Knowing the key difference between Brand Identity and Brand Equity and how both are highly important for a business can help bring recognition and sets it apart from the competition.
The differentiation between brand equity and brand identity lies in the scope of each concept.
So, what really is the difference between both?
What's Brand Identity?
Brand Identity has to do with how the minds of the target audience perceive the brand itself.
Meaning it is how the company wants the target audience to view the overall brand.
The brand identity is not only just about the image, but it is also about the personality, an emotional attribute, relationship, and even culture that the consumer can perceive from the brand.
Companies should always be reinforcing the brand identity with positive and unique communication tools through advertising, packaging, color, design, etc.
A positive brand identity can expand brand value to help boost its goodwill.
What's Brand Equity?
Brand Equity refers to the value that the company generates from their product or service with a recognizable name.
Most companies demonstrate brand equity by making them memorable, easily recognizable, and superior in quality and reliability.
Brand equity is the value accrued through impact at three primary levels: Customer Market, Product Market, and Financial Market.
Usually these three brand characters of brand equity can improve brand loyalist.
When it comes to the target’s mindset, brand equity is the most complex part of the overall branding of a company.
At the end of the day, knowing the key difference between Brand Identity and Brand Equity and how both are highly important for a business can help bring recognition and sets it apart from the competition.
The Brand Model
A positive brand identity can result in adding more value to brand equity. They work together.
And yes, which then leads to an increase in brand loyalist.