Analysis of why brand valuation has failed to deliver the benefits that marketers had hoped for - the artificiality of its premise; and the inconsistency of the current valuations produced by Interbrand, Brand Finance, Millward Brown and the European Brand Institute.
Comparison of the valuation of brand by the accountants (for the purposes of post purchase goodwill accounting) and by the brand consultants.
Recommendation that marketers are better served by framing brands as having a multiplier/magnifier effect on the impact of business strategy, rather than being viewed as standalone assets whose value is independent from the value of the business.
This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with thirty slides is here to help you to strategize, plan, analyse, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Brand Valuation PowerPoint Presentation Slides with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization. http://bit.ly/2SabkMr
This complete deck is oriented to make sure you do not lag in your presentations. Our creatively crafted slides come with apt research and planning. This exclusive deck with thirty slides is here to help you to strategize, plan, analyse, or segment the topic with clear understanding and apprehension. Utilize ready to use presentation slides on Brand Valuation PowerPoint Presentation Slides with all sorts of editable templates, charts and graphs, overviews, analysis templates. It is usable for marking important decisions and covering critical issues. Display and present all possible kinds of underlying nuances, progress factors for an all inclusive presentation for the teams. This presentation deck can be used by all professionals, managers, individuals, internal external teams involved in any company organization. http://bit.ly/2SabkMr
Explains why the integration of the marketing and finance perspectives on business is essential if companies are going to achieve a sustainable balance between value creation and value capture
NEED OF BRAND VALUATION: A brand can be valued anytime and for many reasons, that includes- Brand strategy, Financial Reporting, Mergers and acquisitions, value reporting, licensing, legal transaction, accounting, strategic planning, management information, taxation planning and compliance, liquidation.
This presentation deals with the different methods of measuring brand equity, focusing on the method adopted by Interbrand, one of the most famous business agencies in the world.
Highlights the two views of the customer that predominate in business - the Vulcan view that customers are Rational Economic Maximizers (typically held by Finance and Operations executives) and the Earthling view that customers are Utility Maximizers (typically held by HR and Marketing executives). The presentation discusses how brands enable a company to appeal to the product functionality requirements of the Vulcan customer as well as the a broader set of requirements from the Earthling customer.
The presentation illustrates how the head and the heart are not at odds (Earthlings care about both dimensions) and that the role of Marketing is understand and deliver on all dimensions of customer need.
Reviews the major alternatives open to business executives during mergers, and the associated post-merger returns for companies adopting each of the three main alternatives.
The research suggests that the choice of corporate brand strategy is value relevant, and may play an important role in facilitating a smooth process of post-merger integration.
Current and popular methods to value a corporate brand, although traditionally deemed as being adequate or “passable” for financial reporting purposes (hint: relief-from-royalty method to value trademarks), are far less than sufficient when it comes to measuring the full value of this intangible asset.
The Residual Contribution Method for valuing corporate brands is designed to minimize the high level of irrelevance, subjectivity, as well as lack of practicality that are inherent in the existing population of models, by systematically exploring the relation between a business enterprise, its underlying key intangible assets, goodwill, and ultimately, corporate brand value.
The valuation of a corporate brand, which can be viewed in many cases as one of the most valuable assets held by a corporation, is a function of thoroughly identifying, isolating, and quantifying the economic value of that complex array of intangible asset forces that make up a business enterprise.
Comparison of the results of the 2013 brand value league tables published by Interbrand, Brand Finance, Millward Brown and the European Brand Institute.
The presentation provides a summary of the methodologies used, and the valuations of the top 30 brands from each league table.
It compares the values attributed to the 28 brands that appear on all 4 lists, and the assessment of whether they are increasing or decreasing in value.
Comparison of the 2016 data on brand value published by Brand Finance, Interbrand and Millward Brown. Also includes analysis of brand value as a percentage of market cap by industry sector
Explains why the integration of the marketing and finance perspectives on business is essential if companies are going to achieve a sustainable balance between value creation and value capture
NEED OF BRAND VALUATION: A brand can be valued anytime and for many reasons, that includes- Brand strategy, Financial Reporting, Mergers and acquisitions, value reporting, licensing, legal transaction, accounting, strategic planning, management information, taxation planning and compliance, liquidation.
This presentation deals with the different methods of measuring brand equity, focusing on the method adopted by Interbrand, one of the most famous business agencies in the world.
Highlights the two views of the customer that predominate in business - the Vulcan view that customers are Rational Economic Maximizers (typically held by Finance and Operations executives) and the Earthling view that customers are Utility Maximizers (typically held by HR and Marketing executives). The presentation discusses how brands enable a company to appeal to the product functionality requirements of the Vulcan customer as well as the a broader set of requirements from the Earthling customer.
The presentation illustrates how the head and the heart are not at odds (Earthlings care about both dimensions) and that the role of Marketing is understand and deliver on all dimensions of customer need.
Reviews the major alternatives open to business executives during mergers, and the associated post-merger returns for companies adopting each of the three main alternatives.
The research suggests that the choice of corporate brand strategy is value relevant, and may play an important role in facilitating a smooth process of post-merger integration.
Current and popular methods to value a corporate brand, although traditionally deemed as being adequate or “passable” for financial reporting purposes (hint: relief-from-royalty method to value trademarks), are far less than sufficient when it comes to measuring the full value of this intangible asset.
The Residual Contribution Method for valuing corporate brands is designed to minimize the high level of irrelevance, subjectivity, as well as lack of practicality that are inherent in the existing population of models, by systematically exploring the relation between a business enterprise, its underlying key intangible assets, goodwill, and ultimately, corporate brand value.
The valuation of a corporate brand, which can be viewed in many cases as one of the most valuable assets held by a corporation, is a function of thoroughly identifying, isolating, and quantifying the economic value of that complex array of intangible asset forces that make up a business enterprise.
Comparison of the results of the 2013 brand value league tables published by Interbrand, Brand Finance, Millward Brown and the European Brand Institute.
The presentation provides a summary of the methodologies used, and the valuations of the top 30 brands from each league table.
It compares the values attributed to the 28 brands that appear on all 4 lists, and the assessment of whether they are increasing or decreasing in value.
Comparison of the 2016 data on brand value published by Brand Finance, Interbrand and Millward Brown. Also includes analysis of brand value as a percentage of market cap by industry sector
Cures for 8 common merger and brand integration ailmentsBader Rutter
Integration planning is the single most important strategy for mitigating risk in merger and acquisition transactions. Never overlook the human and cultural nuances. Look beyond the financials. And find cures to eight common post-merger brand transaction ailments in this presentation.
Psyche of Facilitation - The New Language of Facilitating ConversationsThinkInnovation
Not every participant in an interaction will respond in the same way to the facilitator.
Some language of facilitation may attract the participants to the conversation. Others may cause them to stay away.
So, by combining the sciences presented and described in this slideshare, I have created a framework that provides a guide on how the language could be better fine-tuned to enrich the collective learning and wisdom of the group.
This presentation has my preliminary thoughts on the subject of brand valuations, which is an important part of brand-building nowadays.
Here, I focus on what brand valuation should be based on, what should be its components and what metrics should form part of it. I talk about the four critical dimensions of a brand and their components, as well as how they relate to each other.
Brand valuations can be for corporate brands as well as product brands. They can also be specific to an industry as well as cross-industry. It is important to focus on the right dimensions and their metrics for each type of brand valuation exercise.
Total Customer Experience Management Overview #TCE #CEM -- The Why, What and...Stephen King
This is a presentation we put together for our TCELab Sales Affiliates and Partners -- explains an overview of Total Customer Experience Management, Why your customer's CEO's will love it, your opportunity, and how TCELab's products and services fit into the CEM / Big Data / Customer Loyalty Space
Lacking a set standard, the finance function tends to avoid assigning value to its brands, and companies tend to focus instead on qualitative assessments, such as brand awareness, customer engagement and perception of quality. While these metrics can inform growth expectations, they do not assess the true value that the company might have created by growing its brands. This article, sponsored by Oracle, explores the brand valuation conundrum.
Lacking a set standard, the finance function tends to avoid assigning value to its brands, and companies tend to focus instead on qualitative assessments, such as brand awareness, customer engagement and perception of quality. While these metrics can inform growth expectations, they do not assess the true value that the company might have created by growing its brands.
Etude PwC sur le reporting intégré (sept. 2014)PwC France
http://bit.ly/Reporting-PwC
Selon une étude du cabinet d’audit et de conseil PwC, 80 % des investisseurs s’accordent à dire qu’un reporting de qualité influence leur perception de l’entreprise. Pour près de deux tiers d’entre eux (63 %), la qualité du reporting d’une entreprise pourrait avoir un impact financier direct sur le coût de son capital.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
LA HUG - Video Testimonials with Chynna Morgan - June 2024
Brand Valuation - The Marketer's Perspective
1. Brand Valuation:
The Marketer’s Perspective
Recommendations for Marketing Professionals
Type 2 Consulting
New York
October 2013
Does Marketing Matter? January 2009
P1
2. Marketers’ Motives for Valuing Brands are Laudable…
BENEFITS THAT MARKETERS EXPECT FROM BRAND VALUATION
• Dialogue with senior management in language they recognize
(cash flow and business value)
• Recognition that brands represent true economic assets
(that is, they generate future cash flow)
• Acknowledgement by senior management that ROMI
(Return on Marketing Investment) needs to be measured in
terms of short-term ROI and changes in brand equity
• Appreciation of the contribution of the marketing function
to overall business value
P2
3. So, Why has Brand Valuation Failed to Deliver?
TWO REASONS WHY MARKETERS HAVE BEEN DISAPPOINTED
• Brand Valuation is based on an artificial premise:
– Brand valuation is based on the concept of a brand as a standalone
piece of intellectual property (“trademark and associated goodwill”)
whose financial impact can be isolated from all the other factors that
contribute to customer preference and purchase behavior
– This creates a “zero sum” dynamic between marketing and other
departments (such as sales, NPD, customer service) about who is
really responsible for the incremental brand-related earnings
• Brand Valuation produces inconsistent results:
– Comparison of the results of the brand valuations published by
Interbrand, Brand Finance, Millward Brown and the European Brand
Institute reveal a disturbingly high level of inconsistency
– This inconsistency undermines the credibility of brand valuation in the
eyes of business executives
P3
4. The 2013 Brand Value League Tables Compared
The four top 100 lists feature
Only
213 different brands
28 brands are common to all four top 100 lists
There is an average difference of 2.3x
between the high/low values of these 28 brands
15
For
of these 28 brands
there is disagreement about whether the brand
increased or decreased in value relative to 2012
P4
5. The Top 30 Brands in the Four 2013 Lists
Eurobrand data originally published in Euros and converted at €1 = $1.32
P5
6. Valuation of the 28 Brands Common to the 2013 Lists
Eurobrand data originally published in Euros and converted at €1 = $1.32
P6
7. Three Key Points for Marketers to Note
• All four consultancies base their valuations on credible
“economic use” methodologies:
• The differences in the resulting valuations are primarily due to
differences in the key assumptions in their respective models,
not methodological differences between the models
• This subjectivity in assumptions is the consequence of the
lack of a GAAP-style standard for measuring the strength of
brands and their role in driving revenue and margin:
• This results in significant differences between the models in the
proportion of profitability solely attributable to the brand (models
that use the “earnings split” approach) or the royalty rate (models
that use the “relief from royalty” approach)
• But, most importantly, the concept of a brand as a standalone
asset is not a view that marketers should be promoting
P7
8. The Artificial Premise of Brand Valuation
• Marketers expend considerable energy convincing senior
management that brand is holistic concept that encapsulates
the entire customer experience, and that “brand thinking” be
incorporated into all aspects of how the company operates
• It therefore seems inconsistent – and narrowly self-serving –
that, when it comes to brand valuation, marketers are ready
to claim exclusive responsibility for a significant proportion of
the cash flows of the business
• Brand Valuation comes across as a “land grab” by marketers
to attribute an artificially large proportion of cash flow and
business value to their activities
P8
9. Contrasting Opinions of the Value of Brands
• Comparison of the valuation of brands in post-merger
accounting (PPA – post-purchase goodwill allocation) with
the league table data reveal a huge difference of opinion:
• PPA analysis reveals that accountants attribute an average of only 7%
of the overall purchase price to brands/trademarks (T2 analysis of
goodwill allocation in the 300 largest M&A transactions 2002 to 2012)
• Analysis of the league tables shows that the brand consultants
consider that brands represent 18% of overall enterprise value (T2
analysis based on the consolidated results of the 2009 to 2012 league tables)
Industry Sectors
Consumer Discretionary
Consumer Staples
Energy
Healthcare
Industrials
IT
Materials
Telecom
Total
1
2
Brand Value
as % EV 1
22%
23%
5%
10%
12%
29%
9%
18%
18%
Trademarks
as % EV 2
5%
12%
3%
10%
8%
3%
1%
3%
7%
Brand Value data available for years 2009 to 2012
PPA data available for years 2002 to 2012; EV assumed = Net Transaction Value
P9
10. Is “Brand” or “Branded-ness” the Real Objective?
• If marketers believe that customer value is the ultimate
source of business value:
– Peter Drucker said “marketing and innovation produce results”
because these are the only two business disciplines that are
focused on providing customers with what they value
• Then the goal of Marketing is to ensure that a company
delivers distinctively valuable experiences to customers:
– Marketing is therefore about the entirety of the customer
experience, not solely the actions of the marketing department
• And the real business question is about the value of
“branded-ness” (the customer experience), not “brand”:
– How much incremental value can a company generate by focusing
on the delivery of a distinctive experience across all aspects of the
customer’s interaction with the company and its products?
P10
11. “Brand-ness” vs. “Brand”
• “Branded-ness” is the true economic asset of the business:
– The distinctive identity that the company or product enjoys in the
minds of customers and other audiences is the true source of the
incremental cash flow that the company is able to generate
• “Branded-ness” is more intuitive to senior management:
– Senior executives are ready to acknowledge the business value of
“corporate reputation” and “market perception”
• “Branded-ness” avoids the artificiality at the heart of the
current approach to brand valuation process:
– The sleight of hand at the heart of brand valuation currently is the
attribution of the financial impact of “branded-ness” to the
intellectual property (the trademark and associated goodwill)
because that is the “asset” that the accountants will recognize
P11
12. Towards a Better Model of “Brand Valuation”
• If customers’ perception of the company (“branded-ness”)
is the real economic asset of the business, then the value of
branding is better thought of in terms of a multiplier effect
• The value-added of marketing investment can be measured
in terms of how it magnifies the effectiveness of the
underlying business strategy, rather than a standalone asset:
– Branding is as an integral part of a deliberate go-to-market strategy
for identifying the most suitable audiences (segmentation) and
delivering distinctive levels of value to them (value proposition)
• This means that marketers should focus on demonstrating
how brands impact the key value drivers of the business:
– What is the differential impact of “branded-ness” on the growth,
price realization, cost structure and risk profile of the business?
P12
13. Brand Strength as a Multiplier of Business Value
KEY FINDINGS
• As expected, corporate valuation is driven
primarily by changes in profitability (the
valuation multiples are most sensitive to
movement along the X-axis)
• Brand strength shown to be a magnifier of
underlying business performance, improving
market value multiples by 20% for low-EVA
companies to 50% for high-EVA companies
High
1.2
Low
Low
2.9
1.0
Brand Strength
The table opposite summarizes the findings of
research into the relative impact of profitability
and brand strength on business valuation
The research involved 140 companies over a 10
year period and drew on corporate
performance data from Stern Stewart’s EVA
database and brand strength data from Young &
Rubicam’s BrandAsset Valuator database
1.9
Profitability (EVA)
High
Reference:
J Knowles
“Value-based brand measurement and management”
Interactive Marketing, July/September 2003
Note:
EVA = Economic Value Added (profitability after making a charge for the use of the capital invested in the business)
P13
14. Summary of Key Points
• Marketers often have unrealistic expectations of what brand
valuation can deliver
• Brand valuation is based on an artificial construct that
credits the trademark (the legal asset that the accountants
are prepared to recognize) with the full financial value of
“branded-ness” (the customer’s perception of the company)
• The real economic asset is the customer’s perception, and
this is based on the totality of the actions of the business,
not just those of the marketing department
• A more convincing approach to “brand valuation” is to think
of brands as magnifying the effectiveness of business strategy
• ROMI (Return on Marketing Investment) can be expressed
in terms of its differential impact on the growth, price
realization, cost structure and risk profile of the business
P14
15. 226 Fifth Avenue
6th Floor
New York
NY 10001
C: 646 345 6782
T: 212 537 9200
F: 212 658 9869
j.knowles@type2consulting.com
P15