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Marketing Refs
Concept

Brand Equity

Brand equity is the commercial and perceptual value created by a brand's associations, salience, trust and differentiation.

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Also EquityMarketing Refs Editorial, reviewed by Marketing Refs Review DeskBrand & Positioning2 sources

Decision model

Brand equity = awareness + associations + trust + preference

How it works

Brand equity can improve pricing power, conversion rates, retention and channel efficiency.

Key takeaways

  • Use Brand Equity when the decision depends on memory, differentiation and category meaning.
  • Pair Brand Equity with related concepts before changing strategy, budget or execution.

Where it is used

  • Brand & Positioning planning
  • Campaign review
  • Team alignment

Used by Marketing teams · Growth teams · Students

Examples

  • A brand & positioning team uses Brand Equity to turn a vague marketing discussion into a specific decision with owners and evidence.
  • A manager links Brand Equity to adjacent concepts before changing a campaign, journey, budget or operating process.

Common mistakes

  • Using Brand Equity as jargon without tying it to a decision, owner or measurement signal.
  • Treating Brand Equity as isolated from adjacent concepts that change how it should be applied.

Questions

What is Brand Equity?
Brand equity is the commercial and perceptual value created by a brand's associations, salience, trust and differentiation.
When should marketers use Brand Equity?
Brand Equity should be used when it clarifies a marketing decision, owner, workflow or measurement question.
What is a practical example of Brand Equity?
A brand & positioning team uses Brand Equity to turn a vague marketing discussion into a specific decision with owners and evidence.

Sources

NextBrand Awareness vs Share of Voice

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