Brands and brand equity: definition and management

This article assumes that brands should be managed as valuable, long‐term corporate assets. It is proposed that for a true brand asset mindset to be achieved, the relationship between brand loyalty and brand value needs to be recognised within the management accounting system. It is also suggested that strategic brand management is achieved by having a multi‐disciplinary focus, which is facilitated by a common vocabulary. This article seeks to establish the relationships between the constructs and concepts of branding, and to provide a framework and vocabulary that aids effective communication between the functions of accounting and marketing. Performance measures for brand management are also considered, and a model for the management of brand equity is provided.