Knowing a brand’s value, enables Management to make better, more informed decisions when it comes to branding and optimal market positioning. But there is more to brand valuation, though, than just numbers. The real objective is to understand the levers through which brand value is created in order to identify opportunities to grow the value of the brand and business.
The central role of brand value in business decision-making indicates the importance of finding the right way to measure your company brand(s), using the best applicable but even sophisticated brand-evaluation tools. The brand valuation methodology should be grounded in quantitative customer research and potentially be combined with in-depth financial analysis.
Even though Brands are intangible assets, tracking their monetary value can make decisions about a new brand strategy or increased investments in marketing initiatives more accurate and even business-case based. The empiric data shows that a brand really matters to companies. A Brand is one of the most valuable assets for any company, accounting for about a third of shareholder value on average.
By measuring Brand Contribution you can estimate the proportion of financial value that is driven purely by Brand Equity.
A company’s brand contributes significantly to it’s earnings, thus the financial value of a company. This is true not only for consumer packaged goods, but for all sectors, from technology and cars to telecoms and banking. This is not surprising, if you consider that branding is about reputation. A brand generates trust – for a company, for its products, and for its services.
The role of branding is growing. In today’s uncertain economic environment, people are willing to pay for what they can trust, and they are turning to brands. The importance of brands stretches across geographies – brands are as valuable in China and Russia as they are in Germany or in the United States. The last 4 years have shown that brands don’t matter only in good times. Brands help to keep the business up when times are tough.
Growing and safeguarding Brand value is the focus of our attention here at The Consultancy of Dreambuilders. Our goal is to help companies maximize the financial returns from their brand strategy and marketing investments.
Feel free to contact me with any questions, or simply to have a conversation about how we might help make your brand work harder to achieve your business objectives.
Read more on this topic: Choose BRAND EQUITY on the Blog
Find other branding topics