{"id":5808,"date":"2021-06-15T08:39:00","date_gmt":"2021-06-15T08:39:00","guid":{"rendered":"https:\/\/viralmango.com\/?p=5808"},"modified":"2021-06-15T08:39:00","modified_gmt":"2021-06-15T08:39:00","slug":"brand-value-vs-brand-equity","status":"publish","type":"post","link":"https:\/\/viralmango.com\/blog\/brand-value-vs-brand-equity\/","title":{"rendered":"Brand Value vs Brand Equity"},"content":{"rendered":"\n

In this day and age, the business world is saturated with countless terms explaining every little phenomenon. It becomes easier to confuse them when they sound similar too. Two terms that are some of the easiest to mix up are brand value vs brand equity. They are very similar, but definitely not the same. In reality, brand value is dependent on brand equity. How? Read this article to find out all about each term, their differences, how they work together, plus tips for building them up at the end.<\/p>\n\n\n\n

What is brand equity?<\/h2>\n\n\n\n

Before getting to the differences between brand value vs brand equity, let\u2019s learn about each of them separately. So, what is brand equity? It is the esteem of a brand according to the perception of customers. This assessment may be the driving force in getting you sales instead of your actual product.<\/p>\n\n\n\n

Although brand equity is invisible, intangible, and difficult to measure, it can be witnessed in the behavior of customers. Having higher brand awareness, more loyal customers, and associations with your brand will lead your brand equity to be higher. This significance of a brand is developed over time through satisfying customers and surpassing their expectations. Ultimately, your customers are the only major influencers behind your brand equity.<\/p>\n\n\n\n

Brand equity can be both negative and positive. What is the difference?<\/p>\n\n\n\n

What is positive brand equity?<\/h3>\n\n\n\n

When a potential customer walks around the supermarket and has to choose between brands of, let\u2019s say toilet paper, they are going to choose the one they recognize most. So when your product is easy to recognize and has a positive association, you will have positive brand equity. This will lead to better brand visibility in the market, ultimately leading to a growth in sales.\u00a0Plus, with a good brand name<\/a>, your customers will be willing to pay a premium to purchase your product. So, your profit margin will benefit from it too.<\/p>\n\n\n\n

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What is negative brand equity?<\/h3>\n\n\n\n

If the brand has a negative image or makes the customers feel negative emotions, they have negative brand equity. This means that customers would rather buy something with no name whatsoever than be a consumer of your product. In other words, negative associations with your brand may end in a huge decline of sales.<\/p>\n\n\n\n

What is brand value?<\/h2>\n\n\n\n

Now that you know what the brand\u2019s equity stands for, let\u2019s answer the question of what is brand value? Brand value is the valuation of a brand in monetary terms. It\u2019s more straightforward for understanding and measuring. Ultimately, it depicts how much it would cost to buy a certain brand. It depends on the market forces, product quality, your accessibility, pricing, performance, advertising, and most importantly, brand equity. There are many ways of putting a number on a brand, including but not limited to future cash flows.<\/p>\n\n\n\n

What sets brand equity & brand value apart<\/h2>\n\n\n\n

Now that you\u2019ve learned what each of the terms means, let\u2019s go deeper and talk about what sets them apart. We\u2019ve divided it into 5 categories to show the main differences.<\/p>\n\n\n\n

Monetary vs intangible<\/h3>\n\n\n\n

The most basic differentiator between brand value vs brand equity is their measurement scale. Brand value is measured in monetary terms, and you can actually put a number on it. On the contrary, brand equity is intangible. You can\u2019t count it on your fingers or assign a numeric value to it. It is subjective, and only apparent in customer perceptions.<\/p>\n\n\n\n

Market-made vs customer-made<\/h3>\n\n\n\n

The second factor setting them apart is how they are calculated. You can measure brand value only through the market, meanwhile, brand equity can be measured by the customers and their perceptions.<\/p>\n\n\n\n

Performance vs recall value<\/h3>\n\n\n\n

Brand value can become apparent in a brand\u2019s achievements and quality of products. In contrast, having positive brand equity can be seen in how fast customers can remember and recognize your brand.<\/p>\n\n\n\n

Valuable vs emotional<\/h3>\n\n\n\n

Companies build up their brand value by creating valuable products for their customers. As for brand equity, it is developed by conveying emotions and awakening feelings in the customers\u2019 minds.
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Financial status vs market position<\/h3>\n\n\n\n

Here is another main contrast between brand value vs brand equity. On one hand, brand equity evaluated how successfully you\u2019ve established your market position, meanwhile, brand value shows how well you managed to take advantage of your brand equity and generate profits from it.<\/p>\n\n\n\n

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Is brand equity connected to brand value?<\/h2>\n\n\n\n

Brand equity and brand value are separate terms, however, they do work together. In reality, the brand value depends on your brand equity. When a product has positive brand associations, the consumers\u2019 willingness to pay goes up. This means that you can have a higher profit margin, thus increasing your bottom line, and ultimately growing your brand value. Brand visibility also indirectly increases your sales, again leading to a higher brand value.<\/p>\n\n\n\n

Tips for building each of them<\/h2>\n\n\n\n

Now that you\u2019re able to differentiate brand value vs brand equity, it\u2019s time to put it to good use. After all, why did we learn each of their meanings? To achieve stable growth for your company, developing your brand value and brand equity is a must. Read on to discover some ways that you can grow your brand worth and image.<\/p>\n\n\n