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Brand Equity
What are the difficulties in determining brand equity? How would you
determine its value for a specific company?
One of the primary difficulties in measuring brand equity is deciding on
the technique to be used for the valuation, and second, accumulating the
data to complete the valuation analysis. Three of the most common
approaches to defining brand equity include brand valuation, price premium
analysis, and stock performance correlation (Market Research Executive
Board 2005). What make the valuation of brand equity also challenging are
the significantly different approaches taken to measuring it. The first,
and the most commonly used with packaged goods, nondurable goods, and
selected durable goods brands including automobiles, is the definition of
brand equity as measured by brand awareness, familiarly, image, and
loyalty. For many business-to-business (B2B) companies that data driven
approach is more of a foundation for brand equity measurement, including
the definition of brand profitability, the use of market share, time-to-
market measures of performance, and annual marketing spend as it relates to
defining the value of a brand. The methodologies behind consumer-driven
versus data-driven approaches vary by company yet both share a common
result of quantifying in financial terms the value of a brand.
In determining the value of a brand, its critical to first select a
methodology that fits with the specific type of company that is working to
increase the value of the brand. Consumer-driven factors that define brand
equity value vary significantly from those from data-driven methodologies
as defined by (Market Research Executive Board, 2005) and the specific
examples of Interbrand and BrandFinance. Ascertaining the best methodology
for measuring the value of a brand needs to take into account segmentation,
financial forecasts, brand value and brand risk analysis to arrive at a
reasonable and accurate valuation of a brand.
Reference:
Market Research Executive Board (2005) - Overview of Brand Equity
Measurement Approaches. Market Research Executive Board. September, 2005.
Washington, DC. September, 2005.
Brand Equity Measurement Consumer perceptions extensively influence and manipulate their purchasing behavior. Service and goods companies identify the significance of marketing strategies in influencing consumer behavior. All brands that attract high profits have desirable loyalty levels among customers. Customers tend to have a high level of perception of quality of goods and services that dominate markets in different industries. The power that emanates from consumers' goodwill and recognition of a brand,
Then soon other players came such as Pepsi who also tried to penetrate the market. With the introduction of Pepsi into the market, the market share was divided, sales volume for both commodities went low and the prices also lowered. The product life cycle of some of these products may go far beyond the expected limit, and this is attributed to the brand equity they have. Use of Interactive television
The fur aspects of loyalty, perceived quality, identity of the brand and awareness all must be unified at the operational level of a business (Aaker, 1996). Who a company really is gets communicated in its millions of customer interactions daily. With the pervasive adoption of social media, there is an exceptionally high level of transparency today. This is seen in the Dave Carroll episode of the broken guitar (Perkins,
Companies that have invested in defending their brand and managing the customer experience outside of their website have seen great returns. Within the travel industry, for example, companies such as InterContinental Hotels Group and Royal Caribbean Cruises have both extended their reach to manage the customer experience on partner sites with a very high degree of success. In each instance, their efforts have resulted in an improvement in the
This stage provides comprehensive information for use in marketing and promotional plans. Dave (2002), puts it that "The Brand Equity measure summarizes consumer perceptions on five dimensions: Familiarity, Uniqueness, Relevance, Popularity, and Quality." From this, it is apparent that the promotion point and reputation of any company and products is hinged on the brand equity. Why companies fail in brand equity All it takes to shrink a brand in today's hyper-linked global
Coke's Brand Equity One of the most important factors for all firms is protecting and improving their brand image. This is because the favorability of a company and the products / services they are selling will have an impact on sales. As a result, the most successful corporations will harness this strategy in order to effectively reach out to large demographic of customers. In the case of Coca Cola, they have been