Brand equity is defined as the difference between the actual value of a product (or service) that has a brand and the potential value of that product or service if it did not have a brand name or assets.
So a simple mathematical equation might look like this:
Brand Equity = (Real value of product or service with brand) – (Value of product or service stripped of its brand)
This is not easily measured—although it can be done—and part of this process would include the valuation of visual brand assets such as logos, trademarks and other visual communications outcomes.
So how does an organisation increase its brand equity? Well there are a number of ways to do this through marketing and one of them is ensuring the brand’s identity and other visual assets are well designed, consistent, engaging and most importantly meaningful to the real brand owners—the customer.
Marketing professionals and graphic designers can diagnose branding problems and propose creative solutions to effectively connect products and services to customers and other stakeholders.
Please feel welcome to contact me with your opinion, comments or questions related to this article.
Frank Stillitano MDIA
Accredited Designer and founder of Flux Visual Communication