Issue 22 – November 2010
A powerful brand can differentiate a company in the marketplace and significantly contribute to its financial performance. As an intangible asset, however, it is difficult to measure the exact monetary value of a brand. Brand valuation – Requirements for monetary brand valuation ISO 10668:2010 outlines procedures and methods for measuring how much a brand is worth.
Brands include the names, terms, signs, symbols, logos, and so on that identify goods, services, and entities.
'Brands, like many other intangible assets, are highly valued properties,' says Christopher Scholz, Chair of the ISO project committee that developed the ISO 10668. 'They are used to create distinctive images and associations in the minds of stakeholders to help a company stand out in the marketplace, and to communicate and engage with their customers. Yet they are a little understood asset.
'For a long time companies have struggled to determine the actual impact and value of their brand. ISO 10668 is an important step forward for the industry.'
ISO 10668 guides users through a three-tiered analysis focusing on financial, legal, and behavioural aspects. Examples include the legal rights and protection of a brand, market size and trends, its effect on purchase choices, and the different attitudes of stakeholders towards the brand.
Scholz says, 'The comprehensive three-element analysis introduced in ISO 10668 builds a reliable picture of a brand's value. An added benefit is that it allows companies around the world to measure the economic value of their brands using the same reliable guidelines developed by global experts in the field.'
Summarised from an ISO media release 20 October 2010.