Terms

Brand Equity

What is Brand Equity?

Brand equity refers to the value premium a company generates from a product with a recognizable name compared to a generic equivalent. It is built on consumer perception, which includes knowledge and experience with a brand and its products, and can result in either positive or negative effects. Positive brand equity benefits an organization's products and financials, while negative brand equity has the opposite effect.

Understanding its Importance

Brand equity holds significant importance as it leads to increased customer loyalty, higher perceived value, and a competitive advantage in the market. It directly impacts sales volume and a company's profitability. By understanding brand equity, businesses can develop effective marketing strategies, create strong brand associations, and improve customer retention. Additionally, investors can evaluate the strength and performance of a company in public markets.

  • Brand equity enables brands to charge premium prices.
  • It helps in adding new product offerings under the same umbrella brand.
  • It can increase stock prices for organizations.
  • Brand equity can increase order value per customer, leading to higher profit margins.
  • It can reduce ad spend by improving reputation.
  • It can increase sales and maximize customer retention.

Positive brand equity generates loyal customers who promote the brand and are more likely to buy multiple products or services from the company. Conversely, negative brand equity can make it difficult for a company to recover and attract new customers.

Building Strong Brand Equity

Building strong brand equity involves creating memorable products, maintaining consistency in branding, and ensuring positive customer experiences.

  • Create memorable products: Focus on developing products that leave a lasting impression on customers.
  • Maintain consistency in branding: Ensure that all branding elements, such as logos, color schemes, and messaging, remain consistent across all platforms.
  • Ensure positive customer experiences: Prioritize customer satisfaction by providing exceptional service and addressing issues promptly.
  • Use mass marketing campaigns: Raise brand awareness and create positive associations through widespread marketing efforts.
  • Establish a unique brand identity: Understand the purpose behind the brand, test messaging, drive awareness, and focus on customer experience to build a distinct identity.
  • Leverage social media: Engage with customers on social media platforms to gather insights and strengthen relationships.
  • Measure brand equity: Regularly assess consumer perceptions to understand and maintain brand equity over time.
  • Focus on the customer journey: Divide the customer journey into stages—awareness, recognition, trial, preference, and loyalty—and ensure positive experiences at each stage.
  • Study successful strategies: Analyze examples of strong brand equity, such as Starbucks, to gain insights into effective brand-building techniques.

Measuring Brand Equity

Measuring brand equity involves evaluating three basic components: consumer perception, positive or negative effects, and the resulting value. Consumer perception, which encompasses knowledge and experience with a brand, directly impacts brand equity. Positive brand equity can lead to increased customer loyalty, higher perceived value, and a competitive advantage in the market, while negative brand equity has the opposite effect.

Challenges in measuring brand equity include quantifying abstract concepts like brand awareness and brand experience, determining the impact of branding investments on sales and conversions, and blending different types of models for measurement. Successful brand equity measurement examples include Apple and Coca-Cola, both known for their strong brand equity and loyal customer base.

Real-World Applications

Real-world applications of brand equity can be observed in various successful companies.

  • Tylenol: A trusted brand for pain relief, expanding its market with various product extensions.
  • Kirkland Signature: Costco's private label brand, offering a wide range of products at lower prices than other name brands.
  • Starbucks: Admired for strong brand equity in the coffee industry, known for its social responsibility and global presence.
  • Apple: Maintains high brand equity due to its consistent, identifiable design and unwavering consumer preference.
  • Coca-Cola: Preserves high brand equity through a consistent logo, font, and color scheme, focusing on creating emotional connections with consumers.
  • Adidas: Shifts focus from short-term metrics to overall brand health, using a 60/40 ratio of long-term brand-building campaigns and short-term conversion campaigns to establish positive brand equity.

Other terms

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Quality Assurance

Quality Assurance (QA) is the systematic process of ensuring a product or service meets specified quality standards from development to delivery.

Quality Assurance

Jobs to Be Done Framework

The Jobs to Be Done (JTBD) framework focuses on understanding customer needs by identifying the specific 'job' they are trying to accomplish.

Jobs to Be Done Framework

Business Continuity

Learn about business continuity, including understanding key components, steps to ensure continuity, common challenges, & best practices.

Business Continuity

Dark Funnel

The Dark Funnel describes customer buying activities that are untrackable by companies, such as private chats and word-of-mouth referrals.

Dark Funnel

User Experience

User Experience (UX) refers to a person's overall feelings and perceptions while interacting with a product, system, or service.

User Experience

CRM Data

CRM data is the information businesses use to manage customer relationships. It covers contact details, purchase history, and communication logs.

CRM Data

Win/Loss Analysis

Win/Loss Analysis is the process of systematically tracking and analyzing the reasons why you win or lose deals with prospective customers.

Win/Loss Analysis

End of Day

End of Day (EOD) refers to the close of business hours. It's a common deadline for tasks and reports to be completed before the workday ends.

End of Day

Pipeline Management

Pipeline management is the process of tracking and managing potential customers as they move through the different stages of your sales process.

Pipeline Management

Sales Territory Planning

Sales territory planning is the process of dividing customers into geographic areas to be assigned to specific sales reps or teams.

Sales Territory Planning

Buyer Behavior

Learn about buyer behavior, including understanding the buyer's journey, influencing factors in buyer behavior, & buyer behavior and marketing strategy.

Buyer Behavior

B2B Data

Learn about B2B data, including sources and types of B2B data, leveraging B2B data for sales success, & ensuring the accuracy of B2B data.

B2B Data

Contact Data

Contact data is the set of details, like names, emails, and phone numbers, used to get in touch with a person or business for outreach.

Contact Data

Conversion Path

A conversion path is the journey a visitor takes to complete a desired goal, such as making a purchase, filling out a form, or subscribing.

Conversion Path

Opportunity Management

Opportunity management is the process of tracking potential sales from first contact to a closed deal, helping teams prioritize and win more.

Opportunity Management

Business to customer

Learn about business to customer, including maximizing B2C sales strategies, B2C vs. B2B: unveiling differences, & core principles of B2C success.

Business to customer

SQL

SQL (Structured Query Language) is the standard language for managing and querying data within relational databases.

SQL

Subject Matter Expert

A Subject Matter Expert (SME) is an individual with profound knowledge and authority in a particular area, topic, or industry.

Subject Matter Expert

Warm Outreach

Warm outreach is contacting prospects with whom you have a pre-existing connection, like a mutual contact, making your message more personal and effective.

Warm Outreach

Video Prospecting

Video prospecting is the sales technique of sending personalized videos to potential customers to grab their attention and secure more meetings.

Video Prospecting

Average Order Value

Average Order Value (AOV) tracks the average dollar amount spent each time a customer places an order on your website or mobile app.

Average Order Value

Revenue Intelligence

Revenue intelligence is the process of collecting and analyzing customer data to provide insights that help sales teams make smarter decisions.

Revenue Intelligence

Responsive Design

Responsive design is an approach where a website's layout adapts to the user's screen size, providing an optimal experience on any device.

Responsive Design

Average Revenue per User

Average Revenue per User (ARPU) is a key performance indicator that calculates the average revenue generated from each user or subscriber.

Average Revenue per User

Payment Processors

Payment processors are companies that handle card transactions, connecting merchants with the banks needed to complete a sale.

Payment Processors

Smarketing

Smarketing is the process of aligning your sales and marketing teams. This integration focuses on shared goals to improve lead quality and drive revenue.

Smarketing

Expansion Revenue

Expansion revenue is the extra money a business makes from its current customers via upgrades, new products, or additional services.

Expansion Revenue

Consumer Relationship Management

Consumer Relationship Management (CRM) is a strategy for managing all of a company's relationships and interactions with its customers.

Consumer Relationship Management

Warm Calling

Warm calling is contacting prospects with a prior connection, like a referral or social media interaction, to make your outreach more relevant.

Warm Calling

Lead Scoring Models

Lead scoring models rank prospects by assigning points for their behaviors and demographics, helping sales teams prioritize their outreach.

Lead Scoring Models

Persona

A persona is a semi-fictional profile of your ideal customer, based on market research and real data about your existing customers.

Persona

Data Privacy

Data privacy is an individual's right to control their personal information, including how it's collected, processed, stored, and shared.

Data Privacy

Regression Analysis

Regression analysis is a statistical method for estimating the relationships between a dependent variable and one or more independent variables.

Regression Analysis

Challenger Sales

The Challenger Sales model is a methodology where reps teach prospects, tailor their pitch, and take control of the sales conversation.

Challenger Sales

Sales Process

A sales process is a structured set of steps that a sales team follows to move a prospect from an initial lead to a closed customer.

Sales Process

Employee Engagement

Employee engagement is the emotional commitment an employee has to their organization, motivating them to contribute to the company's success.

Employee Engagement

Competitive Analysis

Competitive analysis means identifying your rivals and assessing their strategies to pinpoint your own business's strengths and weaknesses.

Competitive Analysis

Lead Enrichment Software

Lead enrichment software adds crucial data to your leads, like contact info and firmographics, to help you better understand and engage them.

Lead Enrichment Software

Complex Sale

A complex sale features a long sales cycle, multiple stakeholders, and a high-value transaction, demanding a strategic, consultative approach.

Complex Sale

Decision Buying Stage

The decision stage is where a well-researched buyer chooses a vendor. They compare specific products and pricing before making their final purchase.

Decision Buying Stage

Draw on Sales Commission

A draw on commission is an advance payment a salesperson receives against future earnings, which is later repaid from earned commissions.

Draw on Sales Commission

AI-Powered Marketing

AI marketing uses artificial intelligence to analyze data, automate decisions, and deliver personalized customer experiences at scale.

AI-Powered Marketing

Data Mining

Data mining is the process of discovering patterns, trends, and useful information from large datasets to make better business decisions.

Data Mining

Email Personalization

Email personalization uses subscriber data—like their name, interests, or past behavior—to create highly relevant and targeted email campaigns.

Email Personalization

FAB Technique

The FAB technique is a sales framework connecting product features to advantages and then to the specific benefits for the customer.

FAB Technique

Escalations

Escalations are the process of moving a customer issue or sales opportunity to a more senior or specialized team member for resolution.

Escalations

Marketing Metrics

Marketing metrics are quantifiable values that marketing teams use to measure and track the performance of their campaigns and efforts.

Marketing Metrics

Customer Segmentation

Customer segmentation is dividing customers into groups based on shared traits. This allows for more targeted and effective marketing efforts.

Customer Segmentation

Intent leads

Intent leads are prospects who show buying signals through their online actions, indicating they're actively looking to make a purchase.

Intent leads

Predictive Lead Generation

Predictive lead generation uses data and AI to find prospects most likely to buy, helping teams focus their efforts on high-value leads.

Predictive Lead Generation

AI Sales Script Generator

An AI sales script generator is a tool that uses artificial intelligence to create personalized sales scripts for any outreach scenario.

AI Sales Script Generator

B2B2C

Learn about B2B2C, including benefits of B2B2C model, key strategies for B2B2C success, & B2B2C vs. B2C vs. B2B: understanding the differences.

B2B2C

Sales Training

Sales training is the process of honing a salesperson's skills and knowledge to enhance their effectiveness and drive sales success.

Sales Training

Sales Operations

Sales Operations, or Sales Ops, streamlines sales processes, manages tools, and analyzes data to help sales teams sell more effectively.

Sales Operations

Rapport Building

Rapport building is the process of establishing a connection and mutual understanding with someone, creating a foundation of trust and affinity.

Rapport Building

Performance Plan

A performance plan is a formal document outlining an employee's goals, expectations, and metrics for success over a specific period.

Performance Plan

Deal Closing

Deal closing is the final step in a sales cycle. It's when a prospect signs a contract and officially converts into a paying customer.

Deal Closing

Use Case

A use case is a detailed description of how a user interacts with a system to achieve a specific goal, outlining the steps from start to finish.

Use Case

Salesforce Administrator

A Salesforce Administrator is a certified professional who manages and customizes the Salesforce platform to meet a company's specific business needs.

Salesforce Administrator

Brand Awareness

Learn about brand awareness, including understanding its importance, building an effective strategy, key metrics to track, & examples in the real world.

Brand Awareness

Account Management

Account management is the post-sales practice of building and nurturing long-term relationships with a company's most valuable clients.

Account Management

Average Customer Life

Average Customer Life is the average time someone remains a customer. It's a key metric for predicting revenue and measuring customer loyalty.

Average Customer Life

D2C

Direct-to-consumer (D2C) is a sales strategy where a brand sells its products directly to end customers, bypassing any third-party retailers.

D2C

Buying Process

The buying process is the journey a customer takes from first realizing a need to making a final purchase decision and evaluating it afterward.

Buying Process

Virtual Private Cloud

A Virtual Private Cloud (VPC) is a secure, isolated section of a public cloud. It lets you provision your own logically isolated resources.

Virtual Private Cloud

Marketing Play

A marketing play is a repeatable tactic used to achieve a specific marketing goal, like generating leads or driving engagement.

Marketing Play

Fault Tolerance

Fault tolerance is a system's ability to continue operating without interruption when one or more of its components fail.

Fault Tolerance

Sales Funnel

A sales funnel is a model illustrating the customer's journey from initial awareness to the final purchase, narrowing down leads at each stage.

Sales Funnel

Business-to-Business (B2B)

Learn about B2B, including what is it, its key elements, the benefits of B2B partnerships, the differences between B2B and B2C, and strategies for effective marketing.

Business-to-Business (B2B)

Lead Nurturing

Lead nurturing is the process of developing and reinforcing relationships with buyers at every stage of the sales funnel.

Lead Nurturing

Sales Development Representative (SDR)

A Sales Development Representative (SDR) is a sales specialist who finds and qualifies new leads, building a pipeline for the sales team.

Sales Development Representative (SDR)

InMail Messages

LinkedIn InMail messages are a premium feature that lets you directly message any LinkedIn member, even if you're not connected to them.

InMail Messages

Branded Keywords

Learn about branded keywords, including identifying your branded keywords, & strategies for optimizing branded keywords.

Branded Keywords

Channel Marketing

Channel marketing is a strategy where a company sells its products or services through third-party partners, like resellers or affiliates.

Channel Marketing

Edge Locations

Edge locations are globally distributed data centers that cache content close to users, reducing latency and delivering web content much faster.

Edge Locations

Consultative Sales

Consultative selling is a sales approach where a salesperson acts as an advisor, focusing on understanding and solving a customer's specific needs.

Consultative Sales

Triggered Email

A triggered email is an automated message sent to a user in response to a specific action or event, like signing up or making a purchase.

Triggered Email

Behavioral Analytics

Learn about behavioral analytics, including implementing behavioral analytics successfully, & key metrics in behavioral analytics.

Behavioral Analytics

Microservices

Microservices is an architecture where apps are built as a collection of small, independent services that communicate with each other over APIs.

Microservices

Sales Territory

A sales territory is a specific group of customers or a geographic area that a salesperson or sales team is responsible for managing.

Sales Territory

Hadoop

Hadoop is an open-source framework designed for the distributed storage and processing of extremely large data sets across clusters of computers.

Hadoop

Account Executive

An Account Executive (AE) is a sales professional responsible for closing new business deals and managing existing client relationships to drive revenue.

Account Executive

Sales Funnel Metrics

Sales funnel metrics are key data points that track how effectively you're moving potential customers from awareness to a final purchase.

Sales Funnel Metrics

Process Builder

Process Builder is a Salesforce automation tool that lets you create 'if/then' business processes with a user-friendly visual interface.

Process Builder

Event Tracking

Event tracking is the method of collecting data on specific user actions, or 'events,' on a website or app, such as clicks or downloads.

Event Tracking

Buying Cycle

The buying cycle is the journey a customer takes from first realizing they have a need to making the final purchase decision.

Buying Cycle

Churn

Churn, also known as customer attrition, is the rate at which customers stop doing business with a company over a given period.

Churn

Performance Monitoring

Performance monitoring involves collecting and analyzing data to track a system's operational health and efficiency, ensuring it meets set standards.

Performance Monitoring

Sales Sequence

A sales sequence is a series of automated touchpoints sent to prospects over time to guide them through the sales funnel.

Sales Sequence

Touches

Touches are the individual interactions you have with a prospect throughout the sales process, from emails and calls to social media messages.

Touches

Data Encryption

Data encryption translates data into another form, or code, so that only people with access to a secret key or password can read it.

Data Encryption

Bad Leads

Learn about bad leads, including identifying bad leads, warning signs of bad leads, impact of bad leads on sales, & strategies to minimize bad leads.

Bad Leads

CRM Enrichment

CRM enrichment is the process of adding third-party data to your existing customer profiles to make them more complete and accurate.

CRM Enrichment

RESTful API

A RESTful API is a web service interface that uses HTTP requests to access and use data, adhering to the constraints of REST architecture.

RESTful API

Ideal Customer Profile

An Ideal Customer Profile (ICP) is a detailed description of the perfect, hypothetical company that would get the most value from your product.

Ideal Customer Profile

Bounce Rate

Learn about bounce rate, including understanding bounce rate implications, key factors affecting bounce rate, & reducing your bounce rate effectively.

Bounce Rate

Content Delivery Network

A Content Delivery Network (CDN) is a system of distributed servers that deliver web content to users based on their geographic location.

Content Delivery Network

Marketing Attribution Model

A marketing attribution model is a framework for assigning credit to the marketing touchpoints that lead a customer to convert.

Marketing Attribution Model

B2B Leads

Learn about B2B leads, including identifying quality B2B leads, generating B2B leads effectively, & B2B leads vs. B2C leads: understanding the differences.

B2B Leads

Adobe Analytics

Adobe Analytics is a leading web analytics solution for gaining real-time insights into user activity across websites and mobile applications.

Adobe Analytics