awareness and a high rate of customer recommendations.

To achieve and maintain your position as a market leader, you must take the necessary actions to establish and continuously measure your brand’s equity.

Want to know the insider secrets of assessing your brand’s equity, loyalty, and more? Learn more about brand tracking with our free Ultimate Guide.

Related posts
Digital Marketing

Factors to Consider While Selecting Web Design Company.

2 Mins read
BusinessDigital MarketingFeatured

Content Marketing Trends in 2022

3 Mins read
Digital Marketing

Awesome Tips To Pursue Your Seo Requirements by VSM

5 Mins read

Leave a Reply

Your email address will not be published. Required fields are marked *

buy windows 11 pro test ediyorum