Brand Equity Vs. Brand Value: What Is the Difference?

Branding is a concept that needs to be clarified; usually, one term is confused with another; for example, brand equity is often confused with brand value.

Brand equity is the brand’s value in consumers’ minds, while brand value is the value the brand has built up on its own.

Let’s preview the difference between brand equity and value to determine how to do both consecutively.

What Does Brand Value Mean? Brand Value Definition

Brand values are the estimation of the brand’s worth. In general, the financial worth of the brand determines the brand’s values and worth.

It determines the marketing analysis to imply market value and financial values, and it also helps to predict the potential future of earnings.

It is based on the brand’s clarity, uniqueness, authenticity, commitment, consistency, and performance.

With the help of brand values, customers are willing to pay more for brands to get their products.

Brand value is the future cash flow of the brand, as it is the monetary value a customer assigns. 

Brand value exhibits environmental and social responsibility and provides quality customer services at a bargained price.

It helps to recognize customers and competitors. It determines the product that customers prefer and highlights the brand’s objectives.

Brand Equity Definition: What Is Brand Equity In Marketing

Brand equity is the brand’s importance in consumers’ minds. Generally, it is a set of assets and liabilities in the form of brand abilities.

It is mainly associated with customer loyalty because customers can add or subtract value from current or potential products.

Consumers’ ideas about the brand can alter the marketing and brand value. Equity is the additional value that a product receives because of the brand or manufacturer’s name.

Brand equity excludes revenues from direct and indirect customer-related factors. It enhances a brand’s performance and improves its perception in consumers’ minds.

Brand equity manages consumers’ attitudes and willingness to purchase a brand. It is formed by product, service, quality, channels, relationships, availability, price, performance, advertising, etc.

Good brand equity indicates a brand’s success, and its values indicate its total financial value. It is customer-focused and determined by consumers’ perceptions, experiences, and memories.

It usually occurs when customers establish brand associations, are loyal to the brand, identify it through referrals, and recall the product’s or service’s values.

Ways To Measure Brand Equity And Values

Analyzing competitors, their strategies, and brand management can help you measure the brand’s equity and values through competitive metrics.

You can also use preference matrices to calculate customers’ appeal and show what they like and are willing to spend more on.

You can also measure it through customer loyalty. You can check which customers are loyal to you, ask for their suggestions, and play out their mental space.

You can attract the right talent, investors, and people by raising brand awareness.

Frequent mention in local news, focus groups, surveys, reviews, and social media will boost your brand awareness.

Factors Customer Associates With Brand

Customers are your focal point. You must see your brand through their eyes and consider all the crucial things.

Positive feelings help to convey the message of loyalty towards the brand and vice versa, while negative feelings could lead to mistrust between the brand and consumers.

You can change and manipulate their emotions through the shape of logo designs and color psychology in logo design.

Positive feelings will showcase your brand as durable, desirable, and promising.

Tips To Improve Your Brand Values And Equity

Suppose you are looking for a way to improve your brand values and equity. Look no further. These tips will help you to do so.

Brand Values:

• Know the role of your brand in the market.

• Monitors the investments from brand equity.

• Compare your brand with the competition to analyze its success and weakness points.

• Keep up the quality and consistency of your brand.

• Prioritize user experience by putting your audience first.

• Persuade product marketing by making interactive videos of the products.

Brand Equity:

• Identify people’s perceptions of your brand.

• Understand the color palette.

• Try ways to boost the visibility of the brand.

• Prioritize the association between the brand and the customers.

• Focus on satisfying your customers. 

• Work on elevating brand loyalty.

• Try to decipher the typography using your brand’s font.

• Write the tone and firm voice of your brand.

• Practice or introduce new traditions that are unique to your brand.

• Design your social media according to your brand’s tone.

How To Create Brand Values

Brand values lead to brand equity. Building brand values can boost your brand equity. Here is a brief way to do so.

Market-driven or Customer-driven: The worth of the brand determines market-driven values, while customer values are equity. 

Customer Recall or Performance: It is determined by brand equity and how often customers recall the brand, depending on the product’s and brand’s performance.

Market Penetration or Brand Financial Success: If a brand is successful, it will automatically boost the product’s position

Emotions or value Adding: The brand’s feelings will add value to the products, and consumers will add value to the brands.

Other Factors That Matters 

Along with brand values and equity, it is also essential to consider other factors.

Brand Visibility

If your brand fails to come in front of your eyes every other time, how can your consumers know and add value to your brand?

If a brand has a bad reputation, it will badly impact your brand, leading your consumers to repel it. No one will want to work with you.

Brand Association

Associate positive feelings and memories with your brand because this will always maintain a good impression of your brand, and you will unconsciously build loyalty.

It is based on functional benefits such as brand personality, self-expression, organizational values, and emotional and social benefits.

Customer Loyalty

The flow of business for a current and potential product for customers. You can boost your loyalty by believing in the values that you offer. Evaluate the low-price products. 

Loyalty conceptualizes brand equity and justifies the added prices due to the brand’s equity. 

Conclusion

Key elements of brand equity and values are the brand’s ultimate values, the performance of the brand and product, the origin of the product or the brand, and the brand’s total financial success.

Both brand equity and values are branding strategies that can skyrocket a brand’s progress. The main difference between brand value and brand equity is that brand value is a variable, while brand equity is not.

You can always knock at our door for free consultation if you seek branding advice.

Explore More:

What Is Branding? Understanding Its Importance

What Is Corporate Branding? (Explained)

The History of Amazon Logo (Explained)