Business Brand Equity and Personal Social Capital
Brand Equity
Brand Equity is the net result of successfully positioning the Value of a product, service, company and/or person.
Recently, we updated the Wikipedia discussion on Brand Equity to state:
Brand equity is the value that customers and prospects PERCEIVE in a brand. It is measured based on how much trust a customer has in the brand. The value of a company's brand equity can be calculated by comparing the expected future revenue from the branded product with the expected future revenue from an equivalent non-branded product. The difference, usually profit, is how much customers TRUST the brand, and are willing to pay above and beyond the price for other competitive brands with lower value perceptions.
From years of involvement with marketing, we have learned that the issue for a company that wishes to succeed is the same as that of a person who is trying to become successful – building a high level of trust through PERCEIVED VALUE to create long-term relationships.
Marketing (including all forms of advertising, promotion and “image-building”) is about initial Trust - getting positive attention and generating interest in “hearing more.” It creates the perception of value and sets the stage for presenting the offer. Brand equity is the net result of fulfilling initial trust and demonstrating value - “closing the deal” by delivering the promised value – proving that there is LOT of WIIFM.
|
Brand Equity on a Personal Level – Networking and Social Capital Networking is the personal version of marketing, it is the ACTIVITY that generates favorable attention (again, creating the perception of value.) Social Capital is the result – delivering the results stated in the offer to validate the perceptions of Trust and Value -- creating LONG-TERM RELATIONSHIPS.
|
|