8. Brand Equity

Brands need to be built and managed to ensure their long-term sustainability. There are ongoing activities to innovate, build trust in the brand, integrate identities and effectively communicate with stakeholders. This built-up brand becomes valuable and a large part of the intangible assets of a company. Understanding the worth and value of this intangible offer is essential, at least from a management point of view, to justify and evaluate the investment in building and developing the brand. The economic consequences of brand management can be difficult to establish, suggesting the need for a quantitative and rigorous approach towards brand evaluation. Building on previous concepts of branding, in this chapter we explore the concept of brand equity and its importance for brands, brand managers and other stakeholders. In addition, we will look at four different brand valuation models, and the impact of different methodologies and market and economic research on the inconsistencies across these models. We will conclude with key considerations for brand equity, especially as it relates to brand managers of charities and smaller brands.