ISO 10668:2010 – Brand Valuation Management System

There are a number of different methods that can be used to value brands, and the choice of method will depend on the specific objectives of the valuation. Some common methods include

• market-based methods,
• accounting-based methods, and
• economic-based methods.

Market-based methods look at the market value of the brand, which can be measured by the price premium that consumers are willing to pay for a product with the brand.

Accounting-based methods look at the financial impact of the brand, which can be measured by the brand’s contribution to profit or the brand’s value to the firm.

Economic-based methods look at the economic value of the brand, which can be measured by the brand’s impact on consumer willingness to pay, brand equity, or brand loyalty.

No matter which method is used, there are a few key considerations that should be kept in mind when valuing brands.

• First, it is important to consider the specific objectives of the valuation. What decision is the valuation supporting? What information does the decision-maker need?
• Second, it is important to consider the timeframe of the valuation. Are we looking at the short-term value of the brand or the long-term value?
• Third, it is important to consider the scope of the valuation. Are we valuing the brand as a whole or just a part of the brand?
• Fourth, it is important to consider the perspective of the valuation. Are we valuing the brand from the perspective of the company or from the perspective of the consumer?

The process of valuing brands can be complex, but it is an important tool for managing brand value. By understanding the different methods that can be used to value brands and the key considerations that should be kept in mind, organizations can make more informed decisions about how to manage and grow their brands.