Building Brand Values

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We frequently refer to 'brand values' as if everyone knows what we mean. It is assumed that there is a general understanding that a brand stands for something and what it stands for must have a value. These values can be critically important or small inconsequential things but above all they are the things which give the brand its worth and differentiate it from all others. Through these brand values a product or service is enhanced beyond its functional purpose. In this context the brand provides the consumer with more value and this is why they are prepared to pay a premium to acquire it. Various brand value research studies have been carried out in consumer markets to determine the premium that people will pay for brands over and above a base line. Measuring brand value and assessing the value of intangibles by asking consumers to separate out the brand and place a monetary value on it is difficult because this is not what we do in the real world. In fact, most consumers, when asked to place a monetary value on brands, are in denial about paying a premium just for the name. That is for all the other mugs, not for me. That said, when people are asked in brand value surveys to place a monetary value on a car (the same car is used in the photographs but different badges are superimposed on the bonnet to suggest it is a different brand) the Volkswagen brand is seen to be worth more than that of Ford while the Mercedes brand has a value above both. In each case, the brand is seen to be worth around 10 per cent of the retail value of the car. Over the last few years there have been many listings of the value of brands. One of the most famous is carried out by Interbrand for the journal, Business Week. This annual brand value research study of the world's top 100 brands assess brand values on a variety of issues such as strategic brand management, marketing budget allocation, marketing ROI, portfolio management, brand extensions, M&A, balance sheet recognition,...
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