• Impact Metrics: These measurements determine performance and are the most critical elements in determining Brand Equity.
  • Market Share: For each market segment, determine the brand's share of market as well as the shares of competitive brands to assess relative market strengths. The larger the market share, the more a brand can assume a leadership role and realize economies or scale.
  • Profitability: The bottom line. The ultimate measure. As a brand contributes to the company's profit, the more it is likely to be granted the attention needed to continue its contributions.
  • Price Premium: Tied to Profitability and Market Share, this is a measure of the amount over the average price your brand can command. It is a measure of leadership in the brand's category as well as a source of increased revenue.
  • Life Cycle: Within the life cycle of a product category are the life cycles of the brands themselves. Determining where your brand is along its life cycle is vital because it dictates how it will be marketed. Is it time to bring a "new, improved" version to market? Is it time to retire a mature brand? Is it time to "milk" a cash cow? Should the present brand be replaced entirely? Yes, this is impactful.
  • Customer Life Value: Determine the value of a customer over the life of their average tenure as a customer and utilize this information to determine how much you are willing to spend to get a customer, how vital it is to hold on to existing customers, and how you will position the brand to attract those customer types representing the most value.
• Brand Equity: This is a relatively new measurement concept - assigning a dollar value to a brand. It has been introduced into accounting practices to determine the value of the asset called brand during the 1990's. It helps determine the actual value of a business. Many elements can be considered in valuing a brand. Those listed below define the assets most used to establish brand equity.
  • Brand Loyalty: This asset combines characteristics associated with Image (Brand Loyalty, Name Awareness) and Impact (Customer Life Value and Price Premium).
  • Name Awareness: This is the spectrum of Awareness, Recognition and Preference and also measures relative confidence and commitment on the part of market segments. Brand Personality and Differentiators, as they are communicated along with the name, also play a part in establishing a brand's equity.
  • Perceived Quality: Here, Brand Personality, Differentiators and Positioning have a strong place in the mix, for they are the attributes customers use to make judgments about products - your and your competitors. Price and Loyalty play a role as well.
  • Brand Associations: Though often difficult to quantify, associations with which the brand is consciously linked - say with a sports event, a charity, a celebrity, a joint venture - can enhance a brand's perceived image.
  • Other Proprietary Assets: These will vary depending upon product, market and situation. Examples include trademarks and patents, strong distribution relationships, corporate integrity.

Determining a brand's equity is a complex activity which needs to involve accounting as well as marketing experts. Most likely it will be tackled if a brand or a company is going to valued for acquisition or merger.