The purpose of this paper is to discuss the essential components of a brand metrics strategy and application of brand scorecard as an integrated approach to measure the overall performance of brands. Tools for brand performance measurement are integrated by firms into brand measurement systems, with new models for prioritizing the factors of brand influence introduced continuously. Hence, brands need to be periodically measured in terms of the impact on consumers, stimulating market demand, sustaining seasonality effects and exploring opportunities for proliferation.
This paper determines the essential components of a brand metrics strategy conceptualizing the inter‐dependence of “Five‐A” factors which include awareness, acquaintance, association, allegiance and appraisal to measure the performance of brands. The application of a brand scorecard process as an integrated approach to measure the overall performance of brands is also discussed, explaining how different constituents of metrics can be linked to business performance.
Brand metrics are considered to be effective tools for measuring the qualitative parameters of brand performance in a given market and time, allowing the firm to measure the effectiveness of brand‐building activity in reference to brand investment (financial inputs) and brand impact (growth outputs) in the business. It is also argued in the paper that brand management is not just a marketing issue; it also directly affects corporate profitability. Effective brand portfolio management starts by creating a fact base about the equity in each brand and the brand's economic contribution.
An effective brand measurement system helps businesses to understand how the brand is performing with the framework of customer values and against competing brands. This is a simple and effective tool of measuring brand performance in the market woven around the principle of pooling quantitative variables in various combinations in the metrics. It is important for a firm to understand relationships between brand perception, brand performance and financial impact, to work within the brand metrics process.
Application of brand metrics and brand scorecard would be useful for the managers to conduct analysis of brand metrics for mapping yield‐loss score in reference to brands gained versus brands lost. The metrics tools help in measuring the impact of various market drivers such as demand, consumer preferences, retail sales, brand promotion, price sensitivity, product attributes, trial effects and repeat purchase behavior of consumers on the performance of brands.
Brand metrics is a new concept and plays a major role in measuring the performance of brand in the market and applications of brand scorecard helps the process of determining the brand yield.
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