Q3A · Analyse elaborately the concepts of ‘Brand Equity’ and ‘Brand Positioning.’

Answer

Brand equity: value added by the brand

Definition. Brand equity is the additional value or response associated with a brand name and its accumulated awareness, associations, perceived quality and loyalty.

In simple words. Same category mein naam ki wajah se extra preference milna.

Understand it step by step

1. Awareness: people can recognise or recall the brand when choosing.
2. Associations and perceived quality: relevant, distinctive and credible meanings can reduce uncertainty and build preference.
3. Loyalty: satisfactory experience may support repeat choice; it does not imply that every buyer is permanently loyal.
4. Consequences: equity may support preference, price tolerance or acceptance of a new offering. It is not identical to sales revenue, a logo or a precise financial valuation.

See it in use

Positioning and repositioning

Definition. Positioning establishes a relevant and distinctive place for a brand in the target audience’s mind relative to alternatives. Repositioning deliberately changes that intended place or association.

In simple words. Kiske liye, kya benefit, competitors se alag kyun?

Understand it step by step

1. Target and frame: say whom the brand serves and which category or alternatives it competes with.
2. Benefit: select a relevant promise rather than a random list of features.
3. Reason to believe: provide product evidence or a credible demonstration. Distinctiveness without credibility is weak.
4. Repositioning: may address a changing audience, new need or changed competitive context. It is not simply changing the logo or entering any new category.

See it in use