What do you think of this study? Do the assumptions make sense? Are there any adjustments you can recommend?
I think the study is comprehensive and addresses essential components of a brand and its relevance to both the firm and the customers. The methodology used in determining brand value is good. A financial forecast is essential in determining the monetary value of the brand while at the same time establishing the possibility of consumers accepting the set prices for the brand. The role of the brand is an important valuation tool as it provides an insight into the degree to which the company’s products are differentiated from other competitor’s commodities and its effects on marketing strategies. The brand strength valuation is also a good methodology for valuation as it gives the company insights on the performance of the brand in enhancing awareness of the company as well as expanding the market base for the company’s products.
What benefits might such measures provide for the brand?
The three components of valuation are beneficial as they provide information on the performance of the brand towards satisfying consumer needs as well as evaluating the popularity of the company. The information gathered will be essential in making marketing adjustments as well as in rebranding strategies.
Does it matter how a brand is worth? Do you think it is a good metric or poor metric…… and why?
A brand worth matters as it determines to a great extent the value of efforts and resources to be invested in ensuring that the brand gets a strong market standing. Also, most clients associate the brand value with quality; hence when the value is not worth, they will perceive the commodity is of poor quality hence shun away from purchasing it. It is a poor metric since goods of poor quality may be associated with a strong brand value thus deceiving consumers on the quality of the brand.
Please, mention any other observations you may have or something you felt was interesting when you reviewed this information
The study is very educative when it comes to all aspect of measuring brand worth. It brings an insight to the sales persons on adjusting their sales tactics and ensuring that they match brand worth with the quality of the products. I loved the explanations of the internal and external brand dimensions and how they should be applied in marketing strategies.