According to IAS 38, an intangible asset defines as “an identifiable, non-monetary asset without physical substance” including brand, computer software, patents and copyrights. As this typical asset has no physical substance, it is really difficult to recognize and measure it. This essay mainly aims to explain the difficulties to recognize and measure generally intangible assets especially the brand and some analyze refer to the Enigma example will be shown.…
Intangible assets are getting more and more important to companies or businesses. The reason for this is that the economy has changed from being industrial to knowledge-based. It is no longer the industrial value chain that creates value; it is innovation and constantly seeking new ways of meeting market demands. Companies can no longer differentiate themselves or create competitive advantages without intangible assets. Brands can be defined as any design to identify and distinguish one product or a group of products from other product. But brands are more than just the name or sign. In general, the companies create a unique image of the branded product or service, of its quality and attributes in the perception of the customers. Especially in the consumer product industry they are regarded as a key competitive factor which influences the consumer preferences for a product and therefore the sales of the company. Due to this important of brands for the economic development of certain businesses; the accounting treatment of brands has been a matter of debate and controversy, especially recognition and measurement topic both of intangibles generally and of brands in particular. This essay aims to discuss the difficulties relating to these issues.…
A company’s ability to buy and sell property is essential to its long-term life and vitality . An excess of intellectual property can burden a company by directing limited funds towards maintaining registrations, defending against third-party claims, or creating and marketing a final product1. Thus, licensing intellectual property can have an immediate positive effect on a company’s finances, generating revenue and decreasing costs1. Although trademark licensing can yield positive results, it’s important to be aware of its drawbacks and pitfalls that could result in serious and permanent repercussions for the brand . This paper provides the basic introduction of a trademark as well as examines the fundamentals of trademark licensing, the considerations…
To explore brand equity: its creation and using brands as platforms for growth; the risks and benefits of a product line extension (including congruent vs. incongruent extensions) using an existing brand name; and the concepts of cannibalization and brand alienation. To practice marginal analysis, breakeven analysis, net present value (NPV) analysis, and sensitivity analysis, emphasizing the difficulty in choosing between qualitative and quantitative information in making key strategic decisions.…
Within the context of evaluating marketing opportunities, brand value relates to the intangible aspects of a company that act as a major source of competitive advantage and benefit for both consumers and sellers. For example, a strong brand value allows for a faster purchase decision process for consumers as information can be gathered quickly, and alternatives will often not be considered with equal weighting. Healy confirms this stating that “Good brands create shortcuts in product choice” (p. 136).…
1. Many methods of valuing brands have been discussed, including those by Interbrand and Millward Brown (WPP BrandZ), which each use a wide range of criteria in their calculations. Discuss the strengths and weaknesses of these two models and suggest improvements to them…
Some marketing researchers have concluded that “brands are one of the most valuable assets a company has”, A, Neumeier, Marty B (2006). Another source suggest “brand value is one of the factors which can increase the financial value of a brand to the brand owner”, Grannell, C (2009).Time Warner states…
The ranking is based on the brand’s ‘dollar value’, calculated by using an economic use approach; the brand value…
The Brand Value Chain(BVC) is a structured approach to assessing the sorces and outcomes of brand equity and the manner by which marketing activities create brand value. It provides insights to support the various decision makers in the company and stresses that every member of the company contribute to this branding effort. It believes that the value of rand ultimately resides with customers. There are several steps to this when we look at this value creation process.…
It is important to assess a brand’s current achievements and stature. It is even more powerful when the future…
The goal of this article by Rego, Billett and Morgan is to uncover the relationship between consumer-based brand equity and firm risk from financial angle.…
11. ISBERG, S., & PITTA, ,. D. (2013). Using financial analysis to assess brand equity. Journal of Product & Brand Management, 22(1), 67-78.…
A chips brand has recently been launched, but its performance has not been too good. The large promotional investments put in have not yielded lasting returns. You are told to investigate what’s wrong with the brand.…
A brand can be an endless and profitable asset as long as it is maintained in a good manner that can continue satisfying consumers’ needs (Batchelor, 1998; Murphy, 1998)…
Economics has showed that the largest extent of commercial corporations’ value comes from options and unanticipated choices in their portfolio. Brands are special cases of these usual choices, and are exclusive for each firm. Therefore, managers, especially those in charge of marketing boards and marketers must spend more time studying these choices. It is proved that the brand has required capabilities to create value for stockholders and corporations evaluating their merit regarding their tangible assets such as factories, stocks, and cashes have changed their attitude considering brands as precious assets when evaluating themselves with brands having the same importance as other tangible assets do- and approve the significance of managing them accurately and authoritatively. Powerful brands compared to other related patterns not only lead to more turnovers for stakeholders, but also do it with lesser risks (e.g., the risk of making wrong decisions). Concerning the contribution of marketing in the performance of firms, it can be said that the market orientation and organizational culture are two of the firm characteristics worthy to be considered in models studying adaptation of the corporations with the intensity of environmental competitions and how these characteristics impress the performance. Therefore, in order to overcome these limitations, we will attempt to propose a model including brand management from the firm’s point of view. Objectives of the research will be:…