If you’re a business owner, one of the biggest routes to success is making sure that your product reaches as many people as possible. You also want to improve your customer retention, turning first or one-time buyers into loyal customers that will purchase from you for years to come. If you’ve considered ways to market your company successfully, then you’ve probably run across the term ‘equity marketing’ in your search. What is equity marketing, and how can it help your business?
First Things First – Brand Equity
To understand Equity Marketing, first we need to understand what Equity Marketing affects, namely Brand Equity. Brand equity is the amount of sway your brand holds with consumers psychologically, especially when compared to a generic product that is similar. Brand Equity rises when you are marketing a product that is memorable, easily recognizable, and more reliable (meaning of higher quality) than other competitors.
There are three keystone ideas when it comes to measuring and growing Brand Equity. The first is consumer perception, whether it be through the knowledge that consumers gain about your product from informational media or through marketing campaigns; or through their own experience with the product, having purchased and/or used the product previously. The second keystone is positive or negative effects that result from the consumer’s experience. If your brand equity is positive, then you can expect to see financial and product movement benefits, whereas a negative brand equity can harm profits and even put you out of business. Once you know about the consumer perception and the effects that it is causing, you can assign value (the third keystone) to your brand equity.
For example, if your product is losing sales to a generic product that’s similar, chances are that the effects of the consumer’s perception is negative, meaning that your brand equity is not doing so well. Conversely, if everyone knows about your product and will go to great lengths to obtain your product, your brand equity is high and you can reap the benefits!
How can Equity Marketing help?
Advertising on its own can help in the short term with small gains here and there, but if you’re going to be spending money on advertising you want to make sure that your message is reaching the right people who would be willing and able to purchase your product. Equity Marketing is designed to target your ideal customer base with specialized marketing that creates new sales opportunities within your current and prospective advertising bases. This kind of advertising is specifically designed to increase your positive brand equity with techniques such as multi-channel marketing, sales appointments, surveys for research and development, increasing customer retention by converting one-time buyers into life-long customers, and higher responses compares to direct mail or other advertising techniques. Equity Marketing companies will sit down and consult with you to see your specific marketing needs and help you lay down a road map to continued success and growth, custom tailoring the product to ensure that all your needs are met.