| Measuring brand equity allows a company to | | | | marketplace" (i.e., current and prospective |
| establish a baseline and track changes in its brand | | | | customers). While historical financial performance is |
| equity over time. If a company consistently | | | | important in understanding brand strength, it does |
| works to improve the strength of its brands, it | | | | not tell the whole story, especially in terms of |
| must trace progress, or risk "flying blind." Changes | | | | what the future might hold for the brand. This |
| in a quantitative measurement of brand equity | | | | potential deficiency derives from the choices |
| can show the company the effects of its work, | | | | made in defining brand equity.Scott White is |
| and greatly aid in setting marketing and | | | | President of Brand Identity Guru a leading |
| management priorities in the next business | | | | Corporate Branding and Branding Research firm in |
| planning cycle.Once a brand equity measurement | | | | Boston, MA.Brand Identity Guru specializes in |
| system is established, a company can better | | | | creating corporate and product brands that |
| understand and therefore determine if equity in a | | | | increase sales, market share, customer loyalty, |
| given brand can be leveraged or transferred to | | | | and brand valuation.This Article may be freely |
| an entirely new product or service category. | | | | copied as long as it is not modified and this |
| Thus, a firm can increase the return from the | | | | resource box accompanies the article, together |
| investment in building a particular brand over time | | | | with working hyperlinks.Over the course of his |
| by extending that brand's equity into new | | | | 15-year branding career, Scott White has worked |
| categories.A company may want to measure its | | | | in a wide variety of industries: high-tech, |
| brand equity to aid in assigning a monetary value | | | | manufacturing, computer hardware and software, |
| to a brand. Wall Street measures the strength of | | | | telecommunications, banking, restaurants, fashion, |
| a brand by looking primarily at current and | | | | healthcare, Internet, retail, and service businesses, |
| historical financial measures, with minimal use of | | | | as well as numerous non-profit organizations. |
| information directly from the "voice of the | | | | |