Brand Equity and Brand Power
The value created by a brand is captured by two key concepts: brand equity and brand power. We discuss these two concepts and the relationship between them next.
Brand Equity
The monetary value of a brand is called brand equity and reflects the premium that is placed on a company’s valuation because of its ownership of the brand. Brand equity encompasses the net present value of the total financial returns that the brand will generate over its lifetime. Understanding the concept of brand equity, managing its antecedents and consequences, and developing methodologies to assess brand equity are of the utmost importance for ensuring a company’s financial well-being.
Prior to the wave of mergers and acquisitions in ...
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