Value-based brand measurement and management — Jonathan Knowles, Interactive Marketing, Vol. 5 No. 1

This paper details a recent breakthrough in how to measure the intrinsic equity in brands and how to relate brand equity to ﬁnancial value creation. The methodology integrates brand health measures from the BrandAsset1 Valuator (BAV) database maintained by Young & Rubicam (Y&R) with measures of ﬁnancial performance from Stern Stewart’s Economic Value Added (EVA1) database to deliver the ﬁrst wholly objective approach to brand valuation.

The result is a robust econometric framework for measuring the relationship between brand health and value creation that is based on observable, repeatable data. By eliminating the need for ‘expert opinion’, the approach delivers results that enjoy high levels of credibility at boardroom level.

Perhaps most importantly, the creation of a framework that explicitly integrates inputs from marketing and ﬁnancial sources creates the basis for enhanced collaboration between the marketing and ﬁnance functions. Input from both functions is vital for the development of value-based brand strategies that harness the full contribution of brand strategy to the overall success and value of a business. (11 pages)

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