The article ‘Brand Equity: Why Social Media is your Best Asset.’ basically talks about how certain assets or liabilities are connected to the brand and how it is represented as brand equity or rather brand value. Using celebrity Michael Jordan as an example to boost Nike’s brand equity due to his huge success in his basketball career despite him retiring from it. The article also mentions how social media affects brand equity as well as the effect of ‘word of mouth’ on a brand. Furthermore, it discusses how some conversations between the consumer and the brand affect the brand equity.
The company with brand is the one to benefit from brand equity as it increases sales and reduces marketing costs by making the brand well known in the market as mentioned by DePersio, G. (2015, May 04). In order to create a positive change to the brand equity of a company, there must be a proper positive conversation between the consumer and the brand and this relationship must be maintained for the company to receive a positive brand equity. The place where brand equity is mostly needed is in the social media platforms where it is considered as the new form of having conversations as stated by Evans, S., Manchipp, S., Kent, C., Domenz, B., D., & Etzkorn, I. (2017, March 13). Social media has a very large impact on a brand and its equity, be it positive or negative. The company will know they have succeeded, in terms of increase in brand equity, when the consumers easily recognize the brand through their logo, symbol or slogan just like Nike as mentioned in the article, where people recognize the swoosh logo and their slogan “Just Do It”.
The reason there is a need for brand equity and its connection to social media is because, according to the article, social media affects the brand-consumer relationships and the brand’s social status helps develop the brand value through these conversations.
The idea of social media/conversations and brand equity not only helps the company in terms of brand reputation but also helps the consumers by allowing them to trust the brand and make them feel a sense of joy or accomplishment through the brand and that, in turn, provides consumer loyalty to the company as well as create a powerful ‘word of mouth’ statement from the consumers.
Certain aspects of the critical analysis above have shown good marketing strategies that could be used.
One point is about social media, where the company would focus on developing the conversation between them and the consumers, for example they would reply to comments and post more about the brand and products.
The second point is understanding the power of ‘word of mouth’, where the company satisfies the consumer and in return they spread the word about the brand to many people. This method is much more successful as it is hard for consumers to ignore as it is spread around quite often, according to the article.
- Smith, K. (2016, March 08). Brand Equity: Why Social Media is your Best Asset. Retrieved March 14, 2017, from https://www.brandwatch.com/blog/brand-equity-social-media-is-best-asset/
- DePersio, G. (2015, May 04). What are some of the benefits of positive brand equity? Retrieved March 14, 2017, from http://www.investopedia.com/ask/answers/050415/what-are-some-benefits-positive-brand-equity.asp
Evans, S., Manchipp, S., Kent, C., Domenz, B., D., & Etzkorn, I. (2017, March 13). Brands Should Embrace Conversation. Retrieved March 14, 2017, from http://www.brandingmagazine.com/2017/02/03/brands-should-embrace-conversation/