Glossary of Branding Terms
What is brand value?
Brand value is the financial value of a brand, based on a number of factors.
How is brand value calculated?
Various methods have been established for calculating brand value, however, some of them lead to widely divergent results. The factors used in the calculation include, for example, current sales, expected growth, market position, but also the contribution of expected sales in the future that can be attributed exclusively to the brand.
Why is brand value important?
Brand value is an intangible asset. It shows that the brand has great significance. Brand value comes into play when a company is sold, and the brand is explicitly included in the sale, and is then also accounted for. Brand value is also a relevant foundation for calculating license fees.
How is brand value created?
A substantial brand value is the result of decades of careful brand management – and goes hand in hand with the economic success of a company. Valuable brands are highly relevant to their customers and differentiate themselves from the competition. Valuable brands also enjoy a high level of awareness and the trust of customers and other stakeholders.
How can brand value be increased?
Strong brand management can measurably influence brand value. This way, the brand makes a relevant and substantial contribution to the company’s value creation.
