Brand equity is a top component of a company’s overall success, according to a new report.
The study, by the Association of National Advertisers, found that 75% of marketers view brand equity as “very important.”
Not only that, but companies are using a number of media channels to build brand equity in their respective firms. Traditional media was the top choice in boosting a brand, primarily TV at 76%, followed by Internet advertising, the study found. Some 56% of respondents said banner ads were also useful.
“Brand equity is a key component of a company’s value and its future success,” said Bob Liodice, president and CEO of the ANA, in a statement. “In today’s marketplace, brand marketers need to be aware of the potential challenges their respective brands face.”
Marketers must also keep a watchful eye out for warning signs that their brand may deteriorate. The top five include:
*Customer conversion or repeat versus competitor slips (70%)
*The percent of customers who rate the brand as “excellent” drops (68%)
*Net promoter score slips (67%)
*Growing disparity between customers ratings and company’s brand goals (62%)
*The product is sold at a discount or price reduction (62%)
Marketers, however, can combat brand deterioration largely with product innovation, according to 87% of survey respondents. Another 68% said exploring new targets and 67% said conducting a root cause analysis were important.
Still, 66% said deeper qualitative research, including focus groups, was key to rebound a brand followed by a new focus on marketing efforts (64%), the study said.
The ANA surveyed more than 300 marketing professionals in February for the study. It will present a panel discussion on the survey results April 24 at the 2007 ANA Brand Innovation Forum.
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