SU 5: Measuring Brand Equity And Performance Flashcards
MCQ: Why is measurement important
Different ways of measuring marketing’s effectiveness is necessary because not measuring a brand’s marketing effectiveness may lead to a misguided assessment of a brands potential performance
MCQ: What are the three levels for measuring marketing effectiveness
Shareholder value added, linking activities and attributes to outcomes, and micro measurement
MCQ: Define brand
Promise to a customer to deliver what the brand stands for
MCQ: Define brand equity
The value of having a recognised brand
MCQ: Define brand value
The financial worth of the brand
*Explain the brand equity methods - qualitative
- brand awareness: increased brand awareness results in a positive perception of the brand
- perceived quality: demand and desire for a brand increases when consumers perceive a brand to be of high quality especially when comparing two brands (some people say that Burger King is better then McDonald’s, that’s because they perceive Burger King to be of higher quality than McDonald’s)
- brand associations: it’s about recognition of brand imagery, such as a logo this looks like associating an M with McDonald’s
- brand loyalty: loyal consumers prefer the brand and keep on buying the brand or product (loyalty means repeat purchases by customers)
*Explain the brand equity methods - quantitative
> cost: the amount of money needed to replace or reproduce the brand
- the disadvantage of the approach is that historical costs are a poor indication of replacement costs
> market: market share is the volume and value in comparison with a generic product
- the advantage of the approach is that it is transparent because prices and volumes are available, so external comparison is possible
- the disadvantages that it is a static and assumes that both branded and generic products have the same quality
> income/future earnings: future brand earnings are discounted to a present value
- the advantage of this aproache is that it is widely used and recognized
- the disadvantage is is that it involves complex calculations and subjective inputs
MCQ: Differentiate between brand valuation and brand evaluation
Brand valuation determines a brand’s value and, brand evaluation determines its level of brand equity
MCQ: Differentiate between brand value and brand equity
Brand value is the value of the financial asset on the company’s books, whereas brand equity is the value of the brand in the eyes of the customer
MCQ: What are the two most popular commercial models
Interbrand and Brand finance
MCQ: What are the components of interbrand
> an analysis of the financial performance of the branded products and services
> the role the brand plays in purchasing decisions
> and the brand’s competitive strength
MCQ: What are the methodology’s of interbrand
In the valuation of methodology they are internal and external factors
internal
- clarity: is the brand clear about what it stands for
- commitment: is sufficient time dedicated to the brand
- governance: does the organization effectively and efficiently deploy the brand strategy
- responsiveness: constantly evolve the brand in response to the market and environmental changes
external
- authenticity: define the story and value set
- relevance: fit with customer needs and desires
- differentiation: do customers perceive the brand position and experience to be different
- consistency: brand experience across all touch points consistent
- presence: brand awareness across traditional and social media
- engagement: customers show deep understanding of the brand
MCQ: What is brand finance
Combining a brand strength index with something called a royalty rate. A royalty rate is a theoretical construct that calculates what the brand will theoretically charge for another company to license and use the brand
MCQ: What does the brand finance valuation model consist of
Brand strength index, brand royalty rate, brand revenues, brand value
MCQ: What are the brand valuation approaches and models
> Accounting perspective:
> Brand value:
> How do we create value:
