Brand potential index (BPI),
Definition of 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-sized businesses use the BPI as part of their brand management and development strategies.
The relationship between a brands market development index and its brand development index (BDI) in a particular market area. The BPI, or brand potential index, is typically used to predict future sales as well as to aid in planning for future advertising budget allocations.
The brand potential index (BPI) is the correlation between a brand's development index and its market development index for a specific market or area. The Brand Potential Index (BPI) takes the number of actual and potential customers within a market area and compares it to the percentage of consumers within a geographic area in a nation who buy a product, then compares that to the percentage of all consumers in the entire nation who buy the same product. BPI is always calculated for a limited geographic region to give its users a better idea of how specific areas factors into its sales and marketing planning and forecasts. .
Meaning of Brand potential index (BPI) & Brand potential index (BPI) Definition