What is the brand's capital?

The brand's ability is an intangible value of a particular company or a product based on consumer brand perception. Many factors contribute to the brand's own capital, including advertising, consumer reviews and publicity. The strong capital brand tends to be known and many consumers positively. This helps to create the perception that its products or services are better than the products of less known brands.

There are three levels on which your own capital can be measured: company level, product level and consumer level. At a fixed level, the brand's own capital is measured as a financial asset by deducting all other measurable variables; What remains is called its own capital. When evaluating the product level, its own capital is calculated by deducting the price of a generic product from the price of the equivalent brand product. The rest is the value of the perception of this brand on the market. Measurement at consumeres level on brand recognition and opinions instead of trying to quantify capital financially.

Improvement of perception

brand management and product management divisions will usually be actively looking for a strong brand on the market. One of the common methods of acquiring equity is through advertising campaigns that promote the brand, even if they do not try to sell a specific product. For example, television advertising could include inspiring news or celebrate the holiday rather than promoting society itself, but viewers could have a positive response to commercial and combine this feeling with society, which will improve its perception and capital of the brand.

external factors

messages that are delivered through advertising are created by the company, unlike other factors that affect the brand capital, but are out of control of society, drought such as messages or product reviews. Depending on the source, this could affect the brand positively or negatively. AktiOutside they follow positive reviews and news articles, but can be damaged by negative publicity or reviews.

Dominance on the market

Companies and products that have the strongest capital are companies that have the highest market share and profits, as well as companies that existed for the longest time. Certainly a sign of high capital is to use a specific brand to refer to any products of a particular type. For example, referring to any face tissue as KleenEx® or any toy flying disk like Frisbee® shows high capital of these brands in their respective categories.

brand extension

brand extension, starting the product in a new category using an existing brand is a common method of using high product or brand capital. For example, a company that produces Popular Brand of Candy could expand this brand by creating a new ice cream that tastes or contains candies. Products extension products withThey also call spin-off products and can be found in many categories.