- It must be done many assumptions that have to be maintained over time so that the results are comparable
- Part of the calculation uses variables that are beyond the control of the company (and with a brand experience that “per se” is a chaos to continue adding uncontroled factors… you know!)
The value of the brand gives us an idea about the value of the relational capital of the company, part of its intangible assets, and therefore, part of the total value of the company. It is a part of the whole explanation.
What is interesting in terms of branding is that the best results of this kind of assessment are byproducts of the process and not the result itself.
For several reasons, I do not go into the valuation models (which are less than what it’s said):
- I am not an economist
- It is not the point of debate
- It’s more boring than what I’m writing here and now
In any case, returning to the process, we can decide which actions to take to generate greater demand on my key customer segments, or what elements should be improved in order to strengthen our brand (reducing risks) against my competitors … And in all this, the value isn’t necesary!
So the questions are:
- For what do we value the brands?
- To establish a common language in the company (with the risk that if others understand me, I would give more tools to discuss what I do and I don’t)?
- Is it necessary or is merely a matter of fashion?
- Would not it be better to think of models like the balanced scorecard that allows us to make decisions? (speak of it in the coming days … promise!)
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