Brand Equity: Why Brands Should Build and Improve It

Brand Equity: Why Brands Should Build and Improve It

Marketing a brand is more than just the use of social media. There are so many concepts to learn and so much jargon to understand. But if you want your business to stand out and have a solid background, you need to dive deep into branding and learn everything you can about it. One of the terms you might hear is “brand equity.” This marketing aspect can be a more complicated concept to explore than what you think, but let this article give you some insight into it.

Understanding Brand Equity: What Is It?

Brand equity refers to the value that the company assigns to its products or services. When consumers recognize the brand‘s equity, they might be more willing to pay for higher prices—even if the products or services are not unique in the market. The marketing term defines the brand’s assigned value in a short and simple description, identified mainly by its tangible assets. 

Take a look at brands like Apple and Coca-Cola. From their visuals alone, the brands are recognizable. That is made possible by the way that the brand handles its marketing. There is no need to explain who their products are and what they do because their target consumers already have an affinity to the positive brand equity they created. 

That is why this brand can also be complex, as it takes much time and a lot of effort before brands achieve the kind of equity they enjoy today.

Why You Should Consider Building Your Brand Equity

You might think that people’s concept of your brand is out of your hands, but in reality, you have control over that. If your marketing agency manages it from the start, you can also control the following:

1. Boosted ROI

Brand equity is about establishing your brand deeper and having that deep connection with the people. The more people know and trust your brand, the less you need to spend on expensive marketing materials. Because people already know your brand’s worth, you can put out fewer advertisements. 

2. More Profitable Prices

If you have already established your brand, people would be more than willing to pay extra to experience your brand promise.

3. Reason to Expand

The greatest challenge among businesses is expansion. It is one of the fastest and most effective ways of bringing, but it can be risky. Brands with positive brand equity have fewer things to worry about. They can leverage that brand trust and loyalty and guarantee a following even after the launch of the new products.

What Makes Up Brand Equity

Brand equity is comprised of many factors that differ from business to business, but here are some of the common ones:

  • Brand Awareness: Knowledge about your brand, your offerings, and how well consumers can recall your brand. 
  • Brand Association: The attributes or qualities that come to people’s minds when they think about your brand.
  • Perceived Quality: What people expect from the brand
  • Brand Loyalty: The reason for repeat purchases despite competitors. 


Once you build your brand equity and use it the right way, you can allow your company to engage with your loyal customer base and let the business grow further. Putting effort into this aspect of marketing can increase recognition, create a solid emotional connection with the customers, and boost negotiating power. It would be worth it as an endeavor because it increases sales and improves your brand’s competitive advantage.

If you need help in developing your brand equity, C/C/G can help you. We are a full-service marketing agency in Santa Monica that can help you create focused marketing solutions for your brand. Let us help you grow and strengthen your consumer connections. 

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