Академический Документы
Профессиональный Документы
Культура Документы
Stock market adjusts the price of a firm to reflect future prospects of its
brands.
1) Find market value of firm --> function of stock price and number of shares
2) Find the replacement cost of tangible assets (plant, machinery, inventories,
cash)
3) Subtract 2 from 1
4)The balance intangible assets is apportioned into three components : value
of brand equity , value of nonbrand factors (R&D, PATENTS) and
value of industry factors (regulation and concentration)
5) Brand equity is presumed to be a function of age of the brand, entry of the
brand in the market (older brand has more equity), cumulative advertising
(advertising creates equity) and the current share of industry advertising
(current advertising share is related to positioning advantages).
Brand value based on Future Earnings
Top of
Mind
Brand recall
Brand Recognition
Unaware of brand