Monday, February 22, 2010

"My brand's bigger than your brand" - How would you really value your brand?


Brand valuation is regarded by many marketers as providing the definitive proof of the business value of marketing. The various brand rankings by value released each year attract plenty of attention. What does the differences in results and methodology of the rankings produced by different financial papers, conclude to marketers?, for example, Coca-Cola's 2008 valuation varied from $45bn to $67bn, what does this mean?

The truth is that, A brand is worth nothing if people aren't willing to pay for it. There's no revenue stream. So the key component in this brand-value equation must be the consumer. The real value of an existing customer varies according to that customer's level of engagement with the brand."Fully engaged" consumers are more likely to repurchase the brand and recommend it. They are also more willing to pay a price premium in spite of the price incentives offered by competing brands.

Hence, regardless of the methods used to put a price tag on a company's brand, company should pay more attention on the needs and feelings of the consumers, who are responsible for the rise and fall of those billion dollar brand valuations.Brand assets aren't owned by the company or by the firms that assign a dollar value to those assets. They're owned by the consumer. So your brand should Listen to them, and learn.
source: http//gmj.gallup.com/content/24922/managing-value-your-brand.aspx#2

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