Advantages of Strong Brand Equity

By Donovan Tinsley
Principal of Tinsley Creative

Brand Equity has a value that should not be underestimated. Strong brand identity can bring your organization very real and measurable business benefits. Consider the opportunity for better and increased….

  • Positive brand equity can certainly allow you to charge more for your product or service. People are often willing to pay a premium for a quality and trusted name—just as they pay a premium for example, for electronic equipment with an apple on top. Is the quality of those products significantly superior to their competitors? Maybe, maybe not. But the perception is that they are. And when customers are willing to pay extra for a name they trust and/or value, that boosts your profit margins.Question to ask yourself: Does your brand image/reputation make you easily trusted more so than the competition?
  • Customer loyalty. This is crucial for many reasons. Customers are not only willing to pay more for a product with strong brand equity; they’re also willing to stay loyal to a company for years, coming back to buy again and again. In fact, some companies have built such strong brand loyalty that even when they hit a bump in the road—a defective product or a bad customer experience—their customers are willing to stick with them.Question to ask yourself: Do you have long-term customers/clients who will stick by you if you make a misstep?
  • Positive brand equity can certainly assist a company or organization’s long-term growth. With a strong perceived value of your brand, you can easily add new products or service offerings and people will be more trusting. You can expand into new markets, and people will easily recognize your brand, make an instant positive connection, and follow you.Question to ask yourself: If you’re planning something new or an expansion, can you leverage your company’s reputation as a positive influence?
  • Negotiating Power. Positive brand equity can give you a considerable advantage in negotiating with vendors, manufacturers and distributors.Question to ask yourself: Do you believe your company’s brand equity (its reputation) gives you more negotiating power with vendors?
  • Competitive advantage. Do you know who tends to be the unhappiest about a company’s strong brand equity? Competitors. When customers are willing to pay a premium price for your products or services…when customers will try your new products sight unseen, just because it has your logo on it…when customers in a new market flock to you simply because of the reputation you’ve built elsewhere…when you can get better pricing from the same vendors your competition is using, that can mean very good things for your business and not-so-good things for your competition.Question to ask yourself: How does your company’s brand equity compare with your competition’s?

Do you have a plan to take your Brand to the next level?

Start by asking yourself those key branding questions

  • In your market, does your reputation make you more easily trusted than the competition?
  • Do you have long-term customers/clients who will stick by you if you make a misstep?
  • If you’re planning to expand, can you leverage your company’s reputation as a positive influence?
  • Do you believe your company’s brand equity gives you more negotiating power?
  • How does your company’s brand equity compare with your competition’s?

If you need assistance with your Brand give us a call.

Donovan Tinsley

Donovan Tinsley

principal at Tinsley Creative
Donovan has spent literally his entire professional career in the business with over 20 years of Advertising Management & Marketing experience; the past 15 as an agency principal. He is responsible for the day to day business operations within the agency, including account management and new business development. Dedicated & passionate are words used by clients to describe Donovan’s efforts to bring success to their advertising & marketing goals. “Our greatest reward as an agency is to assist our clients in reaching their full brand potential.”

Donovan has four children, is an avid golfer & LOVES to Barbecue.
Donovan Tinsley

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