Marketing Online – Marketing Strategies – Marketing Tips – Internet Business

There are a lot of research to measuring the contribution of brands in the value of shareholders, of which the most successful to include in the study “The most powerful brand global” of Interbrand. The research has drawn conclusions: on average, brand names contribute one-third in value stocks. In many cases, brands can understand over 70% value stocks.
The method of evaluating brand

When evaluating an enterprise needs Collectively all assets of businesses which, including brand names. But only until the end ki Cross 80, who have taken the new evaluation methods to help special value of the brand have the right to inspect and evaluate a proper way. If ago, the idea of separate from the brand to measure and assess cause many people suspect, not now, then agreed to propose a method of authentication receive the support and response broadly, the enthusiasm both sides: marketing and finance. To ensure a range requirements of accounting standards, the transfer pricing issues and implement the Licensing; conducting link (merger) and enter the (acquisition), etc. … has led to price brand to become a work extremely important in business operations today.

There are many methods used to evaluate the achievements and value of the brand but is still popular research estimates the property or trademark of purebred khiết use of financial indicators.

If you only use one of two ways, the appraisal value of the brand can not fully and accurately due to lack one of the two elements of either financial, or of marketing. It forced people must think of a way we can combine both the advantages, known as economic methods. This method helps calculate the value of the brand not only in accordance with the principle recreate the current financial but also can use it to compare with all other property of the enterprise. So now it is mentioned and widely accepted one. Trademarks are the price determined by earnings in the future can be earned through brand names, then process this amount of value in using interest rate discount (interest rate discount reflects the level of risks of the amount of interest in the future). Method to “economic” by Interbrand proposed in 1988 and has become the methodology is recognized widely as possible, be applied in 3500 than in evaluating worldwide. This method is based on the basic principles of marketing and finance.

In a marketing aspect, people interested in the ability to generate profits of the brand name for business operations. The first brand to help offing day needs to buy in person – consumers here may be individuals or businesses, corporations. The needs of consumers expressed by revenue based on the quantity purchased, cost and how often. Second, brand attracts faith of consumers in the long term.

In financial aspect, the value of brand value is about enforcement of current earnings expectations in the future have been thanks to the brand. According to recreate convince international financial, cash flow be discounted (discounted cash flow – DCF) and the value of current net (net present value – NPV) of revenue in the future are concepts appropriate to measure price of any type of assets do. Including the tangible property investment is pricing the cost is currently evaluating a professional than DCF. Methods prescribed by the value of current net initially based on cash flow be discounted but today many companies view it as a model economic profit for the financial forecast. By definition, both in terms of DCF and profit when the value of the qui current net value will be similar.

Here are 5 steps need to consider evaluating a brand name:

1. Market segment – Trademarks affect the choice of consumers, but the differences in each market. Market of the brand is divided into several groups of customers relatively synchronism with each other according to the criteria as product or service, distribution channels, patents, regionally-li, existing customers and new customers etc. … Trademarks are pricing each segment and the total value of the segment will constitute the total value of the brand.

2. Financial analysis – Next step 1, in each segment, identify and forecast revenue and income from assets have been invisible because of the brand. Earnings invisible in brand sales less the cost of operation, the related taxes and interest loans. It can be said that this concept is similar to the concept of profit economics.

3. Analysis needs – only the number of “Role of brand building” shows percentage contribution of income have been invisible because of the brand. It is calculated by determining the branch needs of different business under the brand name, then measuring the extent of the impact of the brand. Earnings of brand name with the “Role of building brand name” people with incomes invisible.

4. Standard competition – Analysis of the strengths and weaknesses of the brand in order to determine the interest rate deduction brand (interest rate reflects the risk of earnings expectations in the future have been through brand), is By measuring the “Score brand strength”. To obtain this result, it is considering combining the standard competition and gather results appraisal of the market’s brand, the level of stability, leadership positions, development trend, support, the negative market and so on …

5. Calculate the value of brand – brand value is the current value (NPV) of revenue projections have been thanks to the brand, be deducted by the rate of deduction brand. Results NPV not only drawn at the time of the prediction but also in time further to be able to reflect the ability to generate revenue continuously in the future of the brand.

Tags: Brand Name, Tern brand name

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.