Brand Equity--or trademarks, if you will, are very important to a business.
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The perception of a brand is related to the equity it has. Amber (2000) has defined brand equity as an intangible asset built by marketing, and which exists largely in the heads of stakeholders, especially those of the end user. The author further pointed out that if a company got its brand equity right, profits shall largely take care of it. The import of this statement can be understood from the components that make the equity of a brand. These are brand awareness and brand image. A brand that people have good knowledge about and can readily recall with favorable associations is an enduring asset to whoever owns it. Furthermore, it would have favorable image and therefore well perceived. Such a brand can be said to have a higher equity or value. It is not too difficult to sell products and services with this brand name tacked on it. Higher volumes of sales at minimal costs transcend into higher profits.
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