Brand Value ± 10 Ways To Create It

July 6th, 2005 · Tags: 1 Comment · 2,951 views ·

Consumers love brands because they offer an extra value²that is, one in addition to the core product or service. That value becomes the major motivation for consumers to buy or use the product. How precisely is this value being added and incorporated into the brand? Advertising professionals say it is advertising. Consumers love the ad²so they¶ll love the brand. Other marketing experts are suggesting that a consistent and total brand experience is the key. Brands are not human-like and they do not have a life of their own outside the consumer¶s mind. They are instruments, simply means to achieve ends. Emotions cannot be glued to them. They arouse emotions when they are perceived as a source of something beneficial. The positive emotions are direct outcomes of these anticipations. Their various symbolizations (name, logo, font, emblem and so on) have little impact on their own; their importance is mainly as identifiers of sources of already attributed and anticipated benefits. The act of branding has 10 different meanings, which translate into 10 different ways to create instrumentality or usefulness beyond the tangible benefits of a product/service: 1. Creating a Conceived Linkage to a Tangible Benefit Creating a conceived linkage between the brand name and other identifiers and a tangible benefit (a result in the physical world or an experience). That benefit is provided by the product itself or any component of the marketing mix. 2. Forming a Mental Context A concept or an organizing principle that allows the consumer to connect unrelated facts by guiding intent or by some other common factor. In these cases, the main benefit of the brand to its customers originates in the mental context. 3. Directing an Experience The branding here is the creation of an expectation that allows an experience richer than what the product alone can offer. 4. Creating a Means of Self-Presentation Branding creates a symbol with a meaning that is well known to everybody in a relevant group. It enables the consumer to characterize himself and is used by him for inner communication, for interpersonal communication and for public communication.

planning. 2005 · No Comments · 1.5. We go to the gym to prevent the degeneration of our bodies. its meaning widely known as well. 7. mergers and acquisitions. That kind of symbol enables the consumer to make a very specific statement and/or express a very specific emotion. That guide helps them to understand what¶s happening around them and informs them which behavioral ways are normative.630 views · Tags: ·brand valuation. 10. importance. fatal love. 6. Similarly. murder and so on Brand valuation ± 7 applications June 14th. Creating an Alter Ego The brand is a way for the consumer to behave (at least on a fantasy level) in a manner he would like to but doesn¶t dare. 9. Brand Value. which because of our lifestyles don¶t get to face the challenges they are otherwise capable of confronting. Creating a Means to Deliver a Message The branding role in this approach is to create a symbol of another kind. or isn¶t willing to pay the price for. royalty Since seven seems to be the magic number which relates with brand value and brand valuation let¶s check seven applications of brand valuation: . potential. Building an Emotional Gym Opting for our civilized and protected lifestyle. we watch movies to exercise emotional skills that aren¶t legitimate or acceptable in our lifestyles. Creating µa Long Hand¶ The branding creates means for the consumer and empowering him or her to act for noble objectives and high purposes that she can¶t achieve by herself. 8. we compromise a lot of our possibilities as humans. Consumers fantasize about irresistible sex appeal. internal marketing. success. Facilitating Fantasies This branding approach helps the consumer to fantasize an alternative reality. Building a Social/Cultural Authority The next branding approach is the creation of an authority that the consumers can use as a guide. omnipotence and dominance. what will make them happier and so on.

Now many successful companies use brand valuation as an ongoing business performance indicator: to help ensure that brand strength is reflected in share value. Internal royalty rates Across a large organization there may be many affiliates. . Litigation support Brand valuations have been used to support litigation against the illegal use of a brand name (as a basis for calculating damages. The result is that more and more international organizations are planning the most cost-effective domicile for their brand portfolios and are organizing their tax affairs with their brands in mind. Related posts: 1. As the profit potential of brands becomes more clearly understood more companies are charging royalties.. to prevent the assets of the business being undervalued. The objective of. For example: brand valuation figures can be used to evaluate new product and market development opportunities.. First off.com website. 5.. a brand valuation can lay the foundation for appropriate charges.. for example) and also in cases of receivership. 4 Brand Valuation Methods Value has different meanings to different people. Licensing and franchising Where companies allow outside organizations to use their brand. on a licensing or franchising basis.... Tax planning As the management of brands as financial assets becomes more sophisticated. Interbrand/BusinessWeek global brand league table has inherent. subsidiaries or divisions that make use of any particular brand. so tax authorities around the world have started to take an interest in how these assets are managed.. 3. Internal marketing management Brand valuation is increasingly being used as a management tool in leading organizations. 2. especially in the US.. to set business objectives or allocate budgets. New Global Brand Valuation Study Despite its dominance.. 4. Approaches to Brand Valuation Interesting article on brand valuation on 4hoteliers. across their business operations. 7 elements of brand valuation The [tag]Interbrand[/tag] model of brand strength is a useful framework.External investor relations Mergers and acquisitions were the original driving force for brand valuation. As a result brands have been used to secure loans.. Securitized borrowing Even in the conservative world of banking. the asset value of brands has been recognized. where companies such as Disney have borrowed significant amounts of money against their brand name. for the use of these brand assets. Evaluate Your Brand Brands are the most valuable assets that many companies have.

brand valuation. consumer preferences. Long-established brands in any market would normally score higher. . as well as some ideas on how to move forward. as they are less susceptible to competitive attack. Market: 10% of brand strength. 10 Key Attributes of Brand-Guided Company Booz Allen Hamilton and the brand consulting firm Wolff Olins. Leadership: 25% of brand strength. Brands in markets where consumer preferences are more enduring would score higher. regional brands.. Stability: 15% of brand strength. trademark The [tag]Interbrand[/tag] model of brand strength is a useful framework to consider the performance of your own brand.302 views · Tags: ·brand strength. references. national brands. The long-term profit trend of the brand is an important measure of its ability to remain contemporary and relevant to consumers. Protection: 5% of brand strength. but the quality of this support is as important as the quantity. A market leader is more valuable: being a dominant force and having strong market share matters. consistent investment. investment. Brands that receive consistent investment and focused support usually have a much stronger franchise. 7 elements of brand valuation May 30th. Support: 10% of brand strength. Securing full protection for the brand under international trademark and copyright law is the final component of brand strength in the Interbrand model.6. Profit trend: 10% of brand strength. Consider these seven points and you should get a better sense of the strength of your own brand. because of the depth of loyalty they command. 2005 · No Comments · 2. Geographic spread: 25% of brand strength.. Brands that have proven international acceptance and appeal are inherently stronger than regional brands or national brands. Brand Value.

. Evaluate Your Brand Brands are the most valuable assets that many companies have. 3 Important Elements of a Brand Strategy Brand strategy is one of the most fraught areas of.... First off. New Global Brand Valuation Study Despite its dominance..Related posts: 1. The objective of. 4. 3. 2. Brand valuation 7 applications Since seven seems to be the magic number which relates. Tags Absolut Apple Disruption Success Drivers TBWA Winner Brands Archives y May 2009 TBWA Study will Identify Future Winner Brands May 15.. 2009 THE BRAND REPORT was initiated by TBWA Europe and Prof. 6. 5.com website.. 4 Brand Valuation Methods Value has different meanings to different people. Dr.. Approaches to Brand Valuation Interesting article on brand valuation on 4hoteliers.... Interbrand/BusinessWeek global brand league table has inherent.. Christian Bluemelhuber ..

³ said Perry Valkenburg. ÄOur research will identify great examples of disruption from all areas of business. It will identify the most interesting brands doing business in Europe. Brand Director Europe of TBWA\. the scientific team will define the key success drivers of winner brands. a joint research with CEREM: The Euromarketing Research Lab in Brussels. brands with a great growth and disruption potential. Art Basel. ³They have successfully managed to leapfrog market rules and to create new value curves.³ ads Ulrich Proeschel. ³With the help of international experts and our European network we will identify brands. as a business theory was invented by TBWA Chairman Jean Marie Dru. meaning smart thinking. but created new ones. Disruption. that understand the importance of creativity.´ ³The Brand Report will deliver unexpected results across categories and country boarders.³ ³Iconic brands like Apple. companies that are real smart thinkers. it will identify examples of Disruption from all areas of business. Absolut or even Bono have not only learned how their brands live in the heart and minds of their audience.´ says Dr. both for them and the people that have decided to live with them. Christian Bluemelhuber. it is about challenging rules. Director of CEREM and professor for Euro Marketing at the Free University of Brussels. that not only changed markets. President TBWA\ Europe and COO International.TBWA\ Europe announces the partnership with Prof.³ The Brand Report will identify original thinking companies and brands. As a result of the partnership a study on future winner brands will be published in fall 2009. Based on a detailed analysis of the Top-10 brands identified in the research. ³We want to celebrate original thinking brands. Since 1996 Dru has published three books on the topic. New Cone Report Values America s 100 Leading Nonprofit Brands FOR IMMEDIATE RELEASE Contact: . Bluemelhuber and the launch of THE BRAND REPORT project.

Cone. ³Valuing their brands gives them a license to demonstrate to companies and other partners that there is an established and justified cost to aligning with their organization.com 617. we want to help nonprofits better understand how to protect and evolve their brands to generate as much revenue as possible. making it the nation¶s most valuable nonprofit brand.Andrea List Cone alist@coneinc. executive vice president of Knowledge Leadership and Insights.8418 NEW REPORT VALUES AMERICA¶S 100 LEADING NONPROFIT BRANDS As nation copes with economic crisis. Cone. of these. which despite being multibillion-dollar organizations.´ The Top 10 The Top 10 Nonprofit Power Brands are a Who¶s Who of some of America¶s most beloved and recognizable organizations. developed the new brand valuation to provide nonprofits with the information and inspiration they need to make their brands work harder. 2009) ± The YMCA of the USA¶s brand is worth almost $6. ³Through this valuation. in collaboration with Intangible Business.´ says Alison DaSilva. The two surprise findings on the list are Catholic Charities USA and The Arc of the United States. six are domestic social needs organizations with long legacies of service and touch points in communities across the country.4 billion. domestic social needs proves to be the most valuable nonprofit sector BOSTON (June 24. according to The Cone Nonprofit Power Brand 100. This first-of-its-kind research explores the unique relationship between nonprofit brand image and financial performance and revealed some organizations may be leaving millions of dollars in potential unearned revenue on the table.939. have significantly lower brand image rankings than their peers in the Top 10. Power Brand Organization Sector Brand Value Revenue Brand Image . among several other metrics. Brands were valued based on five years of consolidated financial data and a nationally representative consumer perception survey.

168.8 11 1 9 Health 1.9 4.534.6 5 96 10 Boys & Girls Clubs Education/Youth of America 1. reveal the ³brand image´ of each organization. including media coverage and the percent of revenue from direct public support.393. These results.6 4.223.359.768.8 6 18 6 Catholic Charities Domestic Social Needs USA Habitat for Humanity International American Cancer Society The Arc of the United States 2.1 4 53 7 Domestic Social Needs 1.3 8 21 Brand Image As a crucial component of the valuation.361. Cone conducted a proprietary national survey of 1.0 9 4 8 Health 1.100 Rank 1 2 3 YMCA of the USA Education/Youth The Salvation Army Domestic Social Needs United Way of America American Red Cross Goodwill Industries International Domestic Social Needs $ Million 6.516. combined with other perception factors. In addition to many of the Top 10.9 Rank 1 3 2 Rank 6 2 3 4 Domestic Social Needs 3.000 American adults to gauge the familiarity and personal relevance of each organization.2 7 5 5 Domestic Social Needs 2.702. other organizations who swept the brand image chart included: . The American Cancer Society stood out with the strongest brand image due in large part to its standing as the single most relevant nonprofit organization among consumers.146.

Special Olympics and Make-AWish Foundation of America ± may not sufficiently be leveraging their strong brand images to generate greater revenues. it is an indication that there is unmet opportunity left on the table. international business valuation director for nonprofits. environmental organizations also have the highest growth spikes in revenue of all nonprofits studied. The results found nonprofits with a clear mission/issue in their titles (e. the study revealed a number of insights into the specific nonprofit issue sectors. For example.. the research also uncovered a disconnect between some organizations¶ brands and their financial performance. consumers consider this sector to be the least familiar and least relevant. yet many disease-specific nonprofits clustered indistinctly toward the center of the ranking. Other key sector findings include: y y y A majority of the environmental/animal-related nonprofits ranked in the bottom half of the list and had similarly low brand rankings. some organizations. The largest nonprofit sector is international needs. and. which may indicate they have occasion to grow their appeal to broader or more diverse audiences. Intangible Business. at a time when the nation faces an economic crisis and basic human needs are paramount. Several leading nonprofits ± including The Humane Society. 8 Brand Image (Power Brand 100 Rank: 58) Make-A-Wish Foundation of America No. ³This critical synergy between an organization¶s financial performance and its brand plays a significant role in generating additional funds to put toward mission services.y y y y American Heart Association No.g. Conversely. The health and education/youth sectors are the most familiar and most relevant to consumers. 9 Brand Image (Power Brand 100 Rank: 35) The Humane Society of the United States No.´ Sector Insights In addition to the brand valuation.´ explains William Grobel. ³The goal of a brand valuation is to determine the amount of money a brand contributes to a nonprofit¶s revenue. such as Catholic Charities and The Arc of the United States. 7 Brand Image (Power Brand 100 Rank: 12) Special Olympics No. domestic social needs is the most valuable nonprofit sector. but inconsistently low brand images.g. Brand-Revenue Synergy By examining both a nonprofit¶s image and its revenue. in some cases millions of dollars in potential revenue. When either significantly outperforms or lags the other. City of Hope). however. the National Cancer Coalition) have higher consumer perception rankings than organizations in the same sector whose names are more ambiguous (e. have substantial revenues. 10 Brand Image (Power Brand 100 Rank: 55) The consumer survey also revealed a key takeaway for all nonprofits ± say what you do. Ten domestic social needs nonprofits were included in the top quarter of the list.. which accounts for 30 percent of the 100 organizations ranked. however. .

com). To determine the consumer perception of each nonprofit.y Health nonprofits are also the most likely to generate revenue from special events earning more than $1. Cone solicited consolidated five-year revenue data. ³Today¶s nonprofits are on par with the world¶s leading companies ± generating substantial revenue and competing for the attention of elusive consumers. as reported to the IRS.intangiblebusiness. Cone is a member of the Omnicom Group (www.com).´ For a complete copy of The Cone Nonprofit Power Brand 100 and a detailed methodology. Intangible Business has a presence in over 12 countries around the world. Headquartered in London. About Cone: Cone (www. including the US. they are increasingly taking a professional approach to managing their brands and ensuring they clearly communicate everything the organizations stand for.´ says DaSilva. environmental and/or animal-related nonprofits based on financial data. ³A compelling brand is an invaluable tool in the arsenal to generate critical funds. secure rewarding corporate and government partnerships and appeal to consumers. Video commentary from Cone and quotes and video from many of the Top 10 Nonprofit Power Brands are also available. Brand Marketing. please visit www. from each organization on the list and consolidated 2007 itemized revenue and expenses.omnicomgroup. UK.com/nonprofitpowerbrand100 or contact Andrea List (alist@coneinc. Cone creates stakeholder loyalty and long-term relationships through the development and execution ofCause Branding SM. Cone commissioned a nationally projectable online survey fielded by Opinion Research Corporation.8 billion from events alone.coneinc.000 American adults age 18+. About Intangible Business: Intangible Business (www. Corporate Responsibility andCrisis Prevention and Management initiatives.com) is a leading independent brand valuation consultancy. a consumer survey and other metrics.coneinc. To respond. ### Back to Current Happenings . About the Study: The Cone Nonprofit Power Brand 100 values 100 leading social service. employees and volunteers. Intangible Business¶ consultants combine formal accounting and marketing qualifications with significant experience in industry and consultancies. Each organization was evaluated by 1.com) is astrategy and communications agency engaged in building brand trust.