Discussion Question
Identify the three (3) components of a brand equity management system and describe the importance of each of the components. Then, explain the difference between brand tracking studies and brand equity management.
Introduction
The brand equity management is a good process for the company for the brand sustainability. The brand equity is a brand value, which is derived from the customer perceptions and experience regarding the brand instead of product and service. In the modern business era, the company may get the competitive advantage through valuable brand equity, which provides a good customer response in the competitive market.
Three (3) components of a brand equity management system
Three components of brand equity are as under
- Brand Awareness
- Perceived quality
- Brand loyalty
Brand Awareness
In the brand awareness, the management knows the need of customers, which are to be fulfilled by the brand management. The management has to maintain the informative customer in this competitive business era. For Instance, the brand equity can be justified through awareness regarding the benefits and features, which also helped the customers in making the buying decisions.
Importance
The brand awareness is important because it makes the customer assertive in the market, which increases the buying decisions and sales process.
Perceived quality
Perceived quality is another brand equity component. Different customers in the market perceive the brand quality according to their perceptions, thoughts, and thinking. Some brands are liked by customers, and conversely, some brands are not liked, and it justifies the perception regarding the quality.
Importance
The Perceived quality provides a rationale for using the brand. If the brand contains the highest quality according to the expectations of customers, the customer can make the preferences and make repetitive buying decisions
Brand loyalty
The brand loyalty is in the limelight, as a customer in the market, despite having some substitutes, will prefer the current brand. Obviously, in the brad management, equity process, the loyalty can be increased through quality, features, pricing, and differentiation.
Importance
The brand loyalty is important for any firm because it prevents the customer conversion in the presence of different substitutes. Brand loyalty enables a long-term relationship with customers, which create a direct impact on the firm’s financial performance.
Difference between brand tracking studies and brand equity management
There is a difference between brand tracking studies and brand equity management. The difference is as under
| Brand Tracking | Brand Equity Management |
| The brand tracking is a process of observing or tracking the performance of the brand | Brand equity is a process of creating a value for the brand |
| The brand tracking enables the effective monitoring brand results in the competitive market | The brand equity management enables the monitoring of brand value and perception of people to make several decisions |
| It is a measurement of a brand development by using some key variables such as ad awareness and many other | It is a process of brand development, which can be enabled through variables such as brand awareness, loyalty, and quality |
| Attention, intentions and current experiences are drivers at the brand tracking in an organization |
The drivers of brand equity management are brand awareness, brand loyalty, and perceived quality |
Thus, when implementing these processes in the company, it seems imperative to understand the difference to obtain some good results. The brand tracking and brand equity management are two different processes, which lead towards the brand success and sustainability.
Conclusion
In the end, it is to include that the brand equity management process can lead towards the competitive advantage. Due to brand loyalty, perceived quality awareness, the brand management can make some exceptional decisions about brands. To strengthen the brand in the competitive market, the company can enable a good tracking with the passage of time, a complete check on the brand performance in the presence of other substitutes is important to make the difference.
+447462439809