Essays on Marketing and Reasons for Metrics Selection Case Study

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The paper "Marketing and Reasons for Metrics Selection" is a perfect example of a Marketing Case Study. ‘ What’ s not measured is not managed. ’ Understanding of this catchphrase proves that to complete the process of marketing and its management the studying of brand equity and proper evaluation of the same becomes very important for any organization. Brands are becoming very important in the modern era of business and the customers are becoming more and more brand conscious and loyal towards particular brands from which they have previously attained use satisfaction.

With the increasing technology, unlike the traditional ways of business, firms today are armed with reams of data, sophisticated tools and rising evidence proving that old tricks are simply getting obsolete and out of work has induced organizations to follow the path of brand awareness and brand equity. In this assignment, we study about brand equity and associate metrics that are used by companies and how they are measured. Further, we come across the importance it adds to both the organization and the customers and also the barriers in its way.

Then we come across the brand impact which gives complete reasoning for the firms to use the concept of branding and brand equity to add advantage to its marketing strategies and also complete the process. Brand Equity Brand equity is actually the value of the brand in the marketplace. It is a brand power that has been derived from the goodwill and recognition earned over the years transforming into higher sales volume and profit margins against the competing brands. It is a critical part of building the business and takes time and tests the patience, also involving a great deal of effort to build positive brand equity. Products with higher brand values are capable of creating a positive differential response in the marketplace by adding significant value to any product in the mind of the consumer.

The ability of such brands that generate more value due to associations made by the customers is referred to as brand equity. The brand assigned to a product is just a name or symbol used for its identification but brand equity is something attainment of a higher level of importance through proper management (Lee, Lee, and Wu, 2011). Brand equity and brand valuation are some of the important metrics used by most organizations for the assessment of brand strength.

Some of the brand equity metrics are relative perceived quality, loyalty or retention, total number of customers, satisfaction of customers, relative price, market share, and awareness and distribution ability. Metrics Associated with Brand Equity Brand equity is a combined measure of brand strength and includes three sets of metrics, namely knowledge, preference and financial metrics (Ambler, Kokkinaki and Puntoni, 2004). The metrics are used by different companies globally to evaluate the exact performance of their brand and also reap many more benefits.

They are further discussed in detail: Knowledge Metrics: This is the measure of a brand’ s awareness and association through the various stages of recognition, aided, unaided and top of mind recall. It is very important for a brand to score high on both awareness and association attributes for developing a strong presence in the market. Preference Metrics: This metric measures the brand’ s awareness in the market and how it sets a benchmark for other competing brands.

Customers make a brand more preferential through from just a mere brand to a strong loyalty for it. A strong brand has the capacity to build strong customer loyalty through brand equity. Financial Metrics: The monetary value of a brand is measured through various parameters of market share, the price premium which a brand commands, revenue generation capability of the brand, transaction and lifetime value and the rate at which the brand sustains growth. A measure of some of them are as follows: Price Premium: The ability of a brand to command a price premium in the market is its financial advantage.

Measuring different prices of different brands helps in value-creation and thus adding a premium to the overall brand equity. Transaction Value: The average transaction value per customer is attained by dividing into segments, product segments, and geographical markets. This calculation ensures a brand’ s rise over other products through cross-selling or up-selling. Lifetime Value: The extraction of transaction value helps to find out how much a brand extracts more value from the customers throughout their life cycle. Growth Rate: The level of brand strength and the loyalty of the customer towards the brand help in determining the future growth opportunities of the brand.


Ambler, T., Kokkinaki, F. & Puntoni, S., 2004. Assessing Marketing Performance: Reasons for Metrics Selection. Journal of Marketing Management, Volume 20, pp. 475-498

Baldauf, A., Cravens, K. & Binder, G., 2003. Performance consequences of brand equity management: Evidence from organizations in the value chain. Journal of Product & Brand Management, 12(4/5), pp. 220-234.

Doyle, P. 2001. “Building Value-Based Branding Strategies”, Journal of Strategic Marketing, Vol. 9 No. 4, 1 December, pp. 255-268.

Erdem, T. and Joffre, S. 2004. “Brand Credibility, Brand Consideration, and Choice”, Journal of Consumer Research, 31 (June), 191-198

Kapferer, J.-N., 2008. The New Strategic Brand Management: Creating and Sustaining Brand Equity in the Long Run. London: KoganPage.

Lee, H.-M., Lee, C.-C. & Wu, C.-C., 2011. Brand image strategy effects brand equity after M&A. European Journal of Marketing, 45(7), pp. 1091-1111.

Martensen, A. & Gronholdt, L., 2004. Building Brand Equity: A Customer-Based Modelling Approach. Journal of Management Systems, 16(3), pp. 37-51.

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