9. ―Latent value in the mind of customers that
is exhibited through its impact on behavior.
Positive equity results in behavior that benefits
the brand through purchase frequency, brand
loyalty, price insensitivity, willingness to
recommend and more.‖
--
Dr. Tom Reynolds & Carol Phillips, ―In Search of True Brand Equity Metrics: All
Market Share Ain‘t Created Equal‖, paper in review, Journal of Advertising
Research
13. Brand valuation is one type of measure
and a relatively new one
It has risen in prominence as the brand‘s contribution to the market capitalisation of an
organisation is appreciated.
http://www.slideshare.net/pjcollings/measuring-brand-value-patrick-collings
14. What the Experts say
(in terms of measuring brand value)
Equi- Inter- Equi- Inter-
Aaker Keller Y&R Trend brand Aaker Keller Y&R Trend brand
Associations x x Market Trend x
Awareness x x Mktng Support x
Org.
Brand Trend x Associations
Perceived
Differentiation x Quality x x xx
Dist. Coverage x Perceived Value x
Esteem x Personality x x
International x Price Premium xx
Knowledge x Relevance x
Leadership x xx Salience x
Legal User
Protect’n x Sat./Loyalty x x xx
Market Share x Stability x
Sources: D. Aaker, Building Strong Brands, 1996; K. Keller, Strategic Brand Management, 2003
15. BrandAsset Valuator (BAV) is Young & Rubicam's
comprehensive global database of consumer
perceptions of brands: 350,000 consumers,19,500
brands, 44 countries, 173 studies since 1993
The BAV research is based on four key pillars:
differentiation, relevance, esteem and knowledge
16.
17.
18.
19. A Better Approach
• Linking customer perceptions and market performance
to impact on financial value to assess ROMI.
Activity & Customer Perceptions Market
Program Metrics & Behavior Performance
ROMI
Financial Value
20. A Better Approach
• Multiple measures at different levels of the value chain,
benchmarked and tracked consistently over time:
Activity & Customer Perceptions Market
Program Metrics & Behavior Performance
•Marketing Investment •Brand awareness •Sales
•Program Quality •Brand familiarity/associations •Market share
•Clarity •Brand evaluations/attitudes •Price premium
•Relevance •Customer acquisition/ •Profitability
•Distinctiveness conversion •Price elasticity
•Consistency •Customer retention •Expansion success
•Channel expansion •Attachment/Loyalty
21. A Better Approach
Activity & Customer Perceptions Market
Program Metrics & Behavior Performance
ROMI
Financial Value
•Stock price
•P/E ratio
•Market capitalization
•Brand contribution (i.e.,
CoreBrand index)
22. Brand Equity vs Value
―(For most companies) the question is less what their
brand is worth than what their brand could do for
them in terms of revenue and profit. …gaining an
understanding of the causal activities related to the
changes would make brand equity measures more
actionable.‖
--Dr. Tom Reynolds & Carol Phillips, ―In Search of True Brand Equity Metrics: All Market Share Ain‘t Created Equal‖,
paper in review, Journal of Advertising Research
See also: ―The Best Global Brands‖, Businessweek, August 4, 2004; ―Microsoft, GE top brand equity study, BtoB,
1.19.04. and ―Don‘t Waste Time with Brand Valuation‖, MarketingNPV.com, October 2004
29. New Ideas in Measurement
• Net Promoter Score
— Fred Reichfeld, The Loyalty Effect
• Customer Equity
— Roland Rust
— Sum of the lifetime values of current and future customers
• Customer Income Flows
— Don Schultz
30.
31.
32. Key Takeaways
• There Is No Silver Bullet
— Each company may require unique measures
• Use a mix of measures
— Include perceptual (knowledge), financial impact and behavioral
(loyalty) measures
— Tie measures to strategy – what behaviors and attitudes drive
brand value for customers and investors?
• Consistency is Key
— Movies work better than ‗snapshots‘
— Build knowledge over time
• Prioritize
— More likely to suffer from too much data than from too little
