| Brand ROI or Return on Investment is a measure of | | | | and published through Business Week, the top five |
| how much a company is able to profit from the use | | | | global brand names are Coca-Cola, Microsoft, |
| of a brand when marketing its products or services. | | | | International Business Machines (IBM), General Electric |
| A brand can be a name, design, term, or symbol that | | | | (GE), and Intel. The values of these brands were |
| is a label of ownership. A brand can become a very | | | | calculated by determining the percentage of the |
| important asset for a company and it can likewise | | | | company's revenues that can be directly credited to |
| drive success in financial and competitive markets. In | | | | the brand. When this was done, they projected sales |
| advertising themes, a brand is a very valuable | | | | revenues for five years and deducted the value of |
| element. Usually, a marketing department seeks to | | | | intangibles, like patents from this figure. Other less |
| align customer expectations behind a brand name. | | | | in-depth methods of determining the value of a brand |
| Marketers attempt to assign certain qualities and | | | | are the use of name-brand price advantage and |
| characteristics to a brand so that customers will be | | | | higher company valuation. Through the first method, |
| able to distinguish their product or service apart from | | | | brand recognition can be measured through the |
| the others. Brands can be so powerful that they can | | | | differences in the prices of branded products and |
| attract sales even without much promotional effort | | | | generic products. This is based on the fact that |
| from a company. It is for this reason that many | | | | branding increases the perceived value of products |
| marketers have endeavored to specialize in brand | | | | and services. The second method which is higher |
| management, the art of brand creation and | | | | company valuation is based on how investors value |
| maintenance. | | | | well-performing brands. |
| When a brand becomes very popular to its target | | | | Brand valuation is a crucial factor in brand |
| market segment, it achieves brand recognition. When | | | | management. Brand valuation involves calculation of |
| brand recognition reaches the point of critical positive | | | | potential earnings from a brand throughout its |
| mass, a brand achieves brand franchise. The ultimate | | | | expected life down to its present day value. A brand |
| goal in brand management is to place a particular | | | | value tracker may be designed to monitor the |
| brand on top of its product or service category. A | | | | effects of any advertising or marketing strategy on |
| brand name may also be classified as a type of | | | | brand value. Competitor activity, sales figures, market |
| trademark, especially if it identifies and determines | | | | trends, and other key performance indicators (KPIs) |
| the brand owner as the commercial source of some | | | | may be integrated into a brand value tracker. Having |
| products and services. When this is the case, the | | | | all these data together in one page allows easy |
| brand owner may apply for proprietary protection by | | | | analysis and comparison. Moreover, this setup makes |
| registering its trademark. | | | | it easier for managers to build the relationship |
| According to a survey compiled by Interbrand Corp. | | | | between some factors and brand ROI. |