Create Brand Value
What is Brand Value?
“Brand value is the ‘perceived value’, and how often people will choose one brand over alternatives. Brand value is important because when people perceive that a brand is distinct and aligns with their personal values, it’s a really powerful competitive advantage.”
So, brand value refers to the worth of a brand to the consumer. It is a subject of much debate in the world of marketing, and there are two schools of thought about its definition:
Financial worth – This is the monetary value assigned to a brand. Perceived worth – The worth that consumers perceive your brand.
Is Brand Value the Same As Brand Equity?
If the term brand value makes you think of dollars and cents, you’re partly correct.
When customers know and love your brand, they are willing to pay more. This is known as brand equity. In other words, brand equity is the price above the product’s market value that consumers are willing to pay.
Brand equity and brand value are linked, but strictly speaking, they are not the same thing.
Why Is Brand Value Important?
Let’s imagine you’re negotiating the acquisition or merger of a major brand.
If you were taking over Coca-Cola, you would be buying a lot more than the recipe for a caffeinated, sugary drink. You would be benefiting from the name, logo, and other brand elements that consumers instantly recognize and trust.
How Is Brand Value Calculated?
Your brand is a valuable asset. With other assets in life, such as your house or your car, you can easily do some research and figure out the going rate.
Calculating the value of a brand, however, is more complex.
We consider a brand’s value to be a measurable concept encompassing the total net worth of your brand.
Key factors include brand recognition (have consumers heard of you?), brand image (how do consumers perceive you?), brand usage (are customers actively buying from you and using your product?), and brand loyalty (do customers stick with you over the competition?).
With brand analytics technology, you can accurately measure your brand awareness and track levels of recognition, popularity, and loyalty among specific relevant audiences. This helps you make better-informed decisions related to your brand.
If you are spending time and budget on brand marketing and campaigns it is vital to measure the impact of what you are doing.
After all, just like an IT manager or accountant can easily point to cost reductions in technology systems or show increased profitability, modern brand managers need to be able to show how their brand has increased or decreased in value over time.
What Makes A Brand Valuable?
Valuable brands have a few things in common. A brand is considered valuable if it’s:
How to Build/Achieve your Brand Value
According to Walter Landor, the Branding Pioneer, products are manufactured in the factory, but brands are created in the mind. It may be easy to calculate the physical value of your products, but it’sconsumer perception that will determine the value your brand has in the marketplace.
This means that it’s important for you to build value into your brand and communicate that value to your customers.
The following are some of the ways through which you can build or achieve brand value:
#1: Improve the Consumer Experience
#2: Understand your Target Audience
#3: Be Unique
#4: Work from the Inside Out
#5: Keep your Tone of Voice (ToV) Consistent
#6: Use High Standards for Design
NEXPort Will Help to Create Brand Value your Company