brandannual 2019

Brands
PHENOMENON BRAND
IDENTIFICATION
DIFFERENTIATION
USP—UNIQUE
SELLING
PROPOSITION
PROTECTION
PSYCHOLOGICAL
ECONOMICAL
Brands are in people's minds
Brands influence behaviour and attitude
Brands develop experiences and emotions
Brands create orientation, trust and loyalty
Brands create a competitive edge
Brands create profitability
Brands create growth
Brands reduce risks
∂ © European Brand Institute
Although brands are created by tangible investments
in advertising and other marketing activities,
the resulting brand is the idea or meaning that is created
in the consumer’s mind. It is an intangible asset.
Beyond this, and unlike software or patents, a brand
only exists as a subjective state in the consumer mind.
From a company’s point of view, the question becomes,
how do you assess the value of a brand when brands
are so intangible as to be essentially subjective.
THE LATEST INTERNATIONALS STANDARDS
set rules for the assessment of brand management and
the monetary valuation - for
something that exists in the
consumer’s head.
To do this we have to first
evaluate the strength of the
brand according to the latest
international standards. These
standards specify the different
kinds of indicators of brand
strength that can be used to evaluate the power of the
brand idea or meaning in the consumer’s mind. Many
indicators have been developed by marketers and used
to measure brand strength. A simple one would be to
ask consumers which brand in a category they would
pick if they could have any of them regardless of price.
The final step in determining the value of a brand
Foto: Schedl
”The implementation of international
stan dards is the key
to being able to treat brands
as intangi ble assets.”
Dr. Gerhard Hrebicek, MBA
Chairman Brand Global Council
is to relate the evaluation
of the brand to one
or more metrics of financial
performance. The
performance on financial
cash flow determines the
monetary valuation of
the brand.
The value of a brand
for a company can thus
be measured even though
brands are inherently
intangible and subjective.
For such measurements
to be accepted
and implemented, however,
standards must
be implemented so that
measurements are consistent
and comparable
across organizations and over time.
The implementation of these international standards
is the key to being able to treat brands as intangible
financial assets so that they may be fully taken
into account in corporate governance and in transactions
among companies as well as in investment decisions.
The Business and Investment Magazine brandannual 103