In the world of commerce, there are many companies engaged in production, sales, and marketing. But when it comes to brand value, it is not possible to talk about all of them. Because brand value is not a phenomenon that can only be created by performing commercial activities. In order to create brand value, all details from product quality to customer relations must be considered. For example, selling online is not enough to create a brand in e-commerce. No matter how high the sales are, brand value cannot be created unless every piece that creates value is not in place. So how is brand equity created?
What is Brand Value?
Brand equity basically refers to the financial value of a company. A brand’s sales figures, income, potential sales force, and all the financial inputs it may generate in the future are the factors that determine the brand value. But financial items are not the only factor that makes the company in question have a high value. Communication with consumers, customer loyalty, user experience, and similar details also play a role in determining value. Therefore, it is necessary to pay attention to these details in order to become a brand in traditional or e-commerce. Brand value also shows a company’s investment power and reliability.
What Elements Does Brand Value Compose?
Brand equity components can actually be listed as a long list. Because almost every action of the brand can affect this value. While it’s important to produce quality products or provide impeccable service, any customer’s experience can have a huge impact on value, whether positive or negative. The factors that directly affect the brand value can be examined under three main headings.
Brand information means much more than the information at the definition level of the relevant brand. Customer-side information, not brand-assigned information, influences this value. Brand information; It is possible to divide it into two parts, brand awareness, and brand image.
Brand awareness refers to the extent to which the brand is in the consumer’s memory. of the consumer; Recognizing the logo, slogan, color, and similar identity elements of the relevant brand and being able to make comparisons with its competitors through these details are also indicators of awareness. If a consumer can recognize the brand based on the small details he sees in the shopping experience or the advertising process, it can be said that the brand is successful in awareness. Awareness is a phenomenon that covers the brand’s recognition and memorability.
Brand image can be defined as the whole of the beliefs that the consumer has about the relevant brand. Brand value increases or decreases depending on the rate of beliefs being positive. The emotions felt by a consumer who sees the brand’s logo, advertisement, or products and the associations in the memory determine the degree of positivity of the image. Some situations that affect brand image are as follows:
- Products produced by the brand; durability, price, and similar qualities in the minds of the consumer
- Reminding the consumer of what kind of benefits the brand’s products can provide
- The brand carries and reflects the ethical and operational values of the company.
- The brand has some human characteristics (young, old, serious, sincere, etc.) and makes connotations to the consumer in this regard.
- The brand has an identity that can reflect the user base and give an idea about which people might prefer the brand.
Consumer Attitude and Behavior towards the Brand
How existing or potential customers behave towards a brand and what kind of attitude they display are among the elements of brand equity. The general attitude of the consumer towards the brand is very important in the value determination process. Even if a brand makes a significant profit, it cannot increase its value if it cannot establish the right relationship with the consumer.
Attitude towards the brand is related to how the brand is evaluated in memory. Even a social project that the firm participates in or does not participate in can affect this attitude. Consumer behavior towards the brand refers to the commercial steps taken after the attitude. In other words, the extent to which the attitude towards the brand transforms into a buying or not buying action affects the brand value in line with consumer behavior.
Brand loyalty is a concept that informs the number and continuity of a consumer’s repeated purchases. Consumers adopt some brands more than others and often prefer the products of those brands during the shopping process. This is an important sign of loyalty. Customer loyalty; depends on the communication with the consumers, the marketing language, and the quality of the products/services. For this reason, brands with a large loyal customer base do not have problems in the sales process despite their prices being well above the market.
In the definition of brand equity, which is frequently used in the academic field, the present value of the potential financial inputs of a brand or its creator that may arise in the future is mentioned. This brings the market share to the top of the brand value calculation criteria. The value of brands, which have a significant share in the market they are in, is on the rise. The high market and share value of the brand is also affected by the market share. Therefore, it is an important parameter for the total value.
Why Is Brand Value Important?
Among the details that affect company revenues, brand value is a factor with large dimensions. Considering both the material income and the moral gain in the eyes of the consumer, it can be clearly seen how important this concept is. The globalization of information and capital, as well as developing technology, facilitated the production of goods and services. This allowed even small-scale enterprises to produce. E-commerce, on the other hand, helped every brand, regardless of scale, reach customers and even open up to the world.
Considering these situations, creating a brand is actually not that difficult. However, it is not possible for every brand created to be valued. Especially in the e-commerce environment, the consumer can easily find a product suitable for their budget. When choosing among a large number of options, consumers consider not only the budget but also the value of the relevant brand. It is extremely important to increase the brand value in order to be preferred by the consumer, to have prestige, and gain an advantage in the competitive environment.
How to Increase Brand Value?
To increase the value of a brand, proper brand equity management is required. The operational team that carries out the management in question should have people who have experience and competence on issues such as what brand value means, what it is affected by, and how it is built. So what can be done by this team to increase brand value?
Audience analysis is beneficial in many ways. From the point of view of brand equity, it is effective for building customer loyalty, positive attitude, and behavior towards purchasing. Thanks to target audience analysis, communication strategies can be created correctly along with product, sales, and marketing. Correct communication with the consumer as a brand is a situation that increases value.
Creating a Corporate Brand Identity
Establishing a company, and producing and writing a brand name on products is not enough for brand identity. In order to create an identity, attention should be paid to every detail, from the logo to the advertisements, from the packaging to the language of communication. Even brands that use sincere communication language should not compromise their corporate identity. When a corporate identity is created, the logo, slogan, and similar details about the brand remind the consumer of the brand. This is among the factors that form the basis of the increase in brand value.
Importance of Social Media Platforms
For many industries, regardless of age, gender or location, most potential customers are active on social media platforms. Social media has significant power in both traditional and e-commerce. Social media platforms, which also make a significant contribution to the promotion, advertising, and marketing processes, are also useful in communicating with the consumer. Using instant messaging instead of official correspondence has a positive effect on consumer behavior that increases brand value. The important thing is to use social media actively and correctly.
Importance of Customer Service
Among the factors that directly affect the value of a brand in the eyes of consumers is the importance given to customer service. This factor is also important in the general market value along with the brand value in the direction of the consumer. Customer service should be easily accessible. In addition, it is useful to provide support to customers not only before and during the sales process, but also after. The fact that customers who have shopping experience can communicate easily and efficiently with the brand positively affects consumer attitudes and behaviors.
Advertising and Marketing Studies
In order to increase the brand value and maintain its stability, attention should be paid to advertising and marketing activities. The main purpose of these studies may be to sell. However, there should also be studies aimed at promoting, expressing, and transferring identity and ideas. One of the simplest examples of this is the Atatürk-themed advertisements published by brands on days like 10 November. Brands that do not sell a product related to Atatürk also publish such advertisements, and appealing to the moral values of the consumer can increase the brand value. It is also important to determine the brand value in order to carry out the advertising and marketing activities effectively. Efforts to increase or protect the existing value may be beneficial.