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?Branding Bag? Derrick Daye

Emerging Brand Issue: Brand Value Calculation


There is an ever-increasing pressure on marketers to quantify the impact of brand management activities and investments on short and long term business results. Given the growing recognition that much of a company’s value derives from its non-tangible assets (such as its brands), public accounting firms will increasingly try to quantify the value of brands and their ROI, perhaps in ways that are overly simplified and not acceptable to marketers. Marketers would be well advised to take the lead in this exercise.

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1 Comment

Ted Grigg
Twitter: directguru
on August 15th, 2007 said

As a direct marketing consultant, I am amazed at the higher ROI for direct marketing programs when they have the benefit of a strong brand.

The same offer and creative execution for essentially the same product for company A with a weak brand versus company B with a strong brand make the program unprofitable for one and lucrative for the other.

The question is, how do you use the scientific method to prove it?

Building a strong brand takes years of consistent effort. Either the client believes the effort is worth it based on what he sees competitors doing, or he doesn’t.

I agree that we ought to be able to quantify the results of the branding strategy.

Going from there to valuing the brand over the long term should be a relatively easy step. The brand’s primary value lies it’s ability to make marketing efforts more cost-effective.

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