David Aacker’s model simple framework
Defining Brand Equity
As we adapt to a world post-covid, we find ourselves living in an increasingly competitive marketplace. Brands, more than ever, are presented with the challenge of capturing and sustaining market share whilst maintaining customer loyalty.
Brand equity can be viewed as quite a complex concept, but it fundamentally remains instrumental to a brand fulfilling its competitive potential. A popular definition of brand equity is that of renowned marketing theorist and Professor David Aacker, who defines brand equity in his book ‘Managing Brand Equity’ as:
“A set of assets or liabilities in the form of brand visibility, brand associations, and customer loyalty that add or subtract from the value of a current or potential product or service driven by the brand.” (Aacker, 1991)Put simply; brand equity represents the value of a brand. It is the simple difference between the value of a branded product and the value of that product without that brand name attached to it (Rosenbaum-Elliott, 2015).
Brand Loyalty and Brand Awareness
The loyalty to your brand is when a consumer or client believes in your brands values and what you have to offer. Because of this loyalty to your brand, consumers will make repeat purchases of either your service or product. The trust in your brand flows into repeat business instead of looking to an alternate brand.
High brand loyalty ensures that business is stable and consistent and enables the organization to capture a larger market share. It really is the core of any business success. At Fresco, we are always educating our clients on the importance of building a strong brand visual with their logos and brand assets. Once you have the basis of a strong aesthetic and you add that to customer service or journey that is second to none, you are well on your way to creating strong brand loyalty and awareness.
In a nutshell, brand awareness is how recognizable your brand is in the market. Brand recognition and awareness are a similar things. To get this part right you need to seek the guidance of a branding specialist, a graphic designer that is skilled in bringing your brand vision to life, a graphic designer that listens to your dreams and goals and then creates an identity that speaks to your audience.
A brand with high brand equity will always be front of mind when a customer needs a particular product or is asked for a recommendation. This is because you always want your brand to be in a prominent position in consumers’ and clients’ minds.