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Brand Equity and why its important December 11, 2006

Posted by Laxmi Goutham Vulpala in Uncategorized.

Brand equity is an intangible asset built up by company overtime by building awareness, having a well-known name or a clear identity, consistent communications, marketing to the consumer, acting socially responsible, and spending on advertising and promoting the brand.


It is important because the products associated with the brand command a premium price in the market and are perceived to be higher quality when compared to the similar generic unbranded products. Brand equity also offers competitive advantages by reducing the marketing costs (because of high brand awareness and loyalty) to firms that enjoy high   “Brand Equity” and thus enhances their earnings.

  Brand equity is created over a long period of time by using investing employing various tools like advertising, public relations (PR), sponsorships, events, social causes etc around the entity that’s marketed. Once the brand equity has been created it is also important to carefully manage and overtime grow the equity of the brand employing the same tools mentioned above.  If not dealt with carefully, there is a chance the brand equity is destroyed over time.



1. Mukti Narechania - October 26, 2009

Hey thnx 4 d info..
it helpd me..

2. silindzile mmema - November 16, 2013

perfect,well explained,i love it…

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