| Brand equity can be defined in many different ways. | | | | perceptions of a brand. |
| I have developed a simple, yet powerful, definition of | | | | The ability to retain customers is largely experiential. |
| brand equity. For a brand to be strong it must | | | | High equity brands exhibit stronger levels of |
| accomplish two things over time: retain current | | | | customer satisfaction and loyalty. History has shown |
| customers and attract new ones. To the extent a | | | | that consumers will continue to buy a brand that |
| brand does these things well, it grows stronger | | | | offers them "their money's worth." |
| versus competition, and delivers more profits to its | | | | The ability to attract new customers is largely |
| owners. | | | | perceptual. Because customers do not have actual |
| Breaking down the definition of "brand equity" into its | | | | brand experience, they must go by what they hear, |
| two components, we can more easily determine a | | | | see and believe about a brand. The two primary |
| reliable way to measure brand equity, and to track | | | | ways the market receives this information is through |
| changes in brand equity over time. The components | | | | messages controlled by marketing, such as |
| of brand equity, retention and attraction of | | | | advertising and PR efforts, as well as uncontrolled |
| customers, stem from people's experiences with and | | | | messages such as press stories and "word of mouth. |