Dave (2002), puts it that "The Brand Equity measure summarizes consumer perceptions on five dimensions: Familiarity, Uniqueness, Relevance, Popularity, and Quality." From this, it is apparent that the promotion point and reputation of any company and products is hinged on the brand equity.
Why companies fail in brand equity
All it takes to shrink a brand in today's hyper-linked global network is a single mistake and errant behavior. For instance the recent challenges that IBM and the Toyota brand faced simply due to a defect in their product.
The challenges extend beyond erroneous policies and errant behavior. Global brands must also contend with the fundamental reality that consumers tend to prefer domestic brands over foreign brands. Studies show that home-grown brands get preference over the foreign brands. In some of the world's biggest and richest markets (the U.S., Germany and Great Britain among them) the demand of local brands is especially prominent. If a company is not cognizant of this fact, then it will automatically fail to create brand equity and consequently lose out on the brand community.
Comparatively few companies...
As a necessity such a commitment is an indispensable building block for an unsurpassed global brand. From the most senior management through the ranks, there must be an understanding that brands matter and that building brands is a complicated task requiring ceaseless observation, creativity and monetary investment. For most marketing-oriented companies like Microsoft, Procter & Gamble, and Disney etc. this comes naturally.
For effective brand equity, there is a necessity of efficient advertising as well. If the strategies to keep the brand afloat exclude advertising, there is a likelihood of the brand holding water for a shorter basis. In order to achieve the short-term and long-term effect of the brand in tandem, advertising in the various modes is essential.
References
Dave W. (2002). Building Brand Equity Through Advertising. Retrieved on April 11, 2010 from http://www.ipsos.com/asi/sites/ipsos.com.asi/files/pdf/rc5.pdf
Kenneth J.R, (2010). Creating the Preeminent Global Brand. Retrieved on April 11, 2010 from www.lippincottmercer.com/pdfs/s95_creating.pdf
