This document discusses various methods for measuring brand equity and valuing brands, including comparative, holistic, and valuation approaches. Comparative approaches examine consumer responses based on changes in brand identification or marketing programs. Holistic methods attempt to place an overall value on the brand through residual or valuation techniques. Valuation approaches determine the financial value of a brand for purposes like mergers and acquisitions. Specific valuation models are also described, like Interbrand's five-step process involving market segmentation, financial analysis, demand analysis, and discounting forecasted brand earnings.
Measuring outcomes of brand equity
Content Extracted from “Strategic Brand Management” 3rd Edition
Authors: Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand Management Students
Presentation developed by Leroy J. Ebert (25th April 2014)
Introducing & naming products & brand extensions chapter 12 by Leroy J. Ebert
Content Extracted from “Strategic Brand Management” 3rd Edition
Authors: Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand Management Students
Presentation developed by Leroy J. Ebert (15th May 2014)
Professor Keller is right now conducting various studies that deliver techniques to assemble, measure, and oversee brand value. Textbooks written by him on those subjects course reading on those subjects, Strategic Brand Management, has been embraced at top business schools and leading firms around the globe and has been proclaimed as the "Bible of Branding." Consolidating the most recent industry thinking and improvements, this investigation of brands, brand value, and strategic brand management combines a comprehensive theoretical foundation with numerous techniques and practical insights for making better day-to-day and long-term brand decisions–and thus improving the long-term profitability of specific brand strategies. In this slides, you will get the synopsis of brand management. For details, please read the main book.
Measuring outcomes of brand equity
Content Extracted from “Strategic Brand Management” 3rd Edition
Authors: Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand Management Students
Presentation developed by Leroy J. Ebert (25th April 2014)
Introducing & naming products & brand extensions chapter 12 by Leroy J. Ebert
Content Extracted from “Strategic Brand Management” 3rd Edition
Authors: Kevin Lane Keller
M.G. Parameswaran
Issac Jacob
Presentation developed from SLIM Diploma In Brand Management Students
Presentation developed by Leroy J. Ebert (15th May 2014)
Professor Keller is right now conducting various studies that deliver techniques to assemble, measure, and oversee brand value. Textbooks written by him on those subjects course reading on those subjects, Strategic Brand Management, has been embraced at top business schools and leading firms around the globe and has been proclaimed as the "Bible of Branding." Consolidating the most recent industry thinking and improvements, this investigation of brands, brand value, and strategic brand management combines a comprehensive theoretical foundation with numerous techniques and practical insights for making better day-to-day and long-term brand decisions–and thus improving the long-term profitability of specific brand strategies. In this slides, you will get the synopsis of brand management. For details, please read the main book.
As a student of the University of Washington I was instructed to present an introduction to the art of building trust and understanding ethical dilemmas in negotiations for a business negotiations course.
This presentation deals with the different methods of measuring brand equity, focusing on the method adopted by Interbrand, one of the most famous business agencies in the world.
Strategy Development
Week 3
Objectives Week 3Develop strategic objectives.
Create organizational objectives and goals.
Articulate value proposition, key activities, resources, and channels to market.
Quote……
“Successful business strategy is about actively shaping the game you play, not just playing the game you find.”
Adam M. Brandenburger and Barry J. Nalebuff
Quote……
“The essence of strategy lies in creating tomorrow’s competitive advantage faster than competitors mimic the ones you posses today”
Gary Hamel and C.K. Prahalad
Quote……
“Competitive strategy is about being different. It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value”.
—Michael E. Porter
Quote……
“Winners in business play rough and don’t apologize for it. The nicest part of playing hardball is watching your competitors squirm”
—George Stalk, Jr., and Rob Lachenauer”
Long-Term ObjectivesStrategic managers recognize that short-run profit maximization is rarely the best approach to achieving sustained corporate growth and profitability.Strategic decision makers confronts:
Should they eat the seeds to improve the near-term profit picture and make large dividend payments through cost-saving measures such as laying off workers during periods of slack demand, selling off inventories, or cutting back on research and development?
Or should they sow the seeds in the effort to reap long-term rewards by reinvesting profits in growth opportunities, committing resources to employee training, or increasing advertising expenditures?
Long-Term ObjectivesTo achieve long-term prosperity, strategic planners commonly establish long-term objectives in seven areas: Profitability Competitive PositionEmployee RelationsTechnological Leadership Productivity – In-OutEmployee DevelopmentPublic Responsibility
Qualities of Long-Term ObjectivesWhat distinguishes a good objective from a bad one? What qualities of an objective improve its chances of being attained?There are five criteria that should be used in preparing long-term objectives:
Flexible
Measurable
Motivating
Suitable
Understandable
The Balanced ScorecardThe balanced scorecard is a set of measures that are directly linked to the company’s strategy
Developed by Robert S. Kaplan and David P. Norton, it directs a company to link its own long-term strategy with tangible goals and actions.
The scorecard allows managers to evaluate the company from four perspectives:
financial performance
customer knowledge
internal business processes
learning and growth
The Balance Scorecard
The Balance Scorecard
The Balance ScorecardPerspectiveObjectiveKPIGoal for 2014FinanceBecome industry Cost Leader% Reduction in Cost per Unit20%Utilization of AssetsUtilization Rate7%Increase Market ShareMarket Share30%CustomerCustomer Retention% Retention 75%On Time Delivery% of On Time Delivery90%Zero Defects% of Good Quality.
In this presentation, we will understand the concept of brand and its valuation, in details, like, the various attributes of a brand, its benefits, its values and culture. We will also discuss about the various methods of brand valuation.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
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This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Hamster Kombat' Telegram Game Surpasses 100 Million Players—Token Release Sch...
Keller sbm3 10
1. 10.1
CHAPTER 10:CHAPTER 10:
MEASURING OUTCOMES OF BRAND EQUITY:MEASURING OUTCOMES OF BRAND EQUITY:
CAPURING MARKET PERFORMANCECAPURING MARKET PERFORMANCE
Kevin Lane KellerKevin Lane Keller
Tuck School of BusinessTuck School of Business
Dartmouth CollegeDartmouth College
2. 10.2
Measuring Brand EquityMeasuring Brand Equity
Multi-dimensional conceptMulti-dimensional concept
Many different measures requiredMany different measures required
The ultimate value of a brand depends on theThe ultimate value of a brand depends on the
underlying components of brand knowledge andunderlying components of brand knowledge and
sources of brand equitysources of brand equity
4. 10.4
Brand-Based ApproachesBrand-Based Approaches
The marketing element under consideration isThe marketing element under consideration is
fixed.fixed.
Consumer response is examined based on changesConsumer response is examined based on changes
in brand identification.in brand identification.
Application example:Application example: Blind testingBlind testing
Advantage:Advantage: Isolates the value of the brandIsolates the value of the brand
Disadvantage:Disadvantage: The totality of what is learned dependsThe totality of what is learned depends
on how many applications are examined.on how many applications are examined.
5. 10.5
Marketing-Based ApproachesMarketing-Based Approaches
The brand is held fixed and consumer response isThe brand is held fixed and consumer response is
examined based on changes in marketing programs.examined based on changes in marketing programs.
Applications:Applications: Explore price premiums’ effect onExplore price premiums’ effect on
switching, consumer evaluations of marketingswitching, consumer evaluations of marketing
activities, brand extensions, etc.activities, brand extensions, etc.
Advantage:Advantage: Ease of implementationEase of implementation
Disadvantage:Disadvantage: Difficult to determine whetherDifficult to determine whether
consumer responses are caused by brandconsumer responses are caused by brand
knowledge or generic product knowledgeknowledge or generic product knowledge
6. 10.6
Conjoint AnalysisConjoint Analysis
A survey-based multivariate technique that enablesA survey-based multivariate technique that enables
marketers to profile the consumer decision process withmarketers to profile the consumer decision process with
respect to products and brandsrespect to products and brands
Helps researchers determine the trade-offs consumersHelps researchers determine the trade-offs consumers
make between brand attributesmake between brand attributes
Applications:Applications: Assess advertising effectiveness and brandAssess advertising effectiveness and brand
value; analyze brand/price trade-offvalue; analyze brand/price trade-off
Advantage:Advantage: Allows for different brands or different aspectsAllows for different brands or different aspects
of the product to be analyzed simultaneouslyof the product to be analyzed simultaneously
Disadvantage:Disadvantage: May violate consumers’ expectations based onMay violate consumers’ expectations based on
what they already know about brandswhat they already know about brands
7. 10.7
Holistic MethodsHolistic Methods
Attempt to place an overall value on the brandAttempt to place an overall value on the brand
in either abstract utility terms or concrete financialin either abstract utility terms or concrete financial
termsterms
Net out various considerations to determine theNet out various considerations to determine the
unique contribution of the brandunique contribution of the brand
Holistic methods:Holistic methods:
Residual approachesResidual approaches
Valuation approachesValuation approaches
8. 10.8
Residual ApproachesResidual Approaches
Examine the value of the brand by subtractingExamine the value of the brand by subtracting
consumers’ preferences based on physical productconsumers’ preferences based on physical product
attributes alone from their overall brandattributes alone from their overall brand
preferencespreferences
Advantage:Advantage: Useful benchmark for interpretingUseful benchmark for interpreting
brand equity, especially from a financially orientedbrand equity, especially from a financially oriented
perspectiveperspective
Disadvantage:Disadvantage: Static view. Limited diagnostic valueStatic view. Limited diagnostic value
for strategic decision makingfor strategic decision making
9. 10.9
Valuation ApproachesValuation Approaches
Attempt to place a financial value on brand equityAttempt to place a financial value on brand equity
for accounting purposesfor accounting purposes
Useful in cases of mergers and acquisitions, brandUseful in cases of mergers and acquisitions, brand
licensing, fund raising, and brand managementlicensing, fund raising, and brand management
decisionsdecisions
Valuation approaches:Valuation approaches:
Accounting backgroundAccounting background
Historical perspectivesHistorical perspectives
General approachesGeneral approaches
Interbrand’s brand valuation methodologyInterbrand’s brand valuation methodology
10. 10.10
Accounting BackgroundAccounting Background
Intangible assetsIntangible assets are typically lumped under theare typically lumped under the
heading ofheading of goodwillgoodwill and include things such asand include things such as
patents, trademarks, and licensing agreements,patents, trademarks, and licensing agreements,
as well as “softer” considerations such as theas well as “softer” considerations such as the
skill of the management and customer relations.skill of the management and customer relations.
In an acquisition, the goodwill item oftenIn an acquisition, the goodwill item often
includes a premium paid to gain control, which,includes a premium paid to gain control, which,
in certain instances, may even exceed the valuein certain instances, may even exceed the value
of tangible and intangible assets.of tangible and intangible assets.
11. 10.11
Historical PerspectivesHistorical Perspectives
In Australia Rupert Murdoch’s News CorporationIn Australia Rupert Murdoch’s News Corporation
included a valuation of some of its magazines on itsincluded a valuation of some of its magazines on its
balance sheets in 1984.balance sheets in 1984.
British firms used brand values primarily to boost theirBritish firms used brand values primarily to boost their
balance sheets.balance sheets.
In the United States, generally accepted accountingIn the United States, generally accepted accounting
principles (blanket amortization principles) mean thatprinciples (blanket amortization principles) mean that
placing a brand on the balance sheet would requireplacing a brand on the balance sheet would require
amortization of that asset for up to 40 years. Such aamortization of that asset for up to 40 years. Such a
charge would severely hamper firm profitability; as acharge would severely hamper firm profitability; as a
result, firms avoid such accounting maneuvers.result, firms avoid such accounting maneuvers.
12. 10.12
General ApproachesGeneral Approaches
In determining the value of a brand in an acquisition orIn determining the value of a brand in an acquisition or
merger, firms can choose from three main approaches:merger, firms can choose from three main approaches:
Cost approach:Cost approach: Brand equity is the amount of money thatBrand equity is the amount of money that
would be required to reproduce or replace the brandwould be required to reproduce or replace the brand
Market approach:Market approach: The present value of the future economicThe present value of the future economic
benefits to be derived by the owner of the assetbenefits to be derived by the owner of the asset
Income approach:Income approach: The discounted future cash flow from theThe discounted future cash flow from the
future earnings stream for the brandfuture earnings stream for the brand
13. 10.13
Interbrand’s Brand ValuationInterbrand’s Brand Valuation
Assumes that brand value is the present worth of theAssumes that brand value is the present worth of the
benefits of future ownershipbenefits of future ownership
Follows five valuation steps:Follows five valuation steps:
Market segmentationMarket segmentation
Financial (role of branding) analysisFinancial (role of branding) analysis
Demand (brand strength) analysisDemand (brand strength) analysis
Competitive benchmarkingCompetitive benchmarking
Brand value calculationBrand value calculation
Brand value calculation : Calculate the brand value as theBrand value calculation : Calculate the brand value as the
net present value (NPV) of the forecast brand earnings,net present value (NPV) of the forecast brand earnings,
discounted by the brand discount ratediscounted by the brand discount rate