How to Build Brand Equity Your Business

Brand Equity

Curious why products with high prices are still being sought and sold in the market? Behind it is a long process, one of which is increasing brand equity . What is Brand Equity? In the world of marketing , brand equity is the value or value of a brand .

How consumers judge your product is different from other similar products on the market, so it has a higher value . Then how important is the role of brand equity for the success of a business? How to build good brand equity? All these questions will be answered in this article. Listen carefully!

What is Brand Equity?

Before going into further explanation, let’s look at what brand equity is and why it is important in a business. Brand equity or brand equity is the added value that a company has when compared to its competitors. Brand equity is also influenced by consumer perceptions and experiences.

Building brand equity is something that is very important for a business. If the company has superior brand equity, then consumers have confidence in the products made. They will choose a product from that brand over other products out there.

Product alone is not enough. A business must be able to offer value to its customers in order to grow. Brands that carry value become closer to their consumers and are superior to their competitors.

Komponen Brand Equity

A brand can be categorized as having brand equity if it meets the following four equity components. Check out the full explanation below!

1. Brand Awareness

The first component of brand equity is brand awareness , which is the level of consumer recognition of the brand. Simply put, at this stage the customer is made familiar with a product. When consumers are familiar with the product, it is hoped that there will be an incentive to buy it.

Strategies to increase brand awareness to consumers can be done with social media & influencer marketing , providing free trials, sponsorships , or even event marketing and conducting product placements in several places.

If you are still starting your business, one of the easiest ways to increase brand awareness is to create a website , create an Instagram account , or write a blog on topics related to your product.

2. Perceived Quality

The second component in brand equity is perceived quality, namely the subjective quality of an item in the eyes of consumers.

When you buy a product, you definitely have an impression of the product and brand. How is the quality, is it as expected, and so on.

Perceived quality is related to consumer perceptions of the superiority of a product related to the goals that have been set. Of course, to build a positive perception of the brand , a strategy is needed to improve product quality.

3. Brand Association

The third component of brand equity is brand association or brand association. This brand association relates to everything that is attached to the consumer’s memory regarding a brand . Brand association can be regarded as a connection between a brand and its concept so that it is easy to remember.

The association in question can be a logo, concept, product name, or emotion related to a person’s experience when interacting with the product.

Examples of brand associations that are often encountered, for example,

  • Aqua, air mineral
  • Indomie, instant noodles
  • Xiaomi, affordable
  • Mercedes, luxury cars

A brand is said to have high equity if it has a positive association from consumers. This is closely related to brand positioning , namely how a company positions their brand among its competitors. A brand that is positioned properly will look competitive and attractive in the eyes of consumers.

4. Brand Loyalty

The fourth element in  brand equity is brand loyalty or loyalty to a brand. The positive impression that consumers feel on the product of a brand will form a commitment to repurchase the brand consistently.

Brand loyalty refers to consumer loyalty to the product of a brand. When it reaches this stage, consumers will find it difficult to switch to other products even though they are lured by low prices and so on.

Benefits of Brand Equity for Business

There are several reasons why companies continue to compete in increasing brand equity. Here are some of the benefits that can be obtained if you succeed in building positive brand equity in the eyes of consumers.

1. Get loyal customers

Brand equity is one of the effective methods to get loyal customers. With the formation of consistently positive brand equity, consumers are increasingly trusting and loyal to the brand.

This is because brand equity makes consumers believe in product quality. Not surprisingly, some brands that even price their products at high prices are still always sought after by their loyal customers.

2. Increase customer retention

If someone is satisfied with the quality of the iPhone, there is a tendency that he will choose to buy a Smartwatch, Macbook, or iPad product rather than buying products from other brands.

Consumers’ positive experience with a product will make them believe in the quality of other products from the same brand. Customers expect them to get the same quality and comfort as offered in the products they have purchased.

3. Price is no longer a problem

Apple’s latest products always sell well even at high prices. Even buyers have to be willing to queue up to get a cellphone for tens to tens of millions. Consumers dare to spend higher to get the quality they expect.

This is why, companies continue to compete in increasing brand equity. Price is no longer a problem for consumers. That is one of the advantages obtained if a brand has high equity.

4. Resistant to business competition

Brands with high equity are more resistant to business competition. With all the advantages mentioned above, it is undeniable that a company with high brand equity becomes more resilient to increasingly rampant business competition.

How to Build Brand Equity

In order to obtain the above benefits, companies are competing to use various effective methods to build good brand equity in the eyes of consumers. Here are some ways to build brand equity that you can follow.

1. Create a strong brand identity

The first step to building brand equity is establishing a strong identity for your brand. Create a brand identity that stands out and decide what you want your brand to look like from the consumer’s point of view.

Brand identity must be in line with the product being carried. What is the target market like, and why do they need your product compared to other similar products on the market. A strong brand identity will make consumers closer to the brand.

2. Convey brand value

The next step is to communicate the brand value to consumers. Brand identity must also be sustainable with the brand value that is carried.

Consumers tend to find it easier to build bonds with brands that have the same values as their own. For example, a company that is committed to being green will find it easier to bond with consumers who also support these values.

3. Build a positive perception on consumers

Creating a strong brand identity and value if it is not accompanied by satisfactory product quality will be useless. Therefore, in building positive perceptions from consumers, product quality must also be improved.

In addition to quality, consumer ratings of brands can be related to several things. Such as credibility, how relevant the product is to consumer needs, and what are the advantages over products from competitors. These things need to be considered in running a business.

4. Execute an effective marketing strategy

The next step is to apply the right marketing strategy to market the brand. Think about how to effectively reach customers because every business has a different approach, according to the type of industry and target market.

Execute an effective marketing strategy to reach the right consumers. Choose media to promote, make offers and promos to attract buyers.

5. Build bonds with consumers

Building bonds with consumers is important in maintaining the continuity of a business. Indeed this is not an easy thing.

But if this has been achieved, you will get loyal customers, tend to make purchases consistently, and don’t want to be left behind by the latest information by following your brand’s social media.

One way, you can involve consumers in developing products. Consider consumer reviews and see what they need.

Examples of Application of Brand Equity

Let’s look at an example of brand equity from a well-known coffee shop brand, Starbucks.

In 2021, Starbucks is the only  food service  company to be in the Top 10 World’s Most Admired Companies , among most technology companies.

This American coffee shop brand has successfully opened its outlets in several countries. Even in Indonesia, Starbucks has 440 outlets spread widely in densely populated urban areas, even on several tourist islands.

Starbucks in Indonesia is considered to have achieved success. According to sources , out of a total of 70 countries where Starbucks is located, Indonesia is in the tenth largest revenue contributor country.

Starbucks has succeeded in hooking its target market in Indonesia. Even though they sell drinks starting at IDR 40,000, many people still prefer Starbucks over other coffee shops with lower prices. In fact, many of them become loyal consumers. Why?

Of course, there are many factors that influence it, one of which is because of the existence of the brand. The Starbucks brand itself is a selling point . Not only about coffee, they ‘sell’ the convenience of a meeting place for the community. This is what makes it superior to competitors.

Conclusion

That was the explanation about the brand equity that we could provide. Brand equity is the added value of the company is influenced by consumer perceptions. Brand equity is very important for a company. For that make consumers satisfied with the best products and services that can be provided.

In building good brand equity, of course, effort is not instant. It takes perseverance and thoroughness to find out what the target market needs and build deep bonds with consumers.

I hope this article can help you! Read other informative articles on our blog , best wishes for online success!

Brilliant! 11 Online Marketing Strategy for Beginners

online marketing

Online marketing or online marketing is any activity or business of marketing products or services through or using the internet. Even so, strategically, online marketing is more often used as the first step in building the reputation of a business. Many people use online marketing as a strategy to introduce their name to the public.

In using online marketing , a company can build its reputation by being active on social media. Many potential consumers use the internet to find information. By utilizing the medium of the internet, a company can introduce their name to the public and encourage potential consumers to seek more information about the company.k

There are various strategies that can be done in online marketing . But what needs to be considered is that the ways to market your business in online marketing are different from advertising . Online marketing strategies are more focused on promoting your business name subtly so it doesn’t look like you’re advertising a business.

Because most online marketing is personal and often tailored to the wants and needs of consumers, this strategy itself is also often used to build relationships and connections between a business and their customers.

Online Marketing Strategy

There are several online marketing strategies that you need to know. Here’s the explanation:

Focus on consumers

Marketing always starts with the consumer. In any business, the customer must always be the priority. Make sure yourself that you can understand what your customers want.

Start by asking a few questions about how your customers first discovered your brand and how their experience with your brand was .

In addition, you can also create a buyer persona . In short, a buyer persona is a character that becomes an ideal consumer for your product. To create a buyer persona, you can start by determining their demographic status such as age, education, field of work, and so on, as well as what they want and need from the products you offer.

In addition to knowing the consumers themselves, you also need to learn how they make decisions to buy your product. Some questions you can ask to better understand their mindset in deciding a purchase are:

  • How did they first find your business?
  • What makes them interested in becoming consumers of your product?
  • How do consumers decide whether they will buy an item?

Through these questions, you can better understand how a buyer becomes interested and decides to buy the product you offer.

Follow Conversion Funnel

If you already understand the consumer’s mindset, create a diagram called the Conversion Funnel .  This diagram is one of the important concepts in online marketing. The shape of the funnel itself can be different, depending on the needs.

Model AIDA

The conversion funnel  is a development of the AIDA model, otherwise known as the purchase funnel , which is part of traditional marketing. You can see the AIDA model in the diagram below.

Awareness – Consumers are aware or aware of the existence of a type of product or service.

Interest – Consumers begin to show interest in the product or service.

Desire – Consumers begin to have a desire to buy the product or service.

Action – The consumer takes the next step to buy goods or pay for services.

Conversion Funnel Online Marketing

Based on the AIDA model above, we can form a conversion funnel for online marketing. Conversion funnels take different forms, depending on the needs of a company. An example of a conversion funnel is the diagram below:

Awareness – In the early stages, consumers are aware or know of a type of product or service.

Consideration – At this stage, consumers show interest in the products offered and start thinking about buying them.

Conversion – This is an important stage where consumers who were previously only potential customers or potential consumers finally buy the product, turning them into your customers. This can be done by providing information to them to get to know the product more deeply.

Loyalty – At this stage, consumers are expected to become loyal customers of your business.

Advocacy – At this stage, consumers are expected to tell others about the products you offer so that more people are interested in buying from you.

From the two models above, you can see that all funnels have the same goal, namely:

Introduce the product to as many potential customers as possible

Build interest for potential customers

Provide information to potential customers so that they have a strong desire to buy the goods or services you offer.

Prospective consumers become your regular customers and buy goods or services from your brand .

By having a conversion funnel, you can develop a  better and more mature online marketing strategy. Customize your online marketing activities with a conversion funnel structure so that no steps are missed.

Use content marketing to connect with consumers

In online marketing,  content marketing plays a big role in building relationships with consumers and potential customers. In addition, content marketing also plays a role in increasing brand awareness of your business so that people know the existence of your business.

Good content marketing must start with a story concept that appeals to consumers. Storytelling for content marketing  can be difficult to write because content marketing should not act as a medium to sell the products you offer, but rather to introduce your brand to the public. In addition, you can also establish yourself as an expert in your field through content marketing.

Content marketing  is not only in the form of writing. There are many ways you can do to create attractive content marketing for potential consumers, for example videos.

As long as the videos you make are relevant to your product, they can be entertaining or educational. Content like this can also help you  increase brand awareness .

Apart from videos, e-books or e-books are another type of content marketing that you can create. You can publish an e-book on your website . Infographics can also be a type of content marketing that you use to explain complex topics.

Infographics help cover a complex topic in a simple way that is easy to understand. Another type of content marketing that you might be interested in trying is webinars. In short, a webinar is an online version of a seminar.

The cost required is not too much and webinars can also be accessed by many people from anywhere. You can invite an expert to be one of the speakers at the webinar you are holding.

Use email marketing to get in touch more personally with consumers

Of all online marketing strategies, email marketing is the most personal. Almost everyone has the habit of checking their email inbox almost all the time. This makes email marketing one of the strongest strategies in online marketing.

Email marketing is another way to communicate directly with audiences and consumers. You can send an email once a month or once a week, giving a summary of the interesting things that happened in your business in the last week or month, or commonly known as highlights .

Before sending an email you need to prepare a  mailing  list. How do you add an email to your email list ? You can take advantage of the content marketing strategies mentioned above to invite people to your website and get them interested in subscribing to emails from your website .

The obstacle that may be faced is the number of email subscribers who ignore an email because they think it is  spam or the subject of the email is less interesting. Therefore, pay attention to these three things when using email as a marketing strategy: content, relevance, and importance of the email.

The subject of your email is the first thing your recipient reads. Therefore, you must make sure that the subject of your email is interesting so that the recipient will be more interested in opening the email. Even so, remember to also give the email subject that matches the content of the email.

Another thing to watch out for is email delivery. Imagine if you have to send thousands of emails to a  mailing  list . Sounds troublesome, right? Use marketing automation software . In short, marketing automation is software  that is used to simplify marketing activities on various online platforms such as email, social media, websites, etc. You can schedule when you want to send emails so you don’t have to send thousands of emails manually.

Email marketing gives you the opportunity to focus on the consumer experience with your brand . Your email is also expected to make the recipient of the email turn into a loyal customer. The content of your email can be used to share content marketing content  so that at the same time, you are building a relationship with the recipient of the email.

Use affiliate marketing

Maybe you’ve heard of affiliate marketing, which is the internet marketing process where someone sells someone else’s product. Affiliate marketing  has now become a fairly popular internet business model. If a sale occurs, then an affiliate marketer will get a commission whose amount is determined by the product owner.

If you decide to apply affiliate marketing, you don’t have to worry. You only need to give a commission to the person who helps sell your product if someone buys the product through that person. In essence, you will only spend money if they are successful in selling your product.

So that people want to join your affiliates program , make sure that the process to join this program is not complicated. Treat  affiliates  like business partners . Basically, you work with them to achieve the same goal, which is to sell the goods or services you offer.

Social media marketing

What is meant by social media marketing is not just having a Facebook page or Twitter account. A strategy is needed to market a business using social media. The first thing to do is to see what your ideal consumer is interested in something on social media. After that, you can choose which social media is the most effective to use as a means of marketing your business.

For social media marketing, you can use analytical tools to help you monitor the social media statistics that you use. Based on the results of the analysis, you will also be able to continue to optimize and improve your social media marketing strategy.

The important thing to note is to take advantage of visuals on social media. Rarely do people want to read a lot of text, especially on platforms like Instagram and Twitter.

Remember that most people use social media to connect with friends, find photos, and find other entertaining things. Make sure that your social media content is entertaining and integrated with your other content, such as blogs and videos. Combined, they can increase traffic .

One of the advantages of using social media is that it allows you to interact directly with your customers. Make sure your posts on social media can get your consumers and followers involved. Shares and retweets on social media are very meaningful because they help provide free exposure for your company.

In addition, take advantage of social media to communicate directly with your consumers. Listen to what your customers have to say through social media. Take advantage of it to improve the brand experience to suit their desires.

Try using pay-per-click marketing

Pay-per-click (PPC) marketing is when you pay every time your ad that appears on a search engine or search engine is clicked. In essence, you buy website traffic  through advertisements placed in search engine results. Every time the ad is clicked, you will pay the search engine.

To run PPC, you have to do research and choose the right keywords . After that, you must use these keywords and choose PPC landing pages that will make visitors interested in the products you offer.

If you want to try using this method, you have to be careful about the strategy you take because this method costs money. It’s a good idea to do an experiment by spending a small amount of money before starting to give  a bigger budget to carry out this strategy.

Optimizing your website’s SEO

Maybe you’ve heard very often about SEO optimization. But SEO is an important and influential thing in online marketing. You cannot discuss online marketing without talking about SEO.

In online marketing, make sure that your SEO and user experience are aligned. Basically, user experience has a big influence on SEO. Currently, user experience is a factor that helps search engines to determine whether your website will appear on the first page or not. So make sure that visitors will not have problems when visiting your website .

When optimizing SEO, don’t forget to pay attention to the technical part of SEO and not just pay attention to the strategies. Think of SEO as a link between you as a writer and  search engines, to let them know that your website has quality content for certain keywords.

Conclusion

Content marketing is a big part of SEO. Don’t forget to create interesting content, in various types of content marketing as mentioned above. If you want more tips on SEO optimization, we have an article that gives you a complete guide to optimizing your website ‘s SEO.

Don’t forget to keep uploading content regularly. In addition to giving you constant activities every week, your audience will also get used to your schedule, later this can give you an advantage too, namely if your content is awaited by the audience, at least you have an audience who will watch/read the content you upload.

One more thing that you should pay attention to, if you intend to upload content in the form of videos to the website, make sure your website is not slow or error-free so that it can be relied on to show videos, because viewing videos through websites can also increase the number of  views , you know. Good luck for Online Marketing Strategy!