Brand Potential Index (BPI)

DEFINITION of 'Brand Potential Index (BPI)'

The correlation between a given brand's market development index and its brand development index for a specific market or geographic area. The Brand Potential Index (BPI) compares actual and potential customers within a market area to the percentage of consumers within a geographic area in the United States who buy a product compared to the percentage of all consumers in the entire United States who buy the same product. It is always calculated for a limited geographic region.

BREAKING DOWN 'Brand Potential Index (BPI)'

The Brand Potential Index is a tool that can be used to forecast future sales, and to assist in the budgeting process for advertising allocations. Use of the brand potential index can be part of a firm's arsenal in finding a competitive advantage. The index, which can help identify key drivers that have the greatest influence on brand strength, is based on the rational, cognitive, emotional and behavioral characteristics of perception. Companies ranging from giants like the major airlines to small and mid-size businesses use the BPI as part of their brand management and development strategies.

RELATED TERMS
  1. Brand Management

    A function of marketing that uses techniques to increase the ...
  2. Brand Identity

    Brand identity is the way a business wants consumers to perceive ...
  3. Brand Loyalty

    When consumers become committed to your brand and make repeat ...
  4. Brand

    A distinguishing symbol, mark, logo, name, word, sentence or ...
  5. Brand Personality

    A set of human characteristics that are attributed to a brand ...
  6. Brand Equity

    The value premium that a company realizes from a product with ...
Related Articles
  1. Investing

    The Power Of Branding

    It's the ultimate economic moat, and we look at the approaches and effects of good and bad branding.
  2. Financial Advisor

    Why These Are the Most Valuable Brands of 2015

    A company's brand can be worth billions of dollars. Here are the most valuable global brands in 2015.
  3. Investing

    How Companies Create A Brand

    We take a hands-on approach to creating a brand, and see what it can mean as an investor.
  4. Entrepreneurship & Small Business

    Explaining Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent.
  5. Insights

    Top 100 Most Valuable Global Brands 2016

    A look at the BrandZ 100 Most Valuable Global Brands Report
  6. Investing

    Understanding Brand Identity

    A brand identity comes from visible elements, such as the company name, the design of its logo, its packaging design, and colors, tagline and typeface.
  7. Insights

    Top 20 Brands Worth More in 2016 (WPPGY, AMZN)

    A look at the top 20 brands whose value has increased in 2016.
  8. Markets

    Sector Spotlight: Rise of the Disruptor Brands

    Find out how the success of technology-based companies like Facebook, Netflix and Uber has helped drive consumer expectations to extraordinary heights.
  9. Markets

    If You Love a Brand, Should You Buy Their Stock? (AMZN,NFLX)

    Is there a correlation between brands consumers love most and the performance of their stocks?
  10. Financial Advisor

    Top Tips for Creating a Financial Advisory Brand

    A properly constructed brand can help capture more business. Here are some tips to achieve that goal.
RELATED FAQS
  1. Why is brand equity considered an intangible asset?

    Brand equity is an intangible asset because the value of the brand is not a physical asset and is instead determined by consumer ... Read Answer >>
  2. How does brand image and marketing affect market share?

    Building a positive brand image is a must for companies that want an edge over the competition. Learn how marketing and branding ... Read Answer >>
  3. What are some of the benefits of positive brand equity?

    Learn how having positive brand equity enables companies to make a higher margin on sales and spend less money on marketing ... Read Answer >>
  4. What are some of the ways that a company can improve its brand equity?

    Learn why brand equity is so valuable in business. These strategies for gaining high exposure and a great reputation will ... Read Answer >>
  5. What impact does brand equity have on profit margins?

    Learn how both positive and negative brand equity affects profit margins by influencing profit per customer, sales volume ... Read Answer >>
  6. What are some examples of companies or products that have outstanding brand equity?

    Brand equity is the heart of reputation building for companies and products. With solid equity, the quality of a service ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center