How is the Power of a Brand Measured

February 28, 2007

I Have explained in previous posts how important is a brand for any business, also for blogs. There are companies spending a good part of their budgets to increase the value of their brand and to make it stronger, in a few words to make it powerful. But, how is the power of a brand measured? this is a question that only experts can answer. I found an article on BusinessWeek that explains how brand power is measured, it is a brief explanation on which elements Interbrand and BW consider at the moment they rank global brands. The process is not simple, there are a lot of things to consider to measure the real value of a brand, some of them are:

  • A brand must derive about a third of its earnings outside its home country.
  • Be recognizable outside of its base of customers.
  • Have publicly available marketing and financial data.

Those are the just the element to be in the list. But let´s go to the main purpose of this post, the power of the name or of the brand is calculated. According to the article “The first step is figuring out what percentage of a company’s revenues can be credited to a brand.” and “Finally, The brand’s strength is assessed to determine the risk profile of those earnings forecasts. Considerations include market leadership, stability, and global reach—or the ability to cross both geographic and cultural borders” As you can see it takes a lot to be consider a global brand and much more to appear in the list of the most valuable. Here is a good article about how to measure brand performance.

Written by Unlisted · Filed Under The Lounge 

Comments

5 Responses to “How is the Power of a Brand Measured”

  1. Thinkreferrals on February 28th, 2007 6:03 pm

    I like your post on Brands, we talk a lot about that within my Thinkreferrals Business Network. Actually, you have a lot of great posts. I think I will keep reading your blog. Thanks for the visit to ours as well.

  2. George C on February 28th, 2007 6:22 pm

    Thanks a lot! Hope to see you around.

  3. Sania Wyatt on February 28th, 2007 6:54 pm

    Actually as I see it, business is actually spending more money on Branding than actually seeing to perfect their product and increase customer experience!

    Btw I really liked the information here and I was looking for an email RSS feed subscription service but I found none! 🙁

    I don’t use a RSS reader.

  4. How to Define your Blog as a Brand | Blogger Lounge on March 13th, 2007 6:39 am

    […] think in your blog as a brand and as a business”, previously I published a post about how the power of a brand is measured, well, your blog can be a brand to, and its power can be measured as well, but that’s another […]

  5. Top 10 Most Valuable Blogs of 2007 | Blogger Lounge on March 20th, 2007 3:18 pm

    […] course there are other things to consider when measuring the value of a blog, like the power and relevancy of the brand, its resources etc. But the truth is that these sites really know what they’re doing, now let […]

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