ABSTRACT
Empirical evidence suggests strong brands influence a firm's financial performance and consumer choice at the point of purchase. Conventionally brand performance is measured in three ways. The first concerns "brand valuation": making a financial evaluation of a brand by estimating a valuation for it; treating the brand as an asset of the firm and placing it in the long term assets section of a balance sheet. The second measures "brand value": calculating, in financial terms, the contribution branding brings to the firm over a given financial period. The third measures the strength of a brand, termed "brand equity." The market differentiation element of strong brand equity, a brand's ability to differentiate a firm from its competitors, influences greater return on investment and cash flow return on investment. Investment in marketing communications is required to strengthen the awareness and perceived quality of the brand set.
