Application of Brand Value Index to Marketing Management

Abstract

Brand has been estimated in business valuation to determine the economic value of intangible asset, however it is demanded to measure brand value for the marketing management under this recession. Therefore we need new measurement to understand customer evaluation. The purpose of this paper is to introduce new index for brand value and clear the process of brand forming. Under marketing research with 30,000 samples, it is revealed that brand value consists of three axes, “Penetration”, “Activity” and “Loyalty”. “Activity” is divined to 4 elements “Function”, “Trust”, “Personality” and “Necessity”. This brand value shows correlation with the market share after 6 months thereby it can be a predictor of the market trend. In addition, we succeeded to classify brands and analyze them with product life cycle. This approach is still on trial and we need further investigation, yet this measurement will support business leaders who decide the marketing strategy.