10. Current cost valuation
All assets are taken at current value and summed to
arrive at value
This includes tangible assets, intangible assets,
investments, stock, receivables
VALUE = ASSETS - LIABILITIES
11. Cost of replacing existing business is taken as the
value of the business
12. Value if company is not a going concern
Based on net assets or piecemeal value of net assets
14. This method is also known as the Profit earnings
capacity value (PECV)
Company’s value is determined by capitalizing its
earnings at a rate considered suitable
15. Cash flow to equity
Discount rate reflects cost of equity
Cash flow to firm
Discount rate reflects weighted average cost of
capital
16. Companies in difficulty
Negative earnings
May expect to lose money for some time in future
Possibility of bankruptcy
17. Also known as relative method
Assumption is that other firms in industry are
comparable to firm being valued
Standard parameters used like earnings, profit,
book value
Adjustments made for variances from standard
firms, these can be negative or positive
18. An example of a hypothetical valuation of a brand in one market segment
SAMPLE BRAND
VALUATION
CALCULATION
19. Simple and easy to use
Useful when data of comparable firms and
assets are available
20. Easy to misuse
Selection of comparable can be subjective
Errors in comparable firms get factored into
valuation model
27. Brand Strategy is separate from the
4P’s. It guides and inform
decisions about every aspect of
the marketing mix.
I. Corporate Objectives & Brand Portfolio
II. Marketing Objectives
III. Brand Strategy
Communications Strategy
Product and Pricing Strategy
Channel and Distribution Strategy
IV. Marketing Execution & Monitoring
Strategic Marketing Process
Brand Strategy is an integral part of the overall strategic marketing
process. It helps to bridge the gap between business strategy and
marketing strategy.
28. Resonance
Consumer
Judgments
Consumer
Feelings
Brand ImageryBrand Performance
Salience
The purpose of the brand equity pyramid is to outline the basic building blocks of a what the brand
should stand for in order to guide the process of building brand equity. It is the basis for determining
key elements of the brand strategy – brand vision, brand positioning, and brand personality and brand
measurement.
Identity
Relationship
Response
Meaning
29. The purpose of brand personality is to ensure a brand
behaves in a way that is consistent with its values in order
to increase its appeal and create greater affinity with its
target. Brand personality can also help to differentiate a
brand’s imagery relative to competitors.
31. The contribution of brand to its owners will keep on increasing.
Brand is just one of several factors that provide stable competitive advantage.
Although many brand measures are available, few can link the brand to long- term
financial value creation. Brand investments and their results are not followed in
detail nearly as much as investments in other assets.
As the importance of intangibles to companies increases, managers will inevitably
need to install more value-based brand management systems that can align the
management of the brand asset with that of other corporate assets and provide
more reliable indicators on contribution of brand to the overall business
performance.
For that purpose, it is necessary to amend accounting standards.
As the need for brand valuation is constantly increasing from both the
management and the market, the first and most important step is the development
of a unique economic use approach to brand valuation.
Such a system may well become the most important management tool in the
future.
A structured conversation with the aim of auditing the brand?
emotion v fact
reputation and values
Are we where we need to be today
Where’s the future of the brand?
where do we want to go
What’s the gap
What mechanisms, actions, processes are available to drive the brand in the right direction and build appropriate and valuable equity?
A structured conversation with the aim of auditing the brand?
emotion v fact
reputation and values
Are we where we need to be today
Where’s the future of the brand?
where do we want to go
What’s the gap
What mechanisms, actions, processes are available to drive the brand in the right direction and build appropriate and valuable equity?