Marketing Metrics: A Surrogate of Firm Valuation

Abstract

Valuation has always been of an interest for financial purpose nevertheless, with the brand valuation; marketing practitioners understand the prominence of valuation with marketing metrics such as brand valuation and customer equity. The subjectivity exists because there are no standardized valuation models. What can be the components of marketing metrics and do they evade the intrinsic value. Concepts such as brand equity and customer equity are being commonly linked to firm value and shareholder value. Can investors rely on financial statements that divulge such metric as brand value? The aim is to develop a framework that identifies the key metrics and link to business performance.