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Brand Equity is simply the extra money that a certain product earns or the premium a certain product gets just because of being associated with a certain brand.
The Value of a brand or brand equity depends on
- change in market share
- profit
- recognition of logo
- frequent use of brand by the public
- consumers’ view of the brand
Brand equity is created by investing strategically in communication channels and creating market awareness. This leads to an appreciation in brand equity through economic growth in profit margins, market share, and value. Normally, these investments grow over time to bring a return on investment (ROI).
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