Jordan Retro 13 Brand Equity What Can Be Generated

The influence, however, may be a result of strong mental association with the brand built up over time. When brand loyalty is high, sales tend to remain stable over a considerable period of time,[link widoczny dla zalogowanych], if not following a growth. A strong brand also enjoys good distribution, because intermediaries become interested in carrying the brand, even in case of fierce competition for shelf space, because consumer demand is high. Having a good share of the market, the company can charge a high price because price-elasticity becomes less pronounced in this situation. All contribute to a high net profit for the company.
A high brand equity enhances brand loyalty, trade leverage, price and margins, supports marketing programs and provides a platform for brand extensions, thus creating higher value to the company in forms of profits. A brand can take up three different roles. Firstly,[link widoczny dla zalogowanych],[link widoczny dla zalogowanych], it acts as a magnet that attracts new customers to the company. Secondly, it acts as a cue that reminds customers about the company and its products and services. Thirdly, it acts as a binding thread that can attach the customers to the company through an emotional tie.
Brands are traditionally placed at the center stage by most of the marketers, while brand equity plays the role of a hero that can add value to a product. This is nothing but a product-centered approach. The role of brand equity, however, will depend on the level of customer involvement, nature of customer experience and the extent to which it is easy for the customer to evaluate the quality of the product before buying.
Role of Brand Equity
A strong brand, having high brand equity generates high revenue for the company. When a brand possesses high equity, it has more influence on its customers, making them more loyal. As a result, market share increases.
Brand equity results from a strong mental association that the customer links with the brand. This association emanates from brand awareness, which triggers a memory linked to the brand. The attitude toward the brand, created out of this strong bond, develops into a strong liking or preference towards the brand over time. The preference, most of the time, may even go beyond any objective consideration of the product. Thus the preference gets biased on the basis of emotion and effect - how people 'feel' about a brand - and eventually generates brand equity.
Value of a brand totally depends on the individual customer, and how he/she builds up the relationship with the brand. Brand equity, thus, can be considered as the sum of customers' assessments of a brand's intangible qualities. It, therefore, may not be a true measure of the marketing efforts of a company.
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