Definition

brand equity

This definition is part of our Essential Guide: IT channel sales and marketing strategy for the digital era
Contributor(s): Bianca Rawson

Brand equity is the perceived value of a known name, logo or other identifier. Brand equity affects an organization's ability to market products and services that brand represents.

The premise of brand equity is that sales strongly correlates to consumers' perceptions of, and past experiences with, a particular brand. There are various methods for building positive brand equity, including memorable marketing campaigns, building brand recognition with free trials or simply producing an excellent product or service. Influences that can harm brand equity include faulty products, poor customer service or a marketing campaign that is executed badly.

This was last updated in January 2014

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