Brand Economics – Definition

Our Brand Economics service uses a combination of econometric and financial modelling to estimate the impact of brand and marketing activity on financial performance. It identifies short-term incremental payback and longer-term value creation, to help brand and marketing managers to champion their causes.

The process

The process analyses the impact of causal variables including brand and marketing activity on financial performance measures such as sales, consumption, or market share

There are three key steps, which can be completed in isolation, or better still, combined to provide a coherent picture of the brand's performance.

Three Key Elements

Consider the macro economic and market environment in which the brand operates
Research the micro economic performance of the brand and in its competitors
Use a discounted cash-flow analysis to put a robust value on the brand and the business it operates within. Typically conducted on a segmented basis

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