What is Brand Equity

Many viewpoints regarding brand equity are available. However the concept of customer based brand equity is the one in which the authority of the brand is in the hands of the consumers. It is what they have perceived and sensed from their experiences that will influence the success of the healthcare brand. It can be said that the success of a brand depends on what lies in the minds of the consumers. In healthcare industry, consumers experience the products and services on a regular basis.  The biggest challenge in front of the healthcare providers in order to create a strong brand is to create a sound and distinct position in the minds of the consumers. It is important to make sure that the consumers get a positive experience form their healthcare products or services. Healthcare marketing is also important in this aspect and it is essential that the marketing programs are developed keeping in view the customer needs and their perceptions.

Customer based brand equity is based on consumer’s response to marketing strategies of the brand. This ultimately depends on the effect that brand knowledge has on the consumer. When consumers have a pleasant experience with a healthcare brand and its marketing ways, they react more favorably to it. This creates positive customer based brand equity. For example, patients are happy with medical services in a hospital and with their ways of marketing like conducting free medical camps, arranging patient education seminars etc. This creates more satisfaction among patients and increased awareness regarding the hospital as a brand. Thus this brand knowledge and preference make the patients to react in a more favorable manner thereby creating positive brand equity for the hospital.

Positive brand equity gives an added advantage to a healthcare brand when it comes to additional developments. Consumers are more willing to accept a new brand extension of an already existing healthcare brand with positive brand equity. For example, a healthcare company has a good quality, well marketed health drink and has created a special place in the minds of its consumers. Thus, it has positive brand equity and is now aiming at entering into the area of baby care products. In this case, consumers will more willingly accept and look forward to using the new products as well. This is based on the positive past experiences and the brand knowledge that the consumers have regarding the original healthcare brand.