Who Owns Your Brand?

Profitable companies invest in their brand and do realize tangible value in brand equity that creates an ROI in current and future sales.  Companies financially “cash-in” on this equity when the organization is acquired and it usually appears on the balance sheet as “goodwill” and is included in the selling price of the company.

Unfortunately, based on this financial scenario, many companies view their brand as something they own based on this “goodwill” equity that can be realized.  Smart brand managers know that this is far from the truth.

We use the term “brand equity” to measure the amount of brand loyalty that our product or service has in the marketplace.  A company that has strong brand equity has assurance that there are customers who will continue to purchase its products or services in the future.  That is the true definition of a brand’s value.  Without the customer loyalty, brands have very little value and are worth not much more than the paper they are printed on.

Smart brand managers view their brand as “owned” by the marketplace – since that is where the equity resides.  Without loyal customers, brands have very little worth.

The job of marketers is not to be “brand owners” but to be “brand stewards” – constantly understanding the needs of its customers and ensuring that the brand lives up to the expectations of its true brand owners – the marketplace.