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  • Irwin Soh

[Part 5 of 5] 6 Compelling Reasons To Invest In Branding

Previously in part 4, we dive into two reasons of how branding help businesses thrive. For the final part of this series, we will focus on the last reason revolving around brand equity.

Reason 6 - Growing Your Brand Equity

Branding improves your customer perception of your brand by ensuring it is well differentiated while ensuring a positive experience with your products and services. This helps to grow your brand equity which has its benefits as described below.

Understanding the concept of brand equity can change how you perceived your overall company. The value of your products and services is intertwined with brand equity.

Brand equity refers to a value premium that a company generates from a product with a recognisable name when compared to a generic equivalent.

- Adam Hayes, Investopedia

Brand equity comprises of three elements:

  1. Customer Perception

  2. Positive or Negative Effects

  3. Resulting Value

Whenever your customers have good perceptions upon interacting with your brand touchpoints, it generates positive effects, leading to resulting values such as increased profit margins and brand awareness. Your brand equity grows along with this process.

Apple has built its strong brand equity over the years.

From an overall standpoint, a strong brand equity means the company has positioned itself as a trusted source for its niche of products and services. It brings the customer's focus away from price while providing a high perceived value on its products and services. This enables the company to not compete in prices and be resilient in price wars.

Being established as a trusted brand builds loyalty. Competitors will find it extremely difficult to win over customers that are loyal to your brand. Hence, it is necessary to ensure you have a strong brand equity and branding helps to grow it.


The six compelling reasons that we have covered in this series have shown the effects of branding on a business. From empowering businesses to attract ideal customers to increasing efficiency in closing sales and marketing efforts. It is no doubt an investment which provides your business a platform of strength and maximises opportunities to fulfil your business potential.

Although branding is not a magic pill that will solve all business problems and often perceived as high cost, it will be seen as good value when your returns exponentially increase over the years into the future.

Thank you for reading this series of 6 Compelling Reasons To Invest In Branding. Do stay tuned for more branding insights and observations in the near future!


Content Page Click below to read others

[Part 1 of 5] - Introduction + Definition Of A Brand [Part 2 of 5] - What Does It Mean To Do Branding + Attracting Your Ideal Customer [Part 3 of 5] - Closing Sales Efficiently + Increasing Value Of Your Products & Services [Part 4 of 5] - Saving Time & Cost On Marketing Efforts + Boosting Credibility [Part 5 of 5] - Growing Your Brand Equity + Conclusion + Summary


Apple Products Photo by Julian O'hayon on Unsplash

References: Brand Equity by Adam Hayes, 3 May 2019 (


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