How much is a brand worth and why do you need to know it?
Posted: Sat Jan 18, 2025 8:56 am
How much is a brand worth? It all depends on the company in question. The higher the image, recognition, and popularity of its product, the more expensive its brand.
Why count? Brand value consists of many components and depends on many factors. This is necessary if you decide to sell the company, find investments, determine marketing influences. Various methods and ways of calculating brand value have been developed. But the principle is the same: an expensive brand = a very famous enterprise.
The article explains:
What is brand value
When you need to know the value of a brand
Brand, Trademark band data package and Trademark
Who calculates brand values?
Brand Value Models
Methods of calculating brand value
What influences brand value
Benefits of High Brand Value
The Most Valuable Brands of 2023
Frequently Asked Questions about Brand Value
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
What is brand value
Brand value is the reward, the actual or potential income, that a business owner receives from loyal consumers willing to pay for the brand. Brand value is a monetary value that can effectively contribute to the value of the company.
Since the concept under consideration has an intangible meaning, marketers, lawyers and economists have different opinions about its definition and value.
From a legal point of view, only a trademark, which is part of intellectual property, can be sold or protected by a court. Lawyers do not use the term "brand", therefore, it is impossible to get money for it. There is no legal definition of this term in Russian legislation.
What is brand value
Source: shutterstock.com
The most preferable type of brand registration in practice is to register it as a trademark. However, not every one of them can become a brand; it is necessary to first earn fame and reputation in the market. A well-known trademark will definitely be related to the brand.
In marketing, its value reflects the success of investments in the company's image and business reputation. In simple terms, it is an indicator of the effectiveness of advertising promotion. When the brand value increases, it means that marketing specialists are working correctly.
On the other hand, economists consider a brand to be an intangible property of a company that generates income. It is this view and approach of specialists that makes it possible to calculate the value of a brand (as a share of the total income of a business).
Intangible assets are becoming increasingly important in the competition between companies for a place in the market. It is impossible to be at the forefront without attracting competent personnel to the organization, without creating an effective production structure and sales network, without introducing innovations. Among intangible assets, a special place is occupied by the brand of the product and the company.
If all funds are aimed at fruitful, coordinated work, the company and its products will be famous for a good reputation, which, in turn, will stimulate further development, and the presence of brands will accelerate this. From this point of view, the creation of a trademark contributes to the rapid transfer of information about an organization that has already formed a reputation and has plans for the future. A company's brand is its asset, another resource for obtaining additional benefits.
Why count? Brand value consists of many components and depends on many factors. This is necessary if you decide to sell the company, find investments, determine marketing influences. Various methods and ways of calculating brand value have been developed. But the principle is the same: an expensive brand = a very famous enterprise.
The article explains:
What is brand value
When you need to know the value of a brand
Brand, Trademark band data package and Trademark
Who calculates brand values?
Brand Value Models
Methods of calculating brand value
What influences brand value
Benefits of High Brand Value
The Most Valuable Brands of 2023
Frequently Asked Questions about Brand Value
5 Scenarios for Using Neural Networks to Increase Website Conversion by 40%
Download for free
What is brand value
Brand value is the reward, the actual or potential income, that a business owner receives from loyal consumers willing to pay for the brand. Brand value is a monetary value that can effectively contribute to the value of the company.
Since the concept under consideration has an intangible meaning, marketers, lawyers and economists have different opinions about its definition and value.
From a legal point of view, only a trademark, which is part of intellectual property, can be sold or protected by a court. Lawyers do not use the term "brand", therefore, it is impossible to get money for it. There is no legal definition of this term in Russian legislation.
What is brand value
Source: shutterstock.com
The most preferable type of brand registration in practice is to register it as a trademark. However, not every one of them can become a brand; it is necessary to first earn fame and reputation in the market. A well-known trademark will definitely be related to the brand.
In marketing, its value reflects the success of investments in the company's image and business reputation. In simple terms, it is an indicator of the effectiveness of advertising promotion. When the brand value increases, it means that marketing specialists are working correctly.
On the other hand, economists consider a brand to be an intangible property of a company that generates income. It is this view and approach of specialists that makes it possible to calculate the value of a brand (as a share of the total income of a business).
Intangible assets are becoming increasingly important in the competition between companies for a place in the market. It is impossible to be at the forefront without attracting competent personnel to the organization, without creating an effective production structure and sales network, without introducing innovations. Among intangible assets, a special place is occupied by the brand of the product and the company.
If all funds are aimed at fruitful, coordinated work, the company and its products will be famous for a good reputation, which, in turn, will stimulate further development, and the presence of brands will accelerate this. From this point of view, the creation of a trademark contributes to the rapid transfer of information about an organization that has already formed a reputation and has plans for the future. A company's brand is its asset, another resource for obtaining additional benefits.