ANA study ranks brand equity as important, cites warning signs

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New York—Three-quarters of marketers polled by the Association of National Advertisers agreed that brand equity is “very important” to their company’s success. However, marketers need to be cautious of signs that their brand equity may be at risk, the ANA study found.

Respondents were asked to identify warning signs that their brand equity is deteriorating. The top five warning signs are: customer conversion or “repeat versus competitor” slips (70%); the percentage of customers that rate the brand as "excellent" slips (68%); net promoter score slips (67%); growing disparity between the factors that customers rate highly about a company's brand and its brand goals (62%); and the product being sold on promotion, deal or at a price reduction (62%). The study found that marketers recommend the following actions to combat declining brand equity: product innovation (87%); exploring new targets (68%); conducting a root cause analysis (67%); deeper qualitative research, such as focus groups on brand issues (66%); and refocusing of marketing efforts (64%). The study was based on an online survey conducted in February with 297 marketers in the ANA’s brand marketer leadership community.

—Kate Maddox

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