Managing brand equity
If you have doubts as to whether names matter, mistake not, they do! And quite a lot at that, too, if you are planning to go out into the market full fledged with a brand new product! Getting the new brand name etched on the minds of the targeted customers is in fact the first step in penetrating a new market.
With the market teeming with competitors, the customer is always in a dilemma as to which product to choose. It is here that brand equity comes into play. The symbol of the mother bird feeding the fledglings is enough to ring bells in the customers mind about the quality Nestle has provided over the years. The very symbol is an assurance of quality!
Brand equity is an intangible asset. It is measured in terms of the price premium, brand extensions or on the basis of consumer preference. The price premium a branded product fetches over a non-branded product is one of the best indicators of brand equity. Brand equity is advantageous in a number of ways. It is not only an asset that can be sold or leased out but it can also command premium prices in the market and increase cash flow.
Managing brand equity involves a lot of steps. According to Peter.H.Farquar the three most important steps involved in managing equity are introduction, elaboration and fortification. The first step involves the introduction of a quality product with the idea of using it as a launch pad for bringing out new products in the future. Elaboration involves reinforcing the name of the brand on the minds of the people by repeated usage.
It is not enough that a positive attitude is developed among the people about the particular brand, but care should be taken to ensure that people remember the positive attitude that they once developed towards the brand. The created image should then be fortified in the customers mind by issuing brand extensions or other strategies. Once the name is etched on the customers mind you can be sure that they will hunt out for your product no matter how many new ones come up.
Putting yourself out in the market and getting instant recognition is what every company desires for. Whether this is achieved through their slogan, logo or name depends on how well they position themselves in the eyes of the consumer. So, if you still think what is in a namethe answer is quite a lot!
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