3ee2ecb731e04338f49edc37837471d0-2014 2.8 measuring and valuing brands

8/12/2019 3ee2ecb731e04338f49edc37837471d0-2014 2.8 Measuring and Valuing Brands

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Measuring and valuing brands

The secret power of brandsWeek 2


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How can you measure a brand?

If a brand is

A set of ideas in peoples minds That influences how they think, feel and act

And so creates commercial and social value

Then you can measure, at least in theory:

The strength of those ideas The change in how people act

The value created

I D E A L I S T

B E H A V I O U R I S T

F I N A N C I A L


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Measuring ideas


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Measuring ideas

Traditionally, these five things are measured:

A W A R E N E S SH A V EP O T E N T I A LC U S T O M E R SH E A R D O F Y O U ?

C O N S I D E R A T I O ND O T H E YC O N S I D E RW H A T Y O UO F F E R ?

P R E F E R E N C ED O T H E YB E L I E V E Y O U R E

B E T T E R ?

S A T I S F A C T I O ND O T H E Y H A V EA P O S I T I V EE X P E R I E N C E ?

LWRYF


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Measuring ideas

The advertising agency Y&R has a methodology called

BrandAssetTM Valuator which measures four things andcombines them to measure the strength of the brand:

YOUNG-RUBICAM.DE


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Measuring ideas

WPP surveys over 150,000 consumers each year to build its BrandZ

database, which measures these five things in its BrandDynamics Pyra

WPP.COM


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Measuring behaviour


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Measuring behaviour

Three typical behaviours to track are:

x xN U M B E R O FC U S T O M E R S

A V E R A G ES P E N D

F R E Q U E N C Y O FB U Y I N G

Influenced by Awareness Consideration

=

Influenced by Preference

Influenced by Satisfaction Loyalty


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Measuring value


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Measuring value

Tim Ambler of London Business School has defined a brand as an

upstream reservoir of future cashflowOn this view, the value of a brand can be measured by combiningits strength or equity with the likely future revenues it will generate

Three agencies use sophisticated techniques to create dollarvaluations for the worlds biggest brands

Their latest figures are on the next page


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Brand valuations, in $ billion

Interbrand

2013

BrandZ

2013

Brand Finance

20131. Apple 982. Google 933. Coca-Cola 794. IBM 795. Microsoft 606. GE 47

7. McDonalds 428. Samsung 409. Intel 3710. Toyota 35

1. Apple 1852. Google 1143. IBM 1134. McDonalds 905. Coca-Cola 786. AT&T 76

7. Microsoft 708. Marlboro 699. Visa 5610. China Mobile 55

1. Apple 872. Samsung 593. Google 524. Microsoft 465. Wal-Mart 426. IBM 38

7. GE 378. Amazon 379. Coca-Cola 3410. Vodafone 31

What conclusions would you draw from these figures?


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Measuring value

The next step in brand measurement is to find a way to

quantify a brands social impact, as well as its commercialimpact the two dimensions we explored in week 2.

How would you go about doing this?


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The topic of measurement and valuation is

becoming increasingly important, as companseek to understand their return on investme(ROI) in marketing

A good guide to this thorny subject is JonatKnowles and David Rutherford's Vulcans,Earthlings and Marketing ROI (2008)

Find out more

3ee2ecb731e04338f49edc37837471d0-2014 2.8 measuring and valuing brands

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