Literature for the business leader published by SchmidPreissler International Strategy Consultants, The Lion’s House, D-83703 Gmund am Tegernsee,,




SchmidPreissler Brand Equity+Performance©  Programm


Issue: 03/200

Next Issue: Week 18/2008



Excerpt of further issues topics: Brand Equity and Brand Strategy, Brand Equity and Brand Diffusion, Brand Equity and Company Success, Brand Equity and Sales and Acquisition of Brands or Companies, Brand Equity and Marketing Investment





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The Necessity of Establishing Monetary Brand Equity for Service Marks

We never want to tire of putting on record the fact that nowadays brands are often the most important equity in a company’s portfolio. As the study “The Practice of Brand Evaluation and Brand Management in German Consumer Goods Companies” shows, which has been compiled by auditing company and consulting firm PricewaterhouseCoopers (PwC) and Professor Henrik Sattler of the University Hamburg, GfK Marktforschung and Markenverband in 2006, brand equity’s share of the entire corporate value rose from an average of 56 to 67 percent between 1999 and 2005.

What applies to market oriented consumer goods companies also applies to service economies, whose center are brands and there is a series of reasons why it is sensible and necessary also for service companies to be dealing increasingly with the monetary value of their brands in the future.

As the most critical factor, in order to plan, steer and control the manifold and complex activities in connection with the marketing of brands, today and in the future, brand leadership that guaranties a high degree of rationality is required. And those responsible for brands are going to have to be prepared for capital expenditure budgets to be systematically scrutinized and preponderantly not in retrospect, but already before approval. The keyword of “brand controlling” is circulating and everything points to “return on brand investment” is going to be measured the same way today and in the future, as is already the case with other investments.

Discussions in regard to brand controlling are going to concentrate mainly on two aspects: Firstly quantitative criteria such as awareness and distribution of the brand and secondly qualitative criteria such as desirability, attractiveness, customer satisfaction and customer loyalty.

However, should brand controlling serve as determination for marketing expenditures and investments and support brand development successfully, it has to have far more reference parameters than just the question of awareness or desirability.

The requirements for a brand evaluation model for service companies differ, last but not least, from those applying to consumer goods by the fact that for service companies, for a lack of “haptic” products, other criteria such as interactivity between end customer and company have to be weighted more.

A loss of loyalty and sinking work motivation of employees as consequence of job cuts, wage cuts or bad labor management play a more significant role on the part of the consumer’s perception of the service offer and thus brand equity than is the case with consumer goods.

With the SchmidPreissler Brand Equity+Performance© model we have developed a sophisticated method of structuring and recording data available in businesses today, individually for every case, also for service companies.



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Editor: Dipl. Vw. Christina Schmid-Preissler - Assistant Editor: Regina Seago

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