Building brand equity requires the right brand promise and long-term investment in delivering it via product performance, advertising and pricing strategy. It requires ongoing analysis of in-market brand equity and growth drivers, to ensure brand plans build sales and market share long-term.
Brand equity is sometimes a term of financial value but more commonly reflects a consumer view of the brand – whether a measure of strength of consumer attachment or a description of consumer associations. While different definitions of consumer brand equity abound, there is consensus that it’s about the added value a brand name gives to a product and which can help fuel business growth.
The key prevailing equity models were proposed by David Aaker and Kevin Keller in the 1990s. Aaker identified brand awareness, brand associations, perceived quality and brand loyalty as key dimensions of brand equity. Keller’s definition of equity as the effect of brand knowledge on consumer response to brand marketing led him to focus on the components of knowledge – awareness and associations.