Measuring Brand Equity
Trying to find out whether or not brand equity is difficult. One method marketing experts use is called as brand metrics. Brand Metrics measure return on branding investments. Attitudinal measures associated with branding may be used to track brand awareness, brand recall, brand recognition. To increase their power, these factors can be tied with other variables ( for example, brand awareness coupled with intent to buy ). Brand awareness may also be connected to use of ether the product class ( mustard ) or the brand ( Kraft, Grey Pounpon ). Remember that, when measuring brand awareness, brand recall and brand recognition, a brand can be recalled for negative as well as positive reasons.
In Quebec, a group of advertising agencies developed a measure, called “Equi* Marques.” To display the importance of brand equity to clients. The measure shows that American products, which are the receipts of greater marketing investments, score higher than Quebec-based brands in many instances. In other words, U.S. films have an advantage in Quebec due to brand equity. The head of the organization, Paul Pare, noted, “if Quebec brands want to penetrate the U.S. market, they’ll find themselves up against players who invest much more in marketing.” He called for a “quitet revolution” in the classroom and the boardroom to fend off this disadvantage.
Brand equity has also been studied on a global scale. The primary features of brand equity include the consumers’ sensory, utilitarian, symbolic, and economic need at the national and global level. Global brand equity can provide valid information, CEOs and other corporate leaders often want real, hard numbers. One such method is called revenue premium. The method compares a branded product to the same product without a brand name. To calculate a band’s revenue premium, the revenue generated by a particular brand is compared to a private label brand. The difference is the revenue premium or value, of the brand and would equity that has accrued. There are two problems with the revenue premium approach. First, it is sometimes difficult to pick the right benchmark private label to be used for comparison. Second, many private labels are no longer generic brands with no names. These private labels have some brand status and have built considerable brand equity of their own. Despite these drawbacks, the revenue premium is one of the best methods currently available to accurately measure brand equity.
- Cost-Based-Method for evaluating Brand Equity
- Replacement Cost- Method for evaluating Brand Equity
- Market Value Method for Evaluating Brand Equity
- Market Share Equalization Method for evaluating Brand Equity
- Price Premium Method for Evaluating Brand Equity
- Brand Knowledge Method for Evaluating Brand Equity
- Attribute-oriented Approach for evaluating Brand Equity