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Why Brand Equity Is Important

When we speak to clients and potential clients the most common question and discussion we have is increasing sales. Working with different brands across different sectors we realised that different brands have different perception about marketing. When you want to increase your company sales you need to consider your brand equity. Let’s dive a bit deeper and ask ourselves what is brand equity:

Brand Equity is what will make a consumer choose your brand over another brand. Every brand has a perceived value by consumers over the products. The equity of your brand is very important because if your brand has a positive brand equity you can charge more for your products and services than the generic products or other competitors. There are brands that have negative brand equity that’s why consumers are more inclined to pay more for generic products or services.


There are several components that break down brand equity:

  • Tangible and intangible value of the brand. The tangible value includes revenue and higher pricing and intangible value includes brand awareness of the brand and the story associated with the brand.
  • Perception that your brand creates for quality. Higher quality translates to pricing and lasting value. Apple and Ted Baker is a great example: if you have visited an Apple Store you will notice that they are always crowded. Apple products are considerably more expensive than their competitors but their reputation for quality and easy operation is well known. When you think of Ted Baker your mind goes to quality because everything they do and the way they communicate shouts quality. Their branding is spot on and they make you want to buy from them.
  • Clients are the most important aspect of brand equity, do you know why? Because clients determine the value of a brand. Consumer loyalty is how brands are build and need to be a focus on your marketing strategy.

There are different factors that affect brand equity:

  • Brand Loyalty
  • Brand Association
  • Trust
  • Brand Awareness
  • Perceived Quality

If we want to increase brand equity we need to increase our customer loyalty and associate your brand with better quality and increase consumer awareness of the brand. We can advertise Sarah Shoes for example but this strategy will not help us increase brand equity because we are advertising Plain Sarah. This strategy might help us increase sales, but nothing else, it will not help us increase brand equity. The other option is to advertise our shoes with a story, with a feeling and associate Sarah with something that goes beyond shoes. We are not advertising Plain Sarah anymore, we are advertising Sarah with Character. So all your efforts and energy goes into acquiring more clients and connecting with them on an emotional level.

When a brand has a positive brand equity it’s ‘easier’ to sell to clients because they are sold on the brand, they trust the brand, they know the brand and they are more likely to buy from that brand. When the customer doesn’t know the brand you need to increase your ad spend to convince the client that you are the right choice for their needs. With content marketing you can story tell and speak about your values, show behind the scenes and create a meaningful connection with your clients.


Business leaders want to increase sales instantly, which is possible of course but their budgets will be wasted if it’s not done effectively. Before we sell something we need to consider that first we need to create trust, build our story, demonstrate quality and show clients why we are different. Yesterday I was leaving the office and while driving home I saw three outdoor ads from different brands. The first ad was Plain Sarah showing her leg with a pair of shoes and the price next to the shoe, the second ad was Plain Maria’s (leg) with a pair of shoes and the price next to the shoe, it was a similar advert as the first just different brand. The third billboard was Jessica with Character wearing clothes with confidence, if I was a woman I would want to be Jessica and I would definitely buy the shoe, the third ad was from H&M. The first two brands will need to spend an enormous amount of money on ads to convince Louiza to buy their shoes, on the other side H&M will not.

The bottom line is to sell something we need to remember that building brand equity is not an easy task and it rarely happens overnight but it’s fundamental to build a viable and sustainable brand. It should involve a robust and diverse brand strategy, an amazing story and communicated on multiple marketing channels.

If you are interested in improving your brand image or building brand equity for your business give us a call at IQD Agency on 22 101 935 or contact me on an at 

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