As we delve into this topic, perhaps it will be important to clarify the distinction between brand value and brand equity. "Brand value is the net present value of future cash flows from a branded product minus the net present value of future cash flows from a similar unbranded product—or, in simpler terms, what the brand is worth to management and shareholders. Brand equity is a set of perceptions, knowledge and behaviour on the part of customers that creates demand and/or a price premium for a branded product—in other words, what the brand is worth to a customer. Brand equity may also be defined as a set of elements such as brand associations, market fundamentals and marketing assets that help distinguish one brand from another". This distinction is provided by Munish Kumar Tiwari an Assistant Professor in the MBA Department at Anand Engineering College.
It is not a secret that some personalities command more respect than other; for examples sake, Tiger Woods (one of the world's best golfer of all time), was to request a meeting with the President of the US Barak Obama. There are high chances of the President considering the visit. On the other hand, if an ordinary individual was to make the same request. The probability of the request to not even reaching the President is much higher. And, why is this? because Tiger Woods brand equity is much higher than the ordinary Joe in the street.
It is important to note that, not only does brand equity increase because of one being just good at your craft; but, to increase your brand equity takes effort beyond your craft. I am sure there are other golfers who are currently playing better than Tiger Woods, but, why is he well known and acclaimed more? We have seen him as brand ambassador for the wrist watch label and on other endorsements. All these efforts and contributions helped increase his brand equity. And now he is worth more than just an ordinary professional golfer. On and off the golf pitch, he is world renowned.
The mechanisms used to measure a personal brand will not be discussed, however, it is evident and important to understand that personal brands have earnings, and, are worth taking care of.
