Finding sources of brand value: Developing a stakeholder model of brand equity
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RICHARD JONES is an assistant professor at the Copenhagen Business School. He carries out research in the areas of marketing management and communication. His research is multi-disciplinary, reaching across boundaries between communication, organisation and marketing disciplines.
Abstract This paper reflects the current interest in brand research into non-consumer relations and their role in brand value creation. It presents a model of stakeholder equities as a tool for brand managers to assess the value of multiple stakeholders in relation to the brand. A stakeholder–brand value model is then developed to strengthen understanding of the sources of brand value. It is argued that brand value is co-created through interaction with multiple strategic stakeholders. Considerations for brand managers and suggestions for future research are presented.
INTRODUCTION
Richard Jones, Department of Marketing, Copenhagen Business School, Solbjerg Plads 3, Frederiksberg, DK-2000, Denmark Tel: ⫹45 3815 2159 Fax: ⫹45 3815 2101 E-mail: [email protected]
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Discussion of brands and brand equity have, up until now, been almost solely concerned with consumer markets.1,2 A number of recent publications have, however, begun to seriously look at the application of the brand concept and that of brand equity to business-tobusiness (B2B) markets.3–6 These works reflect the growing consensus that the branding concept is not only useful, but also powerful, in examining and explaining relationships and value creation in all business relationships. These developments reflect two important trends in business in general and brand management in particular. First, the importance of relationships, not just relationship between the firm and consumers but also the relationships between businesses in B2B markets7 and other stakeholders. Secondly, that brand equity in par-
ticular, and brand value in general, is not just created through a dyadic relationship, be it between the brand and the consumer or the industrial brand and the customer, but is a multifarious construct that is affected by, or the sum of, a gamut of relationships.8 These developments are occurring within the context of a more stringent requirement on managers to document the value of their activities and their contribution to the bottom line. There is a clear indication that financial performance is the key measure of success today. Firms need to be able to justify their activities and investments to shareholders in terms of value creation.9,10 Indeed, industry appears to be moving into an era of economic marketing or value-based marketing.11 Brand managers are thus being
HENRY STEWART PUBLICATIONS 1479-1803 BRAND MANAGEMENT VOL. 13, NO. 1, 10–32 OCTOBER 2005
DEVELOPING A STAKEHOLDER MODEL OF BRAND EQUITY
challenged on two fronts. First, to broaden their view of brand relationships to consider a range of different stakeholders where brand value is created. Secondly, to be able to assess and put a value on the worth of these relationships. Following the argumentation proposed
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