Brand Identity vs Brand Equity: Difference and Comparison

Branding is a complete effort toward establishing trust in the market. It requires a meaningful logo and commendable service at the back end to reach the customer.


Business Quiz

Test your knowledge about topics related to business

1 / 10

In case of death or insolvency of a partner the firm is?

2 / 10

Who takes no active part in Business?

3 / 10

Importing goods for the purpose of re-export is termed as ___________.

4 / 10

Productivity means how much was done compared to what it took to do it.

5 / 10

A firm which outsources its works requires ___________.

6 / 10

Which of the following is not an economic activity?

7 / 10

Whose liability is limited to the extent of value of business assets and his private assets?

8 / 10

The management of the company is entrusted to __________.

9 / 10

A Company is called an artificial person because _________.

10 / 10

Whose Liability is limited to the extent of his capital to the firm?

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The value of a company majorly depends on branding. It is an external as well as an internal factor for a business.

While external connect more with the customers, internal aspects connect with employee motivation and sustainability. A brand can be considered a factor of recognition by the people.

It is a collective effort from the product ideation until the sale conversion.

Establishing a brand name and sustaining the same is a crucial criterion for any business to progress. In that context, two necessary jargon, Brand Identity, and Brand Equity come into the picture.

Brand Identity delivers a message to the customers, while brand equity sends a letter to the business owners.

Key Takeaways

  1. Brand identity is the visual, verbal, and emotional elements that represent a brand and differentiate it from competitors. In contrast, brand equity is the value derived from consumer perceptions, recognition, and loyalty toward a brand.
  2. The company creates brand identity and involves the logo, color schemes, and messaging elements. In contrast, brand equity is built over time through consumers’ experiences, associations, and expectations related to the brand.
  3. Both brand identity and brand equity play crucial roles in a brand’s success, but brand identity focuses on the elements that define and represent the brand. In contrast, brand equity concerns the value and reputation a brand has built among consumers.

Brand Identity vs. Brand Equity

Brand identity refers to the visual and communicative elements that distinguish a brand from its competitors, including its name, logo, design, and messaging. Brand equity refers to the value that a brand brings to a company beyond its tangible assets that can lead to increased customer loyalty.

Brand identity vs Brand equity


Comparison Table

Parameter of ComparisonBrand IdentityBrand Equity
PerceptionCompanies focus on the target audience to understand the brand through Brand Identity.It is the value of the product perceived by the customer.
OwnerThe company develops itCustomers are the stakeholders
VisionIt looks for the future growth of the companyIt gives appropriate feedback on the reach level of the product in the market
StrategyIt flows from top to bottom from the corporate strategyIt flows from bottom to shelter from the customer review and works out the negatives to convert them into positives.
ElementsColor, Design, and PrototypeThe customer mindset and product Market


What is Brand Identity?

Brand identity refers to how a corporation desires the buyer to understand the complete details of a product or a brand.

The identity represents the outward expression of a ‘complete’ entity, thus elementary to consumers’ recognition and differentiation from competitors.

The identity includes the visible parts of a complete design, like colors, logotype, name, and image. These parts establish and distinguish the ‘complete’ within the mind of consumers.

Additionally, complete identity cares for the brand’s vision, mission, culture, positioning, temperament, and relationships.

Thus, complete identity is a corporation or a company’s desire to be perceived by the market, not essential, but it’s perceived. It is a name, a design, or a value that is expected to be imbibed in the public’s minds.

In different words, it’s some way of outwardly expressing the vision to the people. A well-developed brand and transparent communication can lead to an increase in brand value.

There are many models for researchers to assess a brand’s identity, e.g., the B2B complete leadership model.

brand identity

What is Brand Equity?

Brand Equity is the assimilation of the brand in people’s minds. This is a critical parameter that aids the development of any company. Brand Equity talks about people’s take on a particular brand. It may result from the product or the brand by itself.

Put, people voicing out excellent or bad reflects on the brand directly. The remark or the feedback may be for a product under the brand, but what does it impact? It is brand value.

Brand Equity revolves around 3 main aspects.

  1. Client mind-set
  2. Product-market
  3. Money market.

Understanding Brand Equity from a client’s mindset is as follows. Brand equity depends on the client’s or the customer’s

  1. Brand awareness
  2. Brand image
  3. Perceived quality
  4. Brand loyalty

Analysis of Brand Equity is carried out to understand the reach. It becomes vital for any organization to make informed decisions about its product.

The client-customer relations in a B2B sector are not different from B2C, except that brand loyalty is not considered during the analysis.

However, while equity will be measured by taking the client’s market perspective, in most cases, it offers the corporate a broader and additional objective image of how their customers/buyers understand the whole.

brand equity

Main Differences Between Brand Identity and Brand Equity

  1. The main difference between Brand Identity and Brand Equity is that the former focuses mainly on the product, design, and launch idea. In contrast, the latter focuses on the quality of the product received by customer reviews.
  2. Brand Identity focuses on highlighting the product features, but Brand Equity focuses on highlighting the brand value in the market.
  3. Brand Identity helps to build customer loyalty across the product business, but Equity charges more on products and services.
  4. Brand identity is for audience knowledge and passion, but brand Equity is for building customer relationships.
  5. Brand Identity is independent, and Brand Equity depends on Brand Identity.
Difference Between Brand Identity and Brand Equity
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