Managing Brand Equity

The most important assets of any business are intangible: its company name, brands, symbols and slogans and their underlying association, perceived quality, name awareness, and customer base. These assets, which comprise brand equity, are a primary source of competitive advantage and future earnings, contends David Aaker, a national authority on branding. Yet, research shows that managers cannot identify with confidence their brand associations, level of consumer awareness, or degree of customer loyalty. Moreover, in the last decade, managers desperate for short-term financial results have often unwittingly damaged their brands through price promotions and unwise brand extensions, causing irreversible deterioration of the value of the brand name.