Measuring Brand Value: Key Points

So the brand equity provides a long term estimate of the value of a brand. Measures such as interbrand and revenue premium provide you a financial value of the brand. On the other hand, measures such as interbrand provides you a diagnostic measure of the value of your brand. Whereas, knowing the value of the brand important. It is important say for marketer who are involved in mergers and acquisitions to know the value of the brand so that they know what to pay for the brand. And it is used to trade off marketing investment between long term brand value type activities and short-term price promotion measures.

So, knowing the brand value really tells you how you can trade off between different marketing activities like whether, what is the value of investing in something like advertising that leads to long-term brand value, and take patient measures to build the brand value. Versus invest in shorter measures like price promotions, that gives you a short-term value, but not necessarily a long-term improvement in brand value.