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Brand Equity Building - Measuring Brand Value

Measuring brand equity allows a company toprospective customers). While historical
establish a baseline and track changes in itsfinancial performance is important in
brand equity over time. If a companyunderstanding brand strength, it does not
consistently works to improve the strength oftell the whole story, especially in terms of
its brands, it must trace progress, or riskwhat the future might hold for the brand.
"flying blind." Changes in a quantitativeThis potential deficiency derives from the
measurement of brand equity can show thechoices made in defining brand equity.Scott
company the effects of its work, and greatlyWhite is President of Brand Identity Guru a
aid in setting marketing and managementleading Corporate Branding and Branding
priorities in the next business planningResearch firm in Boston, MA.Brand Identity
cycle.Once a brand equity measurement systemGuru specializes in creating corporate and
is established, a company can betterproduct brands that increase sales, market
understand and therefore determine if equityshare, customer loyalty, and brand
in a given brand can be leveraged orvaluation.This Article may be freely copied
transferred to an entirely new product oras long as it is not modified and this
service category. Thus, a firm can increaseresource box accompanies the article,
the return from the investment in building atogether with working hyperlinks.Over the
particular brand over time by extending thatcourse of his 15-year branding career, Scott
brand's equity into new categories.A companyWhite has worked in a wide variety of
may want to measure its brand equity to aidindustries: high-tech, manufacturing,
in assigning a monetary value to a brand.computer hardware and software,
Wall Street measures the strength of a brandtelecommunications, banking, restaurants,
by looking primarily at current andfashion, healthcare, Internet, retail, and
historical financial measures, with minimalservice businesses, as well as numerous
use of information directly from the "voicenon-profit organizations.
of the marketplace" (i.e., current and



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