Brand equity is the value that a brand adds to a product or service. It is an intangible asset that includes a company's name, logo, tagline, and other elements that differentiate it from its competitors. Brand equity can have a significant impact on consumer behaviour, and it can influence the decision to buy or not to buy a product. A strong brand can also help companies to charge a premium price for their products or services, and it can create customer loyalty.
However, the process of valuing a brand can be challenging, as it is an intangible asset. To address this issue, the International Organization for Standardization (ISO) has developed ISO Standard 10668 & ISO 20671. These standards provide a framework for determining the financial value of a brand, and it outlines methods for assessing the brand's strengths and weaknesses, estimating future revenues, and calculating a brand's net present value.
The importance of brand valuation cannot be overstated, particularly in the context of mergers and acquisitions (M&A). During an M&A transaction, the value of a brand can be a significant factor in determining the purchase price. For example, if a company is acquiring another company primarily for its brand, it needs to know how much that brand is worth. Similarly, if a company is being acquired, it needs to understand the value of its own brand to ensure that it is being compensated fairly.
Management has a significant responsibility in protecting and creating more brand value and equity. They must understand the importance of brand reputation and its impact on the company's success. This requires a holistic approach that considers all aspects of the business, including the product or service offering, marketing, customer service, and employee satisfaction. In addition, management must be proactive in managing their brand's reputation, which includes monitoring social media and responding to any negative comments or reviews.
Creating and protecting brand value requires a long-term commitment. Companies must invest in marketing and branding activities that build brand awareness and loyalty. They must also ensure that their products and services meet or exceed customer expectations, as this is an essential component of brand value. By creating a strong brand, companies can differentiate themselves from their competitors and establish a loyal customer base willing to pay a premium for their products or services.
ISO 20671 is a standard developed by the International Organization for Standardization (ISO) to provide guidelines for conducting a brand valuation. Brand valuation is the process of determining the value of a brand, typically for financial or strategic purposes.
The standard provides a framework for conducting brand valuation that is transparent, credible, and reliable. It outlines the key principles and concepts involved in brand valuation, as well as the steps that should be taken in conducting a valuation.
ISO 20671 emphasizes the importance of using multiple approaches and methods to determine the value of a brand, including financial and non-financial measures. It also highlights the need for transparency and objectivity in the valuation process and the importance of considering the specific context and purpose of the valuation.
Overall, ISO 20671 is intended to provide guidance to organizations and practitioners involved in brand valuation, to ensure that their valuations are accurate, reliable, and useful. /
In conclusion, brands and brand equity are important assets for any business. Valuing a brand can be a challenging process, but ISO Standard 10668 provides a framework for making this process more transparent and objective. Furthermore, management has a significant responsibility in protecting and creating more brand value and equity. By investing in branding activities, providing excellent customer service, and monitoring their brand's reputation, companies can create a strong brand that adds value to their business and drives long-term success.
Public FREE Resources relating to: (1)Intellectual Properties, (2)Trademarks, (3)Madrid Protocol, and (4)Brand Registration.
1) https://www.ipos.gov.sg/manage-ip
2)https://www.wipo.int/madrid/en/
3)https://www.ipos.gov.sg/about-ip/trade-marks/managing-trade-marks
4)https://www.wipo.int/madrid/en/
5)https://www.ipaustralia.gov.au/international-ip/international-cooperation/international-trade-mark-system
6)https://euipo.europa.eu/ohimportal/en/madrid-protocol
