If we can define brand equity, maybe we can begin to quantify and actually measure it. And then we could add it to the balance sheet like they do in the U.K. How much is your brand worth? Wouldn’t that be nice to know? Here’s my stab at a definition: a bunch of assets, like customer loyalty, perceived quality and name awareness, that contribute (positively or negatively) to the value of a brand. Those assets also include other intangibles specific to a brand. Like a Tiffany blue box is shorthand for quality and a really great gift and gift giver. The perception of that blue box is a brand asset. When we quantify that and other assets, we can begin to quantify brand equity.

Any other definitions out there?

I think Shel has started the discussion in the right direction. I would expand on the current posts by thinking about the definition of brand from three viewpoints.

A brand is made up of the tangible and intangible associations customers form about an organization and its product/services.

These associations can be:
1. Visual (logos, ads, signage, merchandising, office design, etc.)
2. Emotional (feelings derived from interactions with the organization’s people, products, services or promotions).
3. Cultural (”this is the way things are done at this organization.”)

A strong brand will generate positive associations at each customer interaction.

I agree with Shel, let’s set the stage by defining brand beyond the myopic terms of traditional “branding” activities of colorful logos and witty tag lines, creative commercials and unique packaging. Traditionally, brand with lowercase “b” was defined by the shiny, cosmetic make-over job that communication professionals applied as an afterthought to products. In contrast, Brand with capital “B” is defined as the brand experience along all customer-brand touch points. This change has dramatic implications for brand management because marketing communications is no longer the key link to consumers; instead it’s a broad interface of the operations and the front line workers that connect the brand with the consumer. This critical shift redefines brand management as a cross-functional dynamic that, if it is to succeed, must orchestrate the activities of the front line in order to assure a winning, end-to-end service experience. Brand managers need to start measuring the effectiveness of their brand delivery in these customer touchpoint-oriented terms if they hope to effect genuine results for the bottom line.

This strategic view defines the brand as the distinctive promise of customer value that differentiates its associated product, service and organization from the competition. The challenge for the brand stewards is to keep the promise made in the brand’s advertising and other marcom activities consistent with the brand delivery. As in promising great customer service in the ads and putting customers on hold for half an hour when they call. I’m interested to learn what examples you’ve seen recently of brands that do a particularly good OR poor job of delivering on the brand promise?