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Brand value vs brand value

The term brand value can often confuse. Brand value in some contexts can mean the financial value of a brand – its actual value. In other circumstances brand value means one of the intangible measures that contribute to the brand’s financial value. Such brand value attributes can include brand awareness, familiarity, relevance, heritage or understanding. These brand values all contribute towards the financial value of the brand. 

An important part of valuing brands is identifying what these values are that drive the brand’s financial value. You could collate an exhaustive list of values but the shorter the list of brand values the easier it is to monitor and manage. The second step when using these brand values to value brands is to calculate how important each one is for the particular brand. For instance, whilst awareness is clearly an important brand value measure, without consumer understanding of what your brand stands for it is wasted. Market research is carried out within defined market segments to determine what brand values are most important to the brand’s customers. 

Scoring these brand values helps determine what royalty rate to use when calculating brand value, as part of the relief-from-royalty brand valuation methodology. 

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