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value to organisations. Lindenman in Clifton & Simmons (2003 pp28) reports on the US Federal Reserve study into tangibles as a percentage of all assets of non-financial business showing a dramatic increase in the importance of intangibles in the 20th century. Her claim is that a high proposition of this is due to the value of brands and reports on findings that purport that brand values of companies like Coca-cola had a worth in 2002 of $69.6 billion. In the Relationship Value Model , the brand asset is derived through actors holding tokens that explicate the brand. But the model also posits that the value is only realised by another actor or organisation in the exchange of value through a network in which convergent values are exercised. This means that brand values are only available through relationships. If, as Lindenman suggests, the brand value of a company like McDonald's, is 70% of its stock market value, there is a problem for either the brand model or the Relationship Value Model . In the Relationship Value Model there is no brand recognition without relationships. The very nature of a brand is that it depends on relationships and it is in the nature of relationships that there is a capacity to spread brand values. In both cases, the real value is primarily in relationships. This would value relationships more highly than brands and makes claims of brand value being 70% of stock market valuation seem very strange. The alternative argument is that it is the brand experience that causes relationships to emerge and develop. In the instance of a process applied using the Relationship Value Model described in this paper (above) it becomes clear that this is not the case. The process demonstrates that the first priority is to identify tokens in a landscape of actors and their tokens to identify of convergence between actors' tokens and values in order that relationship can be developed. The brand experience happens after the process of Relations Management has begun and created the further, experience, tokens that identify the brand. This means that a company that wanted to include brand values on a balance sheet as a component of goodwill would need include the value of the associated relationships first. Drawn from Lindenman's analysis of brand valuation models, it is worth pausing to look at how brands are valued to see the difference in approaches between the Relationship Value Model and the Brand Management Model. There are a number of ways that brands are valued. The research based approaches go to consumers to ask about awareness, knowledge, familiarity, relevance, image attributes, purchase considerations, preference, satisfaction and recommendation. This approach does not integrate well into economic models and mixes and matches tokens and relationships. In the Relationship Value Model , this would require a process such as a social frames approach to tease out the relevant components to identify brand tokens and knowledge, environment and relationship interactivity to be helpful. Using a model to value brands as an aggregation of historic costs does not work well in the Brand model or in the Relationship Value Model . Financial values, such as historic cost are but one element and do not identify the process that builds both relationships and the token values associated with the brand.
Demand analysis adds a further metric which identifies various drivers of demand and the degree to which each is directly influenced by the brand. support. The Brand earnings are calculated by by multiplying the role of these measures with by measures of intangible earnings. brand proposition. the actor comes first which means that in managing brand issues including the place. The first is market segmentation. A token held by one person can (often) have different values to another. be artificial. It was going to use 'low unemployment' in the pantheon of tokens it offered the electorate. it is the relationship that comes first. taxes and cost of capital for each 'market segment' or. price. Its value had changed under pressure from external influences. Other forms of market segmentation will. in the Model. The economic use valuation method also includes Financial analysis of forecast earnings less operational cost. The most accepted method for valuing brands is based on economic use with five components. Will they be that same as the classic model above? Assuming the original foundation for the above components is good. In step with each other. with implications for unemployment. It is this difference that differentiates brands and their value. In the Relationship Value Model this equates to those consumers with a nexus of material tokens. by comparison. This complex process is widely used but is flawed at each stage because it does not distinguish between the brand attributes (tokens) and the relationships they offer through convergence with actors. when we do the research. meant that the Labour Party lost one of its strong tokens. In the Relationship Value Model . leadership position. we may find some divergent views. This derives a measure of intangible earnings. The way that brand are managed is often based on a brand value model. To be effective there is a need for a generic brand and a premium brand to be operating in the same 'market'. one can see the values change from internal influences. there is nothing by way of evaluation of the network and its/their relative performance. the brand valuation model is able to calculate brand value. stability. Brand elasticity would seem to have more than one dimension. In another context. there should be a good match. nexus of relationships. Identifying actors and the values they place on such matters may be interesting but what will be important is what attributes are given by the actors and the values they give to such attributes. This token was used in concert by the Labour Party actors to associate his . That values change is easy to understand. I have a feeling that. Added to a competitive benchmarking process (brand's market. growth trend. trust and corporate social responsibility have a different foundation upon which the value of an organisation and its brands can be valued and prosper. In addition there is a need to be able to identify those brand tokens that actors hold which commands the premium price. the actors still could deport their strong token of the 'economy' but realised that the 'employment' card had changed into a threat. geographic footprint and legal protection) provides a reality check and thence. promotion. For those looking for a financial valuation. processes. The demise of the car company Rover. In addition. products.Brand valuation using comparisons between similar brands has problems in the brand model because it is the nature of brands to differentiate between them. Brands are often differentiated by the premium price that can command which is a way of valuing them. 'Gordon Brown' as a token was a valuable strength because of his successes as a Chancellor of the Exchequer. Note. Here again we explore the nature of consumer's tokens. The brand proposition had to change too. In the Relationship Value Model . there is a need to be able to value the different tokens and the values that actor ascribe to them. this is not as difficult. In the original study we can see evidence of actors in an organisation changing values.
Empathy between a customer and salesman adds value to organisations through the exchange of goods for money. never a popular figure in any society.success with electors desire for a stable economy. sold or reflected in share price. person or place. One can see this in every day life. In many walks of life and at a different time. The resulting values add new wealth both as a trading asset and in exchange when the brand is. This value can be enhanced when such transactions enhance brand values according to DeChernatony: A successful brand is an identifiable product. The process for achieving this state of affairs is quite explicit and is covered in the chapter The Application of Process to the Relationship Value Model below. unique. It would seem that the process of optimising convergence to benefit the organisation creates wealth. Branding in this context adds value in the classic Relationship Value Model . for example. the Chancellor is seen as the personification of the taxman. They had created value from the 'Gordon Brown' token which (one may assume) translated into votes. The process is one of convergence of interests between the brand owner and the customer. . augmented in such a way that the buyer or user perceives relevant. service. The Labour actors brought the attributes of the economy into convergence with the electorate's desire for a stable economy despite the reality that Mr Brown had increased taxation during his tenure of office. sustainable added values which match their needs most closely.