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Brand Turnaround by Karen Post

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Why Brand Equity Matters

Brand equity is a social and emotional currency.

For some, it’s an important line item on a balance sheet before a proposed acquisition or sale. For others, such as large public companies, it can represent a formula component in the highly publicized “Best Global Brand Report,” an annual value assessment by Interbrand, a leading brand consulting firm. For all brands, no matter their size or type, brand equity is the net balance of positive worth and value versus negative behavior and risk.

Brand equity can also be a badge of honor a brand earns from doing good deeds, behaving likeably, and creating a notable public profile through social media buzz, publicity, advertising, and word of mouth. No matter how it’s built, ...

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