The value of a brand, creating it, maintaining it or, even better, growing it, is of significant importance to any enterprise that currently has brands. Brands influence customer choice, and the power of a brand’s attraction influences sales today and tomorrow. And yet the measurement of brands and their value remains a complex topic to explore, with many divergent points of view.
The totality of a brand’s value often only comes into focus when an acquisition occurs and the acquiring entity must establish a value to put on its balance sheet to account for the brand or brands it acquired. So, if book value for brands generally understates their value and other proprietary methodologies contain assumptions that can be debated, is work to value a brand still inherently worthwhile?
MASB President/CEO Tony Pace and MASB Fellow Stephen Diorio of Forbes CMO Practice explain why marketers should seize the moment and embrace new standards for evaluating the financial contribution of the brand.