The Importance of Measuring Your Brand’s Value
Branding has become one of the most valuable elements for success in individuals, small business owners and large companies alike. The question and the delima most businesses face is measuring their brand value. Measuring your brand’s value, which is sometimes called brand equity, is a term used in marketing circles to identify the extent to which a brand is known.
Some factors which measure a brands equity include, market share, consumer perception and recognition, profit margin and any words, phrases, mottos, jingles that consumers easily recognize.
Other factors, attached to a brand, that influence consumer buying decisions are quality, performance, prestige, value, dependability, longevity and trust. Any or all of these factors can be real or perceived in the mind of consumers. Yet, consumers are more than willing to pay premium prices for leading brands.
Measuring brands of tangible products is considerably easier than brands of service oriented businesses. It is simple enough to compare two types of cola. Covering the label and having people identify the better tasting cola will reveal whether a brand has inherent value or perceived value. Comparing two competitor hotel chains is not possible by covering up labels. Other metrics would be required for measuring brand value for these types of businesses.
Its important to understand that a brand incorporates more than just the logo. It is identified by image, perception and name as well. This is even more important with the advent and popularity of social media. Every post, tweet and comment all help build or diminish a brand. Avatars, Business Pages, images and the like need to be strategically chosen and effectively utilized. In fact, if a brand is successful at obtaining what is known as “earned media,” it can be used as a metric for measuring brand value.
Earned media essentially means that the people and potential consumers on the various social media sites are talking positively about your brand. Not only is this a reliable indication of brand value, it is a necessary metric of a successful online brand presence.
Ultimately, the goal is not only to measure brand value, but also increase and protect it. Education and research are the best ways to ascertain which metrics are best for measuring your brand’s value.Tags: brand equity, brand value, marketing