Everything you wanted to know about 'brand

equity tracking' but were afraid to ask

By Alan Cooper

Alan Cooper has spent INTRODUCTION

16 years working with Brand equity - its definition and
brands at major approaches to its measurement -
advertising agencies. He continues to be a hot topic. Nowadays, its
was one of the first seems difficult to pick up a business or
Account Planners marketing journal without coming across
appointed by Dr Sirnon the 'BE' phrase. This august organ itself
Broadbent at Leo Burnett recently devoted an entire issue of nearly
and subsequently worked 90 pages to the financial approach to
at the entrepreneurial agencies GGT and valuing brand equity1. In September 1998
as a Director of (TBWA) Simons Palmer, the Market Research Society (MRS)
the two of which have recently merged. convened a seminar at which different
Alan has just completed two years as views on brand equity and its
Chairman of the Account Planning Group, measurement were posited by a variety of
the industry organisation that represents market research companies. The objective
the interests of ac- count planning of this paper is to review the principal
worldwide. issues connected with brand equity and its
He is editor of 'Haw to plan advertising', measurement or tracking that were raised
and wrote the foreword to 'Understanding at this seminar.
brands'. Alan has had several articles
published on advertising and brand It is not the intention of the author to dwell
strategy issues. overlong on the definition of brand equity -
this has long ago been covered admirably
Abstract in this journal 2 and in many other bodies of
This paper reviews several key issues literature. Nevertheless, a marker will have
connected with the measurement and been put down for any readers coming
tracking of brand equities. ft was written afresh to this topic. However, it is the
after a recent Market Research Society author's intention to concentrate on
seminar at which leading research fostering a debate about the various
companies discussed their commercial principles involved in measuring ( or
approaches on the subject. The paper tracking) brand equity. It is clear that, just
outlines two definitions of brand equity, as there is no consensus definition about
namely the evaluation of the strength of what is brand equity, there is no common
consumer's relationship with a brand and agreement about how it should be
the description of the associations and measured. Perhaps this is healthy, as it
attributes that consumers link to a brand. stimulates all those involved to continue to
The principles of the measurement think about the matter. Perhaps this is
approaches for each are discussed and inevitable, as measurement is practised by
some issues facing the prospective commercial companies that are obliged to
purchaser of research services are noted. offer different services or they would be
A key thesis is that professional services accused of plagiarism. The MRS seminar
should be developed more from the offered a platform to eleven companies
perspective of the brand marketing that specialise in this area - and there may
requirement, rather than being driven be other practitioners to whom an offer
largely by research technique. was not extended.

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 Figure 1: A Typical
format used by
research companies
Consumer A for the graphic
presentation of
linear brand equity
Consumer B measurement

Increasing
strength
of consumer
relationship
Consumer C
with brand

Consumer D

Consumer E

BACK TO BASICS -WHAT DO WE MEAN who have a stronger relationship with it are
BY BRAND EQUITY? more valuable to the brand (through their
Keller cites no fewer than nine definitions current and supposed future purchasing
of brand equity3. Across these definitions behaviour): those who have a weaker
similar phrases do occur suggesting that relationship are less important, but may be
there are areas of common focus. 'Sets of regarded as targets for acquisitive
brand as sets and associations', 'allows marketing activity. Each consumer group
more sales/mar- gins', 'adds value to the can be regarded as constituting different
product for its audiences', 'sustainable' and equities for the brand and, by applying a
'advantage' give the reader a good formula, it might be possible to derive an
impression of what the various authors expression of the total equity that a brand
were intending to convey. Judging from has.
these examples, and confirmed by the Invariably, the commercial measurement
speakers at the seminar, non-financial approaches for 'linear' brand equity would
meanings of brand equity essentially fall depict the consumer groups so formed in a
into one of two camps. pyramid shape. Those groups that
Firstly, there is the 'linear' sense of brand represented greater value to the brand
equity. This is typically a single dimension would be found towards the top and those
that encapsulates an audience's constituting less value towards the bottom
relationship with a brand. Commitment to a (see Figure 1).
brand, past and present purchase loyalty, Secondly, there is the 'spatial' sense of
strength of preference, preparedness to brand equity. This approach attempts to
pay a premium are some examples of what de- fine the 'territory' that a brand occupies
this dimension might be. This might be in the audience's mind- the sets of
qualified by a second dimension, for associations, attributes and imagery which
instance the perception that a brand has consumers vest in the brand. This is a
competitive advantage, to add additional multi-dimensional approach which
sensitivity. However they are framed, it is encompasses as many facets as the
the intention of this approach to group measurement organisation deems to be
consumers according to the strength of relevant: typically, the verbal, and
their relationship with the brand. The sometimes non-verbal, brand vocabulary
assumption being that those consumers of the consumer drives this. This approach

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 Figure 2: A typical
Decreasing strength of format used by research
consumer brand association, companies for the
attributes and imagery graphic presentation of
spatial brand equity
measurement
High Medium Low

High
and usage motivatio n
Increasing strength of
consumer purchase

Medium

Low

is more descriptive of a brand's equity company's measurement tool, will vary

whereas the first one strives to be more de- pending on the circumstances and
evaluative. practical requirements of the brand owner
In order to interpret the importance of the at any particular moment. There is a role
brand associations, attributes and imagery, for both the 'counting' and 'describing'
the motivators for category purchase and approaches to measurement, although
use are obtained. Thus, it is possible to there is a healthy debate about what is the
evaluate whether attributes that are best way of doing them.
strongly associated with a brand are also
strong purchase motivations in the WHY IS MEASUREMENT IMPORTANT?
category or not. Market research estimates put the annual
Product development or brand worth of brand and advertising
repositioning might be recommended if a measurement in the region of £50 million.
brand is found to be only moderately or The author can classify the rationales for
weakly associated with dimensions that the measurement of brand equity into four
are key drivers for the sector. categories - and the reader may consider
Again, there is a typical method of others.
graphically depicting these data: namely, a
2x2 or 3x3 grid in which brand associations If something exists it is a man's instinct to
are grouped (according to their strength) measure it. The act of measurement
along the top and sector motivations along somehow adds further proof of the
the side (see Figure 2) .Sectors of the grid existence of what is being measured.
can thus be interpreted along the lines of
'strength, weakness, opportunity, threat' "There is measure in all things"
according to the current equities of the Horace
client brand and its competitors and the
sector drivers. Thus, one plausible route to demonstrate
These two definitions of brand equity seem that a brand exists, and that it is not simply
to exist happily beside each other in seen as commodity product, it is to
marketing circles. The appropriateness of measure it. Given that brands have many
either concept, and of the market research intangible components the commercial

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focus can be more on the process of is to help interpret a financial valuation that
measurement than on the results of it. The has been made on the brand. Guidelines
author considers this as 'measurement for is- sued by the Accounting Standards
the challenge'. Board in December 19974 recommend that
A second rationale for measurement is to all brands that have been acquired should
help understand more about the brand. be valued for the company's annual
Market research is likely to provide a fuller balance sheet. Moreover, beyond the need
appraisal of the brand's strength, character to value acquired brands, it should be the
and uniqueness than the brand owner may ambition of most companies to increase
possess through his/her own experience the value of their brand assets and, so, it is
and collection of anecdotes. It can certainly prudent to understand the brand's
compare and contrast the brand with its strengths and weaknesses with a view to
competitors in an objective way. This building its equity with the following years'
picture of the brand provides confidence marketing efforts. Recent papers published
and reassurance for the owner and may be by The London Business School5/6 suggest
used in part or in whole in future brand that such a disciplined approach might also
development. This could be referred to as be used to help make the marketing
'measurement for information'. function itself more ac- countable within
the company. The author terms this
"And measure every planet's wandering rationale measurement for corporate
course management.
Still climbing after knowledge infinite."
Christopher Marlowe
'Measures, not men, have always been my
A third driver of measurement is the mark.'
requirement to assess whether brand Oliver Goldsmith
marketing strategies could (in the future) or
have (in the past) been effective in OVERVIEW OF COMMERCIALLY
enhancing its equity. Marketers deploy AVAILABLE BRAND EQUITY
different strategies to develop their brands MEASUREMENT PRODUCTS
and it is against these strategies that Although the universe for this overview is
measurement tools should be designed the companies represented at the MRS
and deployed. On many occasions it is not seminar, the author is reassured that this
the specific aim of marketing programmes constitutes almost all of the major players.
to strengthen consumer's loyalty or Applying the four stage classification cited
relationship with a brand, for instance in its above most research agencies's offerings
early life it may be more appropriate to could be summarised as either the first
establish its presence or seek to (measurement for the challenge) or the
differentiate it in some way. The launch of second (measurement for information)
the FirstDirect, Goldfish and Virgin brands types. In a some instances elements of the
in financial ser- vices in the last decade are third type (measurement for action) could
a testament to this. Thus, tracking the be identified: the fourth species was not in
linear aspect of brand equity may not be as evidence at all.
relevant as measuring its spatial aspects Perhaps this conclusion was predicated by
(its attributes and associations). This could the occasion having been organised, and
be referred to as measurement for action. the speakers convened, by the MRS.
Although the Society represents the
'Measurement began our might.' interests of market research ( or marketing
W.B. Yeats research) the focus of the company
presentations was research rather than
A final motivation for measuring equities, marketing. Considerable effort was de-
and one that may only be slowly emerging, voted to explaining the techniques of data

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collection and analysis, but far less important in choosing between, and
resources were generally spent in using, brands in the sector?
demonstrating how this corresponded with – How should a brand reposition itself
the strategies available to, or having been better to exploit the category motivators
used by marketers to build their brands. and build its equity?
Even if confidentiality does not permit case
studies to be revealed in detail it should If research companies seized the
still have been possible to link the equity opportunity to design their products from a
tracking processes to the general marketing, rather than a research,
strategies that marketers pursue. Surely perspective a greater differentiation in
this issue requires careful consideration by products may result.
practitioners if their services are to meet Any market research approach can be
the highest standards of actionability that categorised on the spectrum of bespoke to
clients require. standardised -a group discussion would be
This emphasis on research rather than an example of the former and television
market(ing) was also evident in that a audience measurement the latter. The
number of the measurement models were majority of, but not all, brand equity
either evolved, or had their forte, in the fast tracking services were claimed to be
moving consumer goods (FMCG) arena bespoke to the circumstances of the
and were not always as convincingly client's brand. The author has previously
applicable for durable, service or corporate asserted that as brand equity becomes
brands. increasingly important, and gains the
Given that seminar delegates. who worked attention of the City and corporate CEO's,
in non-FMCG companies outnumbered its measurement needs a common
those from FMCG companies by two to standard7. lf the execution of equity
one this may be indicative that the former measurement is bespoke, such that it
group remained more keen to find varies from one sector to another, it
appropriate brand equity tracking solutions. becomes difficult for a common standard to
emerge which may prejudice the wider
SOME CURRENT ISSUES IN 'BRAND acceptance of the concept.
EQUITY TRACKING' It is instructive that any tracking of a
It is not the purpose of this paper to brand's equity should be performed in a
critique the research companies' services: competitive context: understanding one's
however, it is more constructive to review own brand in isolation can lead to
some observations that were drawn from complacency. However, in many cases the
the author's simultaneous exposure to consumer's competitive context does not
nearly a dozen of the leading processes. necessarily follow the neat industry
There seem to be more similarities than segmentation. The first inclination to
differences in the ways in which equities construct a competitive set for equity
are monitored. Many underlying concepts measurement along functional/product
and principles used in the construction of lines may not be the most appropriate.
the different processes are essentially Thus, to explore Nike's brand equity it may
similar - although the way they are be as appropriate to define the comparison
packaged and branded gives them their set as being other 'youth status brands'
distinctiveness. For instance, as previously (e.g. Sony, Levi's and Hilfiger) as it would
described, those ser- vices that measure be other brands of trainers (e.g. Reebok,
brand equity in a spatial sense tend to Adidas and Puma). As many of the
follow the same three stage principle: commercial equity measurement
processes are derived from a re- search
– What attributes do consumers (rather than marketing) perspective their
associate with the brand(s)? inclination to use standard competitive sets
– What are the motivators that are requires consideration.

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lust as it is important to develop an fun interior of its out- lets), related to sound
understanding of a brand's equity outside (e.g. the old Milk Tray advertising tune) or
itself (i.e. its competitors) it is also critical related to smell (e.g. most food brands).
to evaluate its equity inside itself (e.g. Conventional data collection techniques
across different purchaser affinity groups) cannot adequately report on these types of
.As marketing budgets become more brand associations, thus they may not fully
pressurised, and as media targeting represent a brand's equity among
becomes more precise, it is ever more consumers. One response to this may be
prudent to consider the Pareto effect, to assume that an the brands being
colloquially passed on as '20 per cent of a surveyed have a similar balance of verbal
brand's users account for 80 per cent of its an non-verbal associations and so the
sales'. Put simply, it is not essential - reporting win be done on a 'level playing
neither is it affordable -to expect that a field'. Another response might be to
brand's equity is similar for all of its consider measurement processes that at
purchasers or considerers. A brand cannot tempt to assess non-verbal components of
expected to have the same character and brand equity - or at least ascertain that
strength of equity among all of its they might exist.
purchasers. It is important to identify the In part related to the above mentioned
brand's core franchise and expect to find factor, most quantitative data collection
that it has a strong and vivid equity among favours rational answers rather than
them. If that is not the case they may not necessarily right answers. This point was
be core purchasers for much longer! made by one speaker at the seminar who
Conversely, one should not expect to find said that it would be easy for a target
that a brand has a powerful equity among audience respondent, when stopped in the
consumers who are not as important to a street and asked the question, 'Which
brand (e.g. light category purchasers, brands of lager are refreshing?', simply to
those driven principally by price). A answer only, 'Heineken', even though
mechanism for segmenting a brand's he/she really believed that all brands were
franchise should always be used as a equally refreshing.
'microscope' with which to view the Fortunately, there are data collection
conclusions of an equity measurement techniques that can be used to militate
exercise. This observation was not against this problem. Rather than having
referenced overtly by many companies, but the respondent associate, or not, brands
it is an important consideration to enhance with an attribute, a rating scale can be
the marketing actionability of a brand employed to understand the strength of
equity measurement process. this association -in effect respondents are
being compelled to align all the brands on
SOME TECHNICAL CONCERNS IN the dimension in question rather than
'BRAND EQUITY TRACKING' quitting the process after only one or two
Quantitative market research data have been mentioned. Another approach
collection is essentially a verbal or written endorsed by some of the companies-at the
process: Respondents are asked, or seminar is termed 'vertical questioning'.
shown, questions and are expected to Instead of the traditional approach,
speak or write their replies. In projects 'horizontal questioning', in which
where the enquiry focus is more factual or respondents are required to consider a
behavioural this does not raise too many dimension and rate all brands according to
concerns. However, in studies where it, they focus on one brand and rate it
ascertaining consumer s associations, across al1 the relevant dimensions. This
perceptions and feelings about brands is 'vertical questioning' is better able recreate
important this does raise an issue. Brand a situation in which consumers are allowed
associations of ten can be visual (e.g. to consider each brand holistically and is,
MacDonald's golden arch or the lively and doubtless, closer to the reality of how

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consumers perceive brands in normal life. other audiences who can have a
Finally, the concept of 'consumer need significant impact on the long-term
states' is becoming more influential in ac- performance on that brand, either
cessing brand equities. The premise for directly or indirectly by influencing the
this is that depending on an individual's consumer some time in the future. The
circum- stances and needs his or her commercial tracking services that were
requirements from a product category and represented at the seminar (with one
brand wi1l vary. Thus, for instance exception) concerned themselves
'consumer need states' for alcoholic drinks exclusively with a consumer audience.
will vary in-home and out-of-home which – As the importance of brand equity rises
will in turn have an impact on brand up the corporate agenda should
equities. An extreme example of this would measurement studies be targeted
be a premium malt whisky brand which beyond, as well as to, marketing?
would have a far stronger equity for the in- CEO's, Finance Directors and
home drinker than for (the same) out-of- institutional shareholders should be
home drinker. The author would not aware of how corporate assets are
recommend the measurement of a brand's being managed and understand the
equity for every conceivable 'consumer effect of any investments in them.
need state' - a 'total picture' is far simpler There is a growing belief that sales and
for all to understand -but it might be a profit reports tell only part of the story of
consideration for a more detailed analysis the underlying health of a brand.
of how a brand 's equity is comprised.
'Most people agree that in time the
KEY QUESTIONS TO CONSIDER financial markets will pay more attention to
ABOUT BRAND EQUITY TRACKING Directors' stewardship of the long-term
In conclusion, perhaps, marketers who are state and value of the assets that they are
contemplating conducting a measurement managing, rather than any short-term profit
of their brand's equity may like to consider fluctuations'
the following questions. Marketing Week, 3rd July 1997
– As you are doubtless intending to use
this research as an input to brand If senior management and their corporate
planning and strategy development, or advisors are to become audiences for
as an assessment of the achievement brand equity measurement reports it is
of past marketing activities, would it not critical that not only should standardised
be preferable to consider measurement approaches be employed but that their
approaches that start from the conclusions can be expressed in a highly
perspective of marketing strategies as succinct format. A good test of this would
opposed to re- search techniques? be to imagine how equity tracking results
– Should the focus of measuring brand would be documented in the company's
equity be solely the consumer? Brands annual report to shareholders.
have meaning and value to several

1. The journal of Brand Management (1998), Volume 5, Number 4, pp. 222-308

2. Feldwick, Paul (1996) 'Do we really need 'Brand Equity'?', The journal of Brand Management, Volume 4,
Number 1, pp. 9-28
3. Keller, K. L (1998) 'Building, measuring and managing brand equity', Prentice-Hall Inc., New York
4. (1997) 'Financial Reporting Standard 10', The Accounting Standards Board, London
5. Ambler, T. and Barwise, P. (1998) 'The trouble with brand valuation', Marketing Metrics Green Paper #2,
London Business School
6. Kokkinaki, E and Ambler, T. (1998) , Marketing metrics survey results' , Marketing Metrics Green Paper #3,
London Business School
7. Cooper, Alan (1998) 'Brand equity - a lifestage model', Admap, January

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