Question

The importance of brands and brand equity was illustrated throughout class in several cases, and readings. From these resources/discussions, what conclusions can you draw about brands and brand equity in marketing strategy?

Answer 1

Answer: Brand Equity- It is the brand's value. It is related to marketing. Brand equity refers to goodwill and market reputation of the company. Brand equity is a tool of marketing strategy. Brand equity is the image and perception of company's product or service in customer's mind.

Brand equity as Marketing strategy- Brand equity is a part of marketing strategy. Companies who want to increase or maintain their market share, they have to increase the brand equity.

Brand equity can be maintained or increased in following ways-

• By providing best quality product or service at lower price.
• By making the customers satisfied. Customer is God. He should be satisfied with your product or service.
• Company should value the customer's money. They should be given value. Their $1 should be stuffed with value.
• Try to get new customers with the help of existing customers to increase your customer base.
• Creating awareness about your product/service and also engaging yourself in Corporate social responsibility.

Conclusion- Brand equity plays a great role in marketing. It increases your sales and profit and your reputation in the market. Companies try to maintain brand equity for sustaining and growing in this competitive era.