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Marketing vocabulary · Branding & Positioning

Brand equity

Meaning in marketing, with examples

nounCommon term

In marketing, brand equity means: The extra value a brand name adds to a product, such as the higher price or stronger loyalty a well-known brand gets compared with an unknown one.

In Turkish: marka değeri, marka denkliği

How it is used

Used in strategy, brand tracking and academic marketing. Brands build, grow or erode brand equity over many years. It is related to brand value, which usually means the financial value of a brand as a business asset.

Example sentences

  1. Years of strong brand equity let us charge more than supermarket own brands.

  2. Constant price cuts can slowly destroy brand equity.

Common collocations

  • build brand equity
  • strong brand equity
  • erode brand equity
  • brand equity model
  • brandThe name, design and reputation that make a company or product recognisable, together with the ideas and feelings people connect with it.
  • brand loyaltyCustomers' habit or wish to keep buying the same brand again and again, even when competitors offer similar products or lower prices.
  • brand awarenessHow well people in the target market know and recognise a brand, for example whether they can name it without help or recognise its logo.
  • premium pricingSetting prices higher than competitors on purpose to signal quality, exclusivity or status, so that the high price becomes part of the brand's appeal.

More terms: Branding & Positioning

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