A Compendium of Brand Measurement

Jon Montgomery and Michael Lieberman

Brand equity is one of the more popular concepts in marketing today. It is also one of the most overused and misused terms in marketing research, and the subject of much fuzzy thinking. In fact, there are several definitions of brand equity, all of which stem from the concept of 'brand'.

A useful definition is that a brand is the sum total of all that is known, thought, felt and perceived about your company, service or product. Branding, then, is the process of making products and companies into brands – the consistent and disciplined way a company communicates a brand's essence to the public. Consumers' response to the brand revolves around the brand's image. This makes the concept an essential input into marketing strategy, since a positive, strong brand image will presumably lead to choosing a particular brand.