Brand equity refers to the intangible value associated with a brand name and the loyalty and perception it holds. It is influenced by factors like goodwill, quality, and price. Brands are valuable assets that can increase a company's financial value. There are three ways to measure brand equity: financially by price premiums, through brand extensions, and based on consumer attitudes and experiences. Building brand equity requires introducing the product with quality, making the brand memorable, and maintaining a consistent image over time through marketing mix elements like quality, price, and distribution.

1. Brand EquityBrand equity in marketing refers to the intangible features associated with a product. It is often the name of the product with which we associate a product.

2. The intangible features can be the Goodwill of the business, the brand loyalty by the people, the quality of the product, the price that the company charges, etc.

3. All these come under the category of Brand Equity. Brand EquityStudies have shown that Brands are one of the valuable assets of a company. It is one of the factors which can increase the financial value of a brand to the brand owner.Brand Equity for a product is an essential feature, as every customer asks for it. For ex: How good the company is in the industry, what is the level of quality that they maintain, how the customers of the product feel.

4. Brand EquityThere are at least three ways to perceive a brand. Financial Brand extensionsConsumer-based

5. Brand EquityFinancial: A better way to find the brand equity is to check the price a brand commands over other or ordinary brands. The extra price that the consumers are willing to pay for a branded product over an unbranded product is the brand equity of the product.Brand Extensions: Another way is to see whether a company is launching a product or a similar product on the lines of its prior brand. Ex: Apple launching i-pod and now i-pad after its successful brand establishment of its prior brand i.e. macbook. Consumer-based: A strong brand increases the consumer’s attitude towards that particular brand. The attitude towards the product is built by the prior usage or experience with the product. If the product is better than other generic products, then definitely the consumer will pay the higher price to own the product.

6. About Brand EquityBuilding and managing Brand EquityPeter H. Farquhar in his paper Managing Brand Equity, outlined the following three stages that are required in order to build a strong brand:Introduction: Introduce a product with best quality, with the strategy to use the brand as platform to introduce new products.Elaboration: Make the brand easy to remember and use, so that the consumer will not forget the product and will definitely get back to you.