BRAND VALUE

Distinct identity

As sharper competition leads to increasingly similar products and services, the role of brands becomes more and more important. What matters is the distinct identity of a brand in relation to other brands or non-brand products.

 

Market strength and turnover

Successful brands capture a preferential position among buyers - either consumers or business customers. A strong brand can not only dominate a market but also act as a bridge to other markets. A successful brand provides a guarantee of market strength and turnover.

 

Future income = capital value

In brand valuation, this turnover guarantee is translated into future income flow. When a brand represents future income flow, it can be defined as an asset. The key to brand valuation is the translation of future income flow into indirect realisable value or, in other words, brand capital value.

 

 

 

 

 

Know-how in two worlds

Brand Competence is well acquainted with brand valuation methods and has the know-how required for brand building. Consultants of Brand Competence have many years of experience in marketing and advertising. This experience is vital when it comes to assessing the role played by brand names among consumers and trade target groups. This role primarily involves the qualitative values (brand loyalty, image etc.) which the target groups attribute to the brand. These values are what give the brand its preferential position and ensure that it achieves higher margins than non-brand products.

When knowledge of the communicative value of a brand is coupled with knowledge of the expected outcome of a brand operation, a bridge is built between marketing and accountancy. This is a bridge over a 'grey area' which both disciplines recognise as goodwill (acquired or self-generated), but which is now being clearly integrated for the first time.

Knowledge of a brand's existing value and the know-how to build on that value are of strategic importance in a wide range of applications.

 

 

Brand Competence and INTAA are registered trademarks. All copyrights 1992, 1998 and 1999 are reserved by I.B.A. International Business Agency N.V. , Curaçao, Ned. Antilles and De Smeth & Co. B.V. , Amsterdam, The Netherlands