By Kaitlin Villanova
The ANA recently surveyed a random sample of ANA members who are part of the ANA's Brand Leadership Panel - managed by Guideline Inc. - about brand deterioration. The survey was initiated by the ANA Brand Management Commitee and led by Committee Chair Rodger Adams, SVP and CMO of The Home Depot.
Interestingly enough, roughly 68 percent of companies surveyed indicated their company has been marketing its brand for more than 25 years. Nine percent for 15 to 25 years, 14 percent 5 to 15 years and only 8 percent of companies have been marketing its brand for 5 years or less. With so many veteran brands in the marketplace, more than half felt that despite the age of the brand, they are still well established and strong.
David Ogilvy reminds us that brand equity is defined as "the consumer's idea of a product." As simple as this definition is, measuring this is challenging. There are numerous approaches to measuring brand equity, and they generally fall into two categories:
- Research-based brand equity evaluations - measures buyer behavior and attitudes and how they impact the economic performance of a brand.
- Financially driven approaches - measures that consider the aggregate of historic costs incurred or replacement cost required to bring the brand to its current state.
Brand deterioration has been talked about, written about, and worried about for the past decade. The perception of a companys' brand equity has become integral to its perceived value, stature and success.
To learn more on the subject, check out Brand Deterioration: How to Identify, Measure and Respond or you can register for a complimentary Guideline Webinar on Wednesday June 6.
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