I think most economic analyst finally agree, that the US in a recession.  Now there is much debate about whether or not the traditional economic signs of a recession apply and the debate goes on.  But for marketers, I believe this is the time when brand equity is more important than ever.  I’m sure the current state of the nation’s economy will fuel an increase in the number of mergers, acquisitions, and the even the demise of some products and organizations as a whole. Now is the time for marketers to show their true value, by having a clear understanding of the equity they’ve built for the brands they manage.

The term brand equity is thrown around a lot among marketers quite a bit. But in uncertain economic times like these, it has true monetary value.  For example, your equity in the simplest terms represents the degree to which buyers connect with your brand.  (e.g., Do consumers recognize and desire your product?)  Brands that have high levels of brand equity may or may not survive today’s economic ups and downs.  However it may impact how their ability to survive a merger or acquisition and could give them some leverage in either situation.

Consider Yahoo’s rejection of Microsoft’s takeover offer.  Yahoo’s brand equity is a significant factor in Microsoft’s desire to takeover Yahoo. However it is the equity of the Yahoo brand, which gives it the power to negotiation with Microsoft.  In today’s economy, brand equity could be key the value and survival of some companies.