The terms brand valuation and brand evaluation are in the news with the launch of unanimously-approved global standard ISO 20671 Brand Evaluation – Principles and Fundamentals.
How different can these terms be that differ by just one letter?
The new standard puts forth a framework of principles for conducting a brand evaluation, which includes brand valuation.
Brand Evaluation refers to the measurement of the value of a brand using relevant indicators that assess the impact of the brand on customers/users. It includes both non-monetary and monetary considerations.
Brand Valuation refers to the estimation of the monetary value of a brand in a transaction whether it is internal or a purchase, sale or licensing agreement. It is the financial equity the company has in the brand as a transferable asset.
Another way to look at it: Brand valuation is defined from the brand owner’s point of view. Brand evaluation is defined from the stakeholder’s point-of-view.
MASB represented the U.S. in the development of the standard under the auspices of the American National Standards Institute (ANSI). To help facilitate its adoption, MASB is offering virtual debriefing sessions for brand owners. To request one, contact [email protected].