I finally came up with a definition for brand equity that I am happy to share:

Brand equity is the value of a brand. A popular brand enables a business to sell more products at a higher profit margin; that ability is valuable. Brand equity is the dollar value a company would pay to purchase a brand or sell their brand for.

The understanding that the brand has a definable value unites all the people in an organization on one mission: increase the value of the brand.

How do you do that? You set a brand promise with your marketing and communications and then you deliver a product or service that meets the expectations you set.

When McDonald’s tantalizes us with a Big Mac (assuming you are an omnivore, like me!) they are not only promoting, they are promising. If I go in and the hamburger is as warm, tasty, and timely as the ad promised, then I am going to be more inclined to engage with McDonald’s in the future. That inclination is worth money, and if I and billions of others are more likely to buy, then that ads up to McDonald’s brand equity of $45 billion.

Both marketing and fulfillment are both keys to building a brand and it’s equity.

https://brandmarketingblog.com/articles/branding-definitions/what-is-brand-equity/

Categories: Blog

Colin Finkle

Colin Finkle is an Industrial Designer working in Mississauga, Ontario, Canada. He is an industrial designer with a graphic specialty, meaning he has the rare talent in both 3D and 2D design, creating both the structure and the print graphics for any display. He has worked in the retail display and point of purchase industry his entire career, and had had the opportunity to work closely with clients like Warner Brother, Cadbury, Sony, and many others.

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