Not measuring brand equity is like managing your brand with your eyes closed
A Brand is a heritage made of assets and liabilities which can add or detract value to a company. Consumers and customers continually contribute to determine a brand equity via their purchases, engagement and consumption.
Brand Equity is the balance (net result) of competing exerted by consumers, customers and the economic environment in general, including competitors.
Brand Assets are the returns on the investments made by a Brand, are what gets sedimented over time.
Brand Liabilities are the investments made to build the Brand, including Marketing expenses (Product, Communication/Advertising, Pricing, Availability/Distribution, Innovation…)
The effects of external elements outside the brand control such as category and market dynamics, changes in consumers behaviors, effects of competitors’ activities and the general economic context and trends can be assets or liabilities depending on their effect on a brand “ecosystem”.