Brand valuation: from marketing department to boardroom
This idea of brands functioning as corporate assets, rather than expenses, might seem obvious now, but was the basis for some revolutionary thinking. The breakthrough was to express the value of brands in financial and accounting language – the language of the board-room – and to integrate marketing frameworks within that.
The challenge now and into the future is ensuring that brand valuation is done properly in the first place so that it can be used as a fundamental and consistent piece of management and measurement information throughout an organisation. Through constant development of brand value metrics, we can now understand the precise economic benefits that brand has on every aspect of a business.
It is now possible to not only quantify a brand's contribution in the decision making process and measure its competitive strength in acquiring and retaining customers, but to predict the value of an innovation and understand which elements of the brand experience and customer touchpoints should receive the most investment to generate the best return. (Increasingly important now that the vast majority of brands have a service element and multiple touchpoints).