How to define brand equity?
Brief brand equity definition: it is a term for the marketing effects and outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name.
Brand equity definition explained: brand equity plays a big role in marketing: a well-known brand name is that, the company can sometimes charge premium prices from the consumer. And, at the root of these marketing effects is consumers’ knowledge. In other words, consumers’ knowledge about a brand makes manufacturers and advertisers respond differently or adopt appropriately adept measures for the marketing of the brand. Brands are one of the most valuable assets a company has. Brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. Elements that can be included in the valuation of brand equity include (but not limited to): changing market share, profit margins, consumer recognition of logos and other visual elements, visual communication, brand language associations made by consumers, consumers’ perceptions of quality and other relevant brand values.
Brand equity is strategically crucial, but famously difficult to quantify. Many experts have developed tools to analyze this asset, but there is no universally accepted way to measure it. In a survey of nearly 200 senior marketing managers, only 26 percent responded that they found the “brand equity” metric very useful.
Adapted from wikipedia.