Question

Compose a 200-word in which you perform the following operations: Locate a popular or scholarly source about a topic that is of interest to you. Summarize the source. Create a response to the source, where you discuss points where you agree, disagree, and/or would enhance the ideas expressed in the source. In doing so, specifically refer to ideas expressed in the source through paraphrase or direct quotation. Be sure to respond to the ideas you cite from the source.

Answer 1

BRAND ASSET VALUATOR –MEASURING BRAND VALUE by D. Sasikala (2013). Published in International Journal of Social Science & Interdisciplinary Research.

Summary:

The article highlights that a brand develops in a specific progression based on perception of the consumers. The process of building brand is reflected through four measures or pillars:

1. Differentiation – It defines how a brand distinguishes itself from others and is perceived as different and unique.

2. Relevance – It defines if a brand is personally appropriate to consumers. If it is not, then it is difficult to attract consumers to the brand in large numbers.

3. Esteem – It is the regard for the brand that consumers hold.

4. Knowledge – It means being aware of the brand and understanding what it stands for.

Differentiation and Relevance together constitute Brand Strength; Esteem and Knowledge together constitute Brand Stature. The relationship between these pillars shows the true picture of the brand’s intrinsic value. Using these 4 measures, BrandAsset Valuator develops a Power Grid which serves as a tool for managing brands. The following are the examples of each of these categories:

• Unrealized Potential: Successful emerging brands
• Leadership: Brand leaders like Disney
• Eroding: Commodity brands
• Unfocused: New, forgotten or unknown brands

Critique:

The Y & R BAV model is a good one in the sense that it is easy to use for brand managers and can be applied on almost every type of product. Also, the brand pillars provide robust information and can be clubbed with the financial information to determine the ROI of marketing programs. The main disadvantage of Y & R BAV model is that it takes into account only customer-based brand equity and tries to link it with the stock performance and totally ignores the firm-level brand equity. Y & R must integrate current and future accounting performance of the brand in the model for a better evaluation of brand equity because, practically, stock market enthusiasts evaluate a company based on its current term accounting performance and also its future market performance.