Brand Equity Defined
Brand equity can become
one of the largest
assets on a companies
and ultimately lead to increased
"Brand equity relates to the fact that
different outcomes result from the marketing of a product or service because
name or some other brand element that if that same product or service did
not have that brand identification."1 It represents the marketing
effects uniquely attributable to the brand and the added value endowed to a
product or service as a result of past investments in the marketing activity
for a brand. "Brand equity serves as the bridge between what happened to the
brand in the past and what should happen to the brand in the future."
Brands that have been well engineered have also
been heavily invested in creating both tangible and intangible worth.
Create Customer Value: 10 Lessons from Konosuke Matsushita
"A brand for
a company is like a reputation for a person.
You earn reputation by trying to do
hard things well." ~
has steadily increased its spending on
advertising and promotion to make its
and build brand equity. By 2003, the brand of Amazon.com was worth US$ 22
billion. "A brand for a company is like a reputation for a person. You earn
reputation by trying to do hard things well," says Jeff Bezos, the Founder
Brand Management Case Studies and Success Stories
Brand value is calculated as the net present
value of the earnings the brand is expected to generate and secure during
the next year. Brand valuations are a powerful measure of an organizationís
ability to create real and lasting value for shareholders.
Brand value reflects the value created by a
company for its customers. Brand recognition means that people just
recognize the brand name. Leading companies care about brand value, not
brand recognition. Building brand value is like earning respect: you cannot
buy it, you have to earn it.
Thought Leader ,
Richard Branson and
Jack Ma, add a
great amount of value to the brand equity of his or her firm.
execution of a
content marketing strategy driven by thought leadership
increases the value of the company dramatically.
Measuring Brand Equity
There are many ways to measure you brand
equity. You can measure it at the firm level, at the product level, or at
the consumer level. A more complete evaluation of the brand equity can
occur if multiple measures at all the three levels are used...