Brand equity is an intelligible asset. It is the amount of trust and credibility that consumers have in a brand. It takes years to build up brand equity. Companies such as Nike, Amazon, and a number of luxury automakers have built up lots of brand equity. When these companies come out with a new product, instead of creating a completely new marketing campaign, they are able to leverage their existing brand equity. This means a more cost-effective marketing campaign can be created. Companies have to be careful to protect their brand equity. What took years to create can easily be destroyed in just a few days with the wrong communication or actions.
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