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
Brand Equity and Brand
Christina Schmid-Preissler, SchmidPreissler
International Strategy Consultants
Without doubt, from the
point of view of businesses, in case of brand
transactions or licensing the establishment of
brand equity is still given the highest priority.
Nevertheless one can observe that the (monetary)
brand equity is increasingly going to play a
role when long-term oriented persons in charge
of the brand and financial experts of a business
lead discussion in regards to marketing budgets.
Planning, managing and controlling the manifold
and complex activities in connection with the
development and marketing of brands requires
today and in the future a brand handling which
secures a high degree of rationality in brand
leadership. And those responsible for brands are
going to have to get used to marketing budgets
being systematically scrutinized; and this not
exclusively after the event but already prior to
approval. The keyword of “marketing and
brand-controlling” is doing the rounds and the
indication is that the “return on marketing” is
going to be measured just the same as it is done
with other investments, today and in the future.
In our experience with international projects we
know that the discussion about brand-controlling
is concentrated on two aspects: First of all on
quantitative criteria such as awareness,
distribution of the brand and secondly on
qualitative criteria such as demand,
desirability, customer satisfaction and customer
However, brand-controlling is supposed to serve
as a basis for decisions on marketing
expenditures and investments and in order to
successfully assist with brand development,
other reference parameters than the question of
awareness or demand have to be in place.
In the knowledge that the success of brand
leadership and the efficient use of marketing
instruments is going to be reflected in the
equity development of the brand in the long-term,
move brand equity and its establishment into the
center of all considerations in regards to
To put the brand equity into the center of all
considerations means to set monetary
configuration specifications. Not just some
platitudes or desired attitudes, because
controlling only becomes revealing if those
responsible for the brand are positively able to
answer the question if an increase in brand
equity has been achieved. Of course, this should
suit the current and future owners of the brand.
The rigor with which the lively and visionary
picture we connect a brand with is cut down to
numbers may seem displeasing. But the time has
come to point out that there is no alternative.
With concern we have noticed that for some time
now marketing expenditures and investments are
adjusted to the fluctuations of the respective
business situation, unquestionable with great
risks to the brand equity. Or we see that there
are plenty of occasions to break out of the
stiff discipline which is required for a
consequent brand leadership. After all, we are
all only human. One may do it because he wants
to try something creative, to exchange something
old and possibly proven for something new.
Another may do it because low cost production
possibilities lure him to Asia. A third thinks
he has to follow the trends of communication and
a fourth is looking to open up new sales
locations and the fifth would like to show
through reduced pricing that the brand is
actually much too expensive. Good brand leaders
know: Brand work is detailed work. There is no
room for indulgence in a brand system. The
tougher the times are the more stringently brand
equity has to be kept in view.
A consequent brand leadership secures the path
of a brand and gives brand-leading companies the
chance to further develop their brand advantages.
A brand cannot be lead without expenditure and
investment. Creativity may only be used to
further emphasise brand advantages. The
manufacture of brand products does not get along
with cheap production possibilities in Asia. And
price reductions hurt brand products because the
lowered price indicates that the brand is
fundamentally too expensive.
A well developed and led brand whose equity has
been exactly calculated constitutes a value for
the business which has to earn interest and thus
secure profitability for the business.
It is imperative at all times to keep an eye on
the value of the brand and to employ
controllable and calculable reference parameters
for the calculation of the brand equity.
With the SchmidPreissler Brand
Equity+Performance© Program we have developed a
program that calculates the monetary brand
equity in terms of a working capital which aims
for a return-on-investment of the brand equity.
We assume that marketing expenditures and
investments, including communications costs, are
only going to be secured in the future through
the return-on-investment of the brand equity.
If you do have questions in regards to this
program, please do not hesitate to call.
Tel. +49/8022/91 78-22 Dipl. Vw. Christina