What is Brand Equity?
Brand equity is the shared value between a brand and its customer base. It is built on a customer’s perceived value of the brand, both in terms of quality and emotional attachment that they have toward that brand. It is an important marketing concept because it allows businesses to see how their efforts to develop customer loyalty – and positive customer value – can have an effect on their bottom line.
What is Brand Identity?
Brand identity is the way a company expresses itself to its customers and potential customers. It is how a company distinguishes itself from its competitors, by making its services, products and customer experience unique. A strong brand identity ensures continuity and consistency between different channels, like in physical stores, websites, ads, and more.
Significant Elements of Brand Identity
Brand identity is made up of several components. The following are the most critical elements to consider when building a strong brand identity:
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Brand Strategy – The brand strategy is the fundamental groundwork that outlines the purpose, mission, and values of the business.
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Logo Design – A logo is an essential part of a company’s visual identity. It is usually the first thing potential customers will see when they interact with the brand. It expresses the company’s core values, its target audience, and the promise it keeps to them.
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Brand Colour Palette – Focuses on consistent use of colour throughout all the visual expression of the brand.
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Typography – This element of the brand identity ties together the different design elements and helps ensure uniformity and consistency when communicating with the customer.
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Voice and Tone – understanding the audience, the message that needs to be communicated, as well as the medium and channels where the message will be transmitted helps you choose the proper voice and tone for the brand.
Building Brand Equity through Effective Brand Identity Management
Brand identity and brand equity are closely linked and building a strong brand identity is one of the best ways to build brand equity. When done right, a well-defined brand identity allows businesses to communicate the right message, target the right market, and build long-term relationships with customers.
Here are a few tips on how to effectively manage and improve your brand identity:
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Know Your Brand – Before starting to develop your brand identity, you first need to identify who you are and what you are trying to achieve.
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Clearly Define Your Target Audience – You need to know who your potential customers are before you can start to create a brand identity that will attract and resonate with them.
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Choose a Memorable Logo Design – Your company logo should be unique, instantly recognizable, and memorable. Study your competition and other businesses that are doing well and use those as reference points for what works and what doesn’t.
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Be Consistent – Develop a unique brand colour palette to help tie all of your visual elements together. Establish a set of rules for how your logo, visuals, and typography should be used, and ensure that all channels and mediums maintain the same look and feel.
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Create a Sound Brand Strategy & Mission Statement – A strong brand strategy will help form the foundation of your overall brand identity and tell customers what you stand for. Make sure that this strategy is communicated both internally and externally, so everyone knows what the brand stands for.
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Use Storytelling – Use storytelling to bring your brand to life and give it a personality. This can help to make your brand more memorable and cultivate a sense of trust and loyalty.
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Monitor Brand Performance – Track brand performance and measure what works and what doesn’t. Adapt your strategies and tactics based on customer feedback and brand performance.
The success of your business depends on how effectively you build and manage your brand identity. Take the time to explore and research to ensure that your customers are seeing the true personality, value and promise of your brand. With the right strategies and tactics, you’ll be able to create a strong, unique brand identity that resonates with your target audience and builds brand equity.
