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The term โBrand Equityโ is quite a popular term that is used in marketing and it explains the value of a brand name. It is generally believed that the owner of a branded company is expected to enjoy high revenues as products of his or her company tend to sell more because of the popularity of their brands.
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The importance of Brand Equity
There are a number of elements present in Brand Equity and some of these elements include marketing assets, brand associations and market fundamentals. It is these elements that distinguish one branded company from another and are also quite effective in influencing the perception of a customer regarding a particular brand.
If the customerโs opinions about elements of a particular brand is positive then the brand equity will also be positive, if not then the brand equity will be negative. When you are doing your homework on this topic you might face problems so you can get in touch with myhomeworkhelp.com at this point of time. They will surely provide you with Measuring Brand Equity Homework Help.
It has been observed that the company that has positive brand equity tends to generate more revenue and also increase better cash flows. These companies create this positive brand equity by allowing licensing and extension and by imposing a premium pricing.These contribute a lot, in the retention of certain valuable customers and also reduce cost of customer acquisition considerably.
Today most companies understand importance of Brand Equities and as a result of this they try every possible way to create a positive Brand Equity in the market. They try to adapt certain tools and strategies that will help in reaching their goals of creating a positive Brand Equity.
Impact of positive brand equity on shareholders
If a company has positive brand equity then the shareholder value of that particular company definitely increases. So it is very important to properly measure the brand equity of a Company. The success or the failure of a particular company depends a lot on the brand equity.
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