Brand equity means the value of your brand. How much your brand isreferred by your customer. How much trust your customer have in your brand. Will your customer choose your brand even having choice of other brands. Will your customer buy your product even if you charge more than your locompetitors. If question for all these questions is yes. That means you have a very good brand equity. Your brand is the king of your domain but if the answer of these questions is NO. It is a matter of concern.
Establishing the Brand equity and Maintaining Brand equity are two different things. They both requires different strategy. If you are a startup or a new comer you should focus on establishing your brand equity. Try to acquire more and more customers and satisfy them to your best. They will automatically become your unpaid promoters. They will refer you to others. In initial stage. don’t focus on making more profit just keep acquiring customers and become a well known name in your market. Once you are established and having enough trust among your customers then slightly start increasing your price. This very crucial make sure your customers have genuine trust in your brand and they are okay to pay more for it or come up with a new product with increased price.
MARKETING IS TELLING SOMEONE TO BUY YOUR PRODUCT AND IS THE REASON FOR THEM TO BUY
If you are a established firm. Then obviously you to focus on maintaining your Brand equity. There is always a chance that a new comer can capture your market. Maybe be your competitor can come up with very cheap substitute for your product . What you will do in this condition? Either compromise on gross margin or plan your marketing strategy in such a way that you can convince your customer that you are best and providing best value for what they pay. For example there are very cheap mobiles available but still apple remains the premium brand because they have that brand equity and brand value among customers.