Microsoft Continues to Build Brand Equity


Image representing Microsoft as depicted in Cr...

Image via CrunchBase

Knowing where a brand stands among its competition and other business is important information for marketers. As such there are a number of reputable agencies that publish brand rankings and Interbrand is one study that is well done.  There are three key aspects to the methodology that Interbrand uses to calculate the list of best brands; “the financial performance of the branded products or services, the role of brand in the purchase decision process, the role of the brand in the purchase decision process, and the strength of the brand to secure earnings for the company.” (The Standard. September 21, 2010) This is important for marketers and companies to know where they rank because improving brand equity increases financial value.

Microsoft brand has maintained a third place ranking. In 2008 Interbrand’s study listed its brand value at $59 billion (Trosclair, C. September 29, 2008) and in the latest 2010 study Microsoft retained its third place position. Microsoft is a very diverse company with many consumer and business to business products. Despite its growth and large share in its product segments Microsoft puts out products that create backlash with consumers and with many global lawsuits it is a company with some rough edges. Not to mention a number of failed projects like the Windows phone.

To understand why it retains its high ranking on the Interbrand studies it’s important to note exactly what is being valued; the impact brand has on the value of the company. Consumer sentiment is not one of valuations of the study. Microsoft performs very well in most of the segments it competes in and has been an industry leader with many core products that drive corporate America. Despite Apple’s success with reaching creative and media agencies, you don’t see many Fortune 500 companies running Apple platforms, they run Microsoft Windows, Office, and Microsoft Outlook just to name a few. Microsoft products play a large role in consumers’ minds during the purchase decision process. Manufacturers know this; it’s why every computer other that Apple comes preloaded with Windows and other Microsoft programs. So the brand can be worth so much because of what is being measured and the impact the brand has on the consumers purchase process.

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One response to “Microsoft Continues to Build Brand Equity

  1. Pingback: Because even we don’t know everything | Newman Partnership's Blog

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