Diving In!

 It’s well-known that customers will tend to buy a product they recognize and trust. The concept of brand equity takes advantage of this customer behavioral tendency to maximize profitable sales over time (Toor, 2020). Today we are going to discuss two important topics: 

1. Measuring Brand Equity 

2. Measuring Brand Equity in Sports 

“Brand equity doesn’t change based on economic considerations.” 

– Chris Jogis 

Measuring Brand Equity 

 Meena Toor in her article, ‘7 Proven ways to Measure Brand Equity’, states “Whether you’re starting out, or you’ve been working on building your brand for a while, measuring your profess lets you know the strength of your brand in the market, and how it has developed over time.” 

When you have a strong brand equity you can create and increased revenue and profits and a marketplace that works in favor of the company. There are a few ways to measure brand equity including: 

1) Brand evaluation: Meena Toor states, “we have to consider cost-value (this includes budget spend on advertising and trademarking), market-value (the value of the brand when looking at other brands) and income-value (how much the company saved by growing the brand.” 

2) Brand Strength: You must ask customers what their intention to buy is and the customer’s current brand awareness they have of the brand now and overtime. 

3) Brand relevance: This is intertwined with customer satisfaction. Meena Toor states, “Customer satisfaction surveys can help you understand your customer’s satisfaction levels with your company’s brand, products, services, or experiences.” 

Measuring Brand Equity in Sports 

Adrian Brunello in his article on, ‘Brand Equity in Sports Industry’ , states “the sports industry is currently facing extraordinary growth, and therefore sports marketing plays a significant role in this emerging industry.” 

Developing and managing brand equity is especially crucial for professional sports teams (Biscaia et al., 2016). From a marketing perspective, two of the most well-known models belong to David Aaker and Kevin Lane Keller. 

In the sport setting, brand equity refers to the value that fans attach to their favorite team’s name and symbol (Gladden & Milne, 1999), this will then turn customers into loyal customers. Gladden, Milne, and Sutton (1998) describe the perceived quality of sport as the consumers’ pereceptions of a team’s success. 

Looking Ahead

Being able to measure the brand equity of your brand/company can help you understand who you are targeting. 

Catch us each week for more on brands and take a look at our Brands Architecture Strategy article from last week! 

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