Assessing the effectiveness of company branding
Posted: Sat Jan 18, 2025 5:37 am
known techniques.
Brand valuation using a simple formula
Calculating value begins with projecting future profits generated by market presence. The share of funds generated by the unique qualities of the brand, including its recognition, patents, and customer loyalty, should be identified. The contribution of tangible assets should be subtracted from the total expected profit to understand what part of the income is provided by intangible assets.
Brand valuation using a simple formula
Source: shutterstock.com
Next, using the results of marketing chinese singapore b2c cell phone number data analysis and the opinions of key managers, it is determined what contribution the brand makes to the overall profit. It is also important to assess its strength by analyzing its market position, sustainability, and ability to overcome geographical and cultural barriers. The risk associated with these factors is then subtracted from the profit generated by branding, and the result indicates the real value of the trademark.
There is also an alternative approach to assessment.
Assessment using the ROBI (Return Of Brand Investments) method
The ROBI (Return on Brand Investment) evaluation method is aimed at analyzing the effectiveness of investments in brand development and their profitability. The ROBI-8 method is popular:
The degree of brand awareness among consumers is studied, namely, the ability of the audience to recall the brand.
It evaluates how clearly the brand positioning and the essence of advertising messages are conveyed to the target audience, thereby checking the presence of effective communication with potential clients.
It is analyzed whether the consumer pays attention to the unique features of the company and whether adjustments are made if necessary.
The compliance of the brand's offerings with the needs of buyers is checked.
To assess the brand's impact on business using quantitative metrics, it is enough to conduct an analysis once a year:
Calculate the number of new customers attracted through company branding;
Estimate how many customers might leave if the brand were not on the market;
Consider the number of people who have started purchasing products more often solely due to the company's well-developed branding;
Calculate the maximum markup you can set on your product compared to similar offers from competitors by multiplying it by sales volume or another similar criterion.
This methodology allows us to assess how effectively a brand and its assets are being managed, and it provides a deep look into the overall strategy of the process.
Assessment using the ROBI method
Source: shutterstock.com
It is ideal for creating brand management policies and monitoring their effectiveness over the long term. The key aspects it focuses on are:
brand awareness;
volumes of consumption of products offered by the brand;
level of recognition of the organization's advertising;
formed image;
socio-demographic characteristics of the target audience;
media plan details, such as number of ad impressions, GRP, CPT.
Remember to consider key aspects when evaluating brand development costs, including the following:
The period chosen for data analysis has a significant impact on the results.
Using discount rates helps you understand how past investments affect the present.
Cost structure: For example, investments in advertising provide a steady increase in sales, making it easy to calculate the immediate benefits. However, marketing campaigns also help to build brand image and awareness, which in the long run leads to increased revenue, although the exact size of future profits remains a matter of hypothetical estimates.
Download a useful document on the topic:
Brand valuation using a simple formula
Calculating value begins with projecting future profits generated by market presence. The share of funds generated by the unique qualities of the brand, including its recognition, patents, and customer loyalty, should be identified. The contribution of tangible assets should be subtracted from the total expected profit to understand what part of the income is provided by intangible assets.
Brand valuation using a simple formula
Source: shutterstock.com
Next, using the results of marketing chinese singapore b2c cell phone number data analysis and the opinions of key managers, it is determined what contribution the brand makes to the overall profit. It is also important to assess its strength by analyzing its market position, sustainability, and ability to overcome geographical and cultural barriers. The risk associated with these factors is then subtracted from the profit generated by branding, and the result indicates the real value of the trademark.
There is also an alternative approach to assessment.
Assessment using the ROBI (Return Of Brand Investments) method
The ROBI (Return on Brand Investment) evaluation method is aimed at analyzing the effectiveness of investments in brand development and their profitability. The ROBI-8 method is popular:
The degree of brand awareness among consumers is studied, namely, the ability of the audience to recall the brand.
It evaluates how clearly the brand positioning and the essence of advertising messages are conveyed to the target audience, thereby checking the presence of effective communication with potential clients.
It is analyzed whether the consumer pays attention to the unique features of the company and whether adjustments are made if necessary.
The compliance of the brand's offerings with the needs of buyers is checked.
To assess the brand's impact on business using quantitative metrics, it is enough to conduct an analysis once a year:
Calculate the number of new customers attracted through company branding;
Estimate how many customers might leave if the brand were not on the market;
Consider the number of people who have started purchasing products more often solely due to the company's well-developed branding;
Calculate the maximum markup you can set on your product compared to similar offers from competitors by multiplying it by sales volume or another similar criterion.
This methodology allows us to assess how effectively a brand and its assets are being managed, and it provides a deep look into the overall strategy of the process.
Assessment using the ROBI method
Source: shutterstock.com
It is ideal for creating brand management policies and monitoring their effectiveness over the long term. The key aspects it focuses on are:
brand awareness;
volumes of consumption of products offered by the brand;
level of recognition of the organization's advertising;
formed image;
socio-demographic characteristics of the target audience;
media plan details, such as number of ad impressions, GRP, CPT.
Remember to consider key aspects when evaluating brand development costs, including the following:
The period chosen for data analysis has a significant impact on the results.
Using discount rates helps you understand how past investments affect the present.
Cost structure: For example, investments in advertising provide a steady increase in sales, making it easy to calculate the immediate benefits. However, marketing campaigns also help to build brand image and awareness, which in the long run leads to increased revenue, although the exact size of future profits remains a matter of hypothetical estimates.
Download a useful document on the topic: