How to measure your brand value?
- Wenjia
- Sep 19, 2017
- 4 min read
Here are some questions we get the most from business owners:
How much should I pay for the logo and website?
Is the cost equal as the brand value?
Why is visual identity important to my business?
What is the difference between hiring a graphic designer and a branding firm?
Is that your product or your brand stick in your client's head?
Before answer any of these questions, we need to help you define your brand value to your business and your clients.
Identifying your brand value and discovering how you can increase it is a critical part of growing any business. However, most CEOs tend to overlook the brand value in favor of content development, email marketing, digital marketing practices and other core marketing activities. They, in turn, end up neglecting their brand image, which is a key influencer of your reputation in the market. In other cases, marketers and business owners do not understand the value a brand can bring to a company. Remember your brand is what customers and prospects think of upon seeing your logo or hearing your brand name; the overall public perception of your company, products or services. Just as your style represents your personality in a general way. See if you can think of some of these top brands’ logo, product or service below:
Top 10 Most Valuable Brand 2017 - Forbes.com
How did these brand calculator their brand value? Measuring the value of your brand is therefore important as this is what distinguishes your products and services from those of your competitors. As well, working with branding and identity development experts such as professional design firm is another sure way of improving your company’s visual presentation No matter how complex the value concept seems, below we will show you some reliable ways on how to determine your brand value for better leadership and investment strategies in future.
Based on TheBalance.com, there are three proven brand valuation techniques and approaches, ideal for any business or investment. By applying these three techniques, company should have a good idea how to improve/retain the current "brand" worth. 1. Cost-Based Brand Valuation This method estimates the total costs incurred in the establishment of a brand. To determine the total amount, a company would have to sum up all the costs incurred since the brand's inception. This means taking into consideration the brands assets, liabilities and individual costs such as registration costs, licensing costs, advertising costs, promotion expenditures, campaign creation expenses among others. Cost-based brand valuation method is useful both when creating a brand or re-branding. The brand value obtained using cost-based brand valuation equals the historical/replacement cost for the brand. However, keep in mind that the total figure may not represent the current value of your brand accurately. But certainly, it is a helpful starting point when evaluating a brand's progress.
2. Market-Based Brand Valuation When a seller is marketing a property, they typically look around the neighborhood and check the prices of similar houses before setting a price tag for their property. Market-based brand valuation uses a similar approach where one makes a comparison of similar brands that have in the marketplace. You then estimate the brand's value by considering related market transactions such as stock market quotation of previous sale of a comparable brand. When using this method, an assumption is made that the brand value is relatively equal to the transaction price, offer or bid for reasonably similar brands. 3. Income Approach Brand Valuation
This method, also referred to as the in-use approach, proves to be the most reliable and least consistent of all the three brand valuation techniques. It is based on the expected future net earnings of a particular brand. The brand value is determined by hypothetically predicting future cash flow over the remaining economically productive life of the brand. The brand value obtained using this approach equals the present value of income, cost savings or cash flows from the asset.
Conclusion
Depending on the objective of your valuation, choose the most appropriate brand- valuation approach to determine a fair value. Implementing these brand development concepts in your business or any other commercial setting is a great step towards realizing the high ROI of branding.
Your brand value is what sets stage for the entire business or company. It is a long term work in every drop of the water you put in the business. A logo is an important symbol of your business identity, but it is not the brand value. Nor the designer who created your logo. These are the outfit of your business; the product and service you provide and the standard you hold on to are the blood and soul of the brand value. Your creative concept further defines the core of your marketing message for result driven marketing. With this insight, it is clear that measuring and improving the brand equity can contribute to a company’s ongoing success greatly. It is one sure way of ensuring your business has a sustainable competitive advantage.
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