Holistic Methods

These methods see brand equity as a whole entity and measure its entire outcome. These methods focus on everything that can affect the overall brand equity. They analyze the loyalty of a brand’s customer base, marketing communication, distribution channels, and points of similarity and differentiation that set the brand apart from its competitors.

Holistic methods are ideal for determining the financial value and the utility value of the brand. The focus is on brand preference rather than the customer’s response.

A particular holistic method, the residual method, only focuses on brand equity after it removes physical attributes of the brand from the equation. Furthermore, the evaluation holistic approach only focuses on the financial aspect of the marketing programmes merger/acquisition programmes, sponsorships, fundraisers, etc.

Valuation approaches this will place the final value on the brand equity for accounting purposes, mergers, and acquisitions.

Both methods are effective, although they focus on different features. The comparative methods focus on measuring brand equity through customer response, while the holistic methods take on a different approach and measure customer preference. However, both types of methods can be used as good indicators of future ROI.