Global brand evaluation standard ISO 20671 recognizes that a brand’s primary purpose is to “increase total business value, reduce risk, and extend the sustainable existence of the brand-owning entity.”
The International Organization for Standardization (ISO), recognized leader in setting international standards for industry, brought together standards boards from around the world to publish this global standard for brand evaluation designed to grow brand-owner value.
Because brands are too often treated as incidental business expenses, the new standard calls for brands to be proactively managed and measured at least annually “to increase entity value as established by improvements in brand strength and brand performance and ultimately indicators of financial results.” The standard applies to both internal and external brand evaluations, including those done by analysts, investors and lenders.
Applying ISO 20671 “creates a feedback loop for the continuous improvement of a brand that leads to greater value for the entity over time. By investing (changing the composition and level of brand input elements) based on such feedback, brands can be improved to provide greater benefits and better experiences to customers and other stakeholders and higher returns on the brand asset to the entities which use and own the brand.”
According to MASB, the standard is especially relevant for marketers who have been called upon by investors for greater accountability. ISO 20671 “constitutes a basis or departure point for high-level corporate planning and governance, including best practices for brand management.”
“Accountable marketers should love ISO 20671 because to be in compliance, they will have to value their brands regularly,” says MASB President/CEO Tony Pace. “That will be marketers’ Golden Ticket – not only to fund measurable brand value growth initiatives but also to measure the marketing contribution to enterprise value.”
ISO Technical Committee 289, which developed the new standard, is chaired by Bobby Calder, Kellstadt professor of marketing in the Kellogg School of Management at Northwestern University. He also serves as MASB Advisor and co-leads the Brand Evaluation Standards Project.
“The marketing accountability movement has achieved an important milestone and increased its momentum with the unanimous passage of ISO 20671,” said Calder.
MASB represents the U.S. under the auspices of ANSI, the American National Standards Institute. SAC, the Standardization Administration of the People’s Republic of China, serves as Secretariat. TC289’s other participating member countries include Austria, Barbados, Canada, France, Islamic Republic of Iran, Italy, Mexico, Russian Federation and the United Kingdom. There are also 26 observing members.
“The new standard for brand evaluation integrates the best practices of brand development and marketing,” said Mr. Liu Pingjun, President of the China Council for Brand Development. “It will play an important role for manufacturers, service providers, consumers, consultants and brand evaluators.”
To help facilitate adoption of the standard, MASB is offering virtual debriefing sessions for brand owners.
To request one, contact info@themasb.org.
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