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Measuring Brand Health
Measuring Brand Health
1 1
P.K. Kapur Aditya Gupta 2
Nitin Sachdeva
1
Amity University, Noida, UP, India
pkkapur1@gmail.com
akgupta@amity.edu
2
Department of Operational Research, University of Delhi, Delhi, India
nitin.sach@gmail.com
ABSTRACT - Most of the companies today are unable to identify message highlighting company’s success story to be quickly
how brand health is connected with future revenue expected from grasped by the customers. It is therefore applied with
customers. Their sole focus for building brand is through continuous affirmative consistency all across the marketing channels. One
advertising, which indirectly creates a brand image. In reality, image of the major reasons for such an absorption strategy adopted by
building is not the sole purpose of brand health rather the entire
business performance is derived out of few specific interrelated
a company for its employees and agents, is to build what we
measurable elements. Often brand equity has been linked to call is brand health. With only such a meticulous application it
shareholder value [35] as an intangible, long lasting metric of a is possible that the brand’s effect grows on to become
company, which hardly affects top-line growth. By contrast, brand impressive to the consumers.
health is tangible and is linked to current and future value with
consumers. Brand health measures the state of the brand in the minds For the past several decades, researchers have been concerned
of both internal and external stakeholders (e.g. prospects, customers, with measuring effectiveness of different kinds of entities in
employees, investors, and public influencers). Therefore, effective different activities in many different contexts across the globe.
management & monitoring of brand health can significantly impact Sproles ([32]; [33]) postulated that Measures of Effectiveness
and influence organization’s profit. With special emphasis upon (MoE) are required to answer the question “Does this meet my
marketing and business performance measures, brand owners identify
need?” and hence defined MoE as: “standards against which
which of the attributes act in favor or against adding value to the
brand, and identify fundamental forces behind these perceptions. For the capability of a solution to meet the needs of a problem
example, Knowing thoroughly constitutes a brand, drive customers to may be judged. The standards are specific properties that any
choose it over rival brands also assists organization in optimal potential solution must exhibit to some extent. MOEs are
allocation of their resources so as to fulfill brand’s potential. independent of any solution and do not specify performance
Subsequently these decisions can then be related back to top-line or criteria”. He distinguishes between Measures of
financial results to measure other performance metrics. Hence, in Performance (MoP) and MoE by declaring that MoP measures
order to build and manage brand over time to deliver increased value the internal characteristics of a solution while MoE measure
to both the customer and business, it is fundamental to measure brand external parameters that are independent of the solution – a
health.
measurement of how well the problem has been solved.
In this paper, we focus on only few prominent factors as identified
from literature and attempt to analyze and determine the overall utility Since companies long back realized that brand lives in the mind
derived from these factors in measuring effectiveness of brand health. of the brand consumer, and only those at the peak of brand
The study is based on the responses sought from teachers and staff health have the strength to push through and lodge there.
members of a private university, located in North India. The Hence it’s imperative to deliver a consistent strategy across
questionnaire relating to the brand health factors instruments was both customer and firm to measure brand health effectively.
administered to the sample population and the findings indicate that Brand owners need to take the complete ownership of how their
these factors enhance organizational performance and play a vital brand is holding up.
role in the growth of an organization.
Brand health can be measured taking 360 – degree view of
Key words: Brand health, Brand Equity, Utility Measure, brand in the marketplace. It is required to be focused on
Business Performance consumer & competitor. All factors consider in measuring
brand health should be linked to the business performance.
I. INTRODUCTION
Most of brand health measurement has been done by a few
In almost all sorts of communications, be it marketing material, major global players. They have merged various social and
website promotions or for that matter the language consistently behavioral data to determine brand Health. Leading vendors of
used by an employee, resonates the vision, mission and values tomorrow will be those that reinvent themselves to meet
of an organization. These communications very finely represent marketers’ demands for more integrated data solutions.
sets of visual carriers and an appropriate though concise
for each of them. The probability of each element being on an Table 4: Overall Utility Measure ‘Average Case Scenario’
average effectiveness takes a value ‘1’ subsequently leading to
VII. MANAGERIAL IMPLICATIONS
the average utility value for each element (Table 4). This
eventually gives us the average utility (Table 4) that can be In this paper, the proposed utility model helps in monitoring the
derived from these set of elements of brand health. key attributes of brand health from both organization’s as well
Levels as customer’s perspective. Such a metric helps organization in
revealing their true market position in comparison to its
Critical Brand Factors Weights Very Very Expected
Contribution to
Total Expected
competitors. Additionally the proposed framework provides a
Poor Average Good
Poor Good Level Weight
Utility (Ui) platform for dynamic brand management and assists in
designing appropriate strategies to rationalize the allocation of
(Wi) 2 4 6 8 10 their resources in positioning themselves to win in a market and
Brand Recall 12 1 10 120 subsequently improve top-line sales.
Brand Recognition 18 1 10 180
Availability of Product 9 1 10 90
Liabilities 9 1 10 90
VIII. CONCLUSIONS
Attractiveness 9 1 10 90
Distinctiveness 11 1 10 110 There are so many elements that don’t capture the essence of
Likelihood to Buy 10 1 10 100
Switch to a
whatever they are supposed to do for a healthy brand. Some of
6 1 10 60
Competitors them don’t even recognize the importance of defining the
Usage/ Frequency 6 1 10 60
Total Spending in the
application type and development environment to measure and
10 1 10 100
brand identify the relative importance of brand health. This paper
Total Utility
Overall Utility Measure 'Best Case Scenario'
Measure
1000 demonstrates the use of utility of attributes alone and taken
Table 2: Overall Utility Measure ‘Best Case Scenario’ together and compares the results to validate the importance of
measuring brand health in order to enhance overall brand
Very
Levels
Very
Contrib
ution to
equity. The relative weights assigned to each of the brand
Critical Brand Weights
Poor
Poor Average Good
Good Expected Total attributes in the proposed work model highlights the
Factors Level Weight Expecte
(Wi) 2 4 6 8 10 d Utility consumer’s perspective towards the importance of that attribute
Brand Recall 12 1 2
(Ui)
24
and provides better insight in overall estimation of the utility
Brand
18 1 2 36
value. One of the major contributions of this paper lies in
Recognition
Availability of
identifying brand attributes that require immediate attention
Product
9 1 2 18
based on the utility derived from each of them. Additionally,
Liabilities 9 1 2 18 the technique can also be used for benchmarking system
Attractiveness 9 1 2 18
Distinctiveness 11 1 2 22 standards based on organizational goals and objectives.
Likelihood to
10 1 2 20
Buy
Switch to a
6 1 2 12
Competitors REFERENCES
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