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