The value of brand valuation
The accuracy of measuring any intangible asset seems suspect to me—especially the total financial value of a brand. While I appreciate the intellectual processes of the various methodologies in the marketplace today, my suspicions are only enforced by my personal experience valuing a Fortune 100 brand while working at a global agency several years ago.
Placing a hard value on a brand relies on real financial data combined with someone’s subjective ranking of that brands “strength” in various scenarios. Truth be told, brand valuation is a happy marriage of fact and fiction with an innate conflict of interest built into the process. If the person ranking your brand’s strength wants to pitch you, the findings can be easily adjusted.
When it comes to brand valuations, too much emphasis is placed on the final financial values and rankings, figures of questionable accuracy at best. The true value comes from learning what is unique about your brand and what is important to your customers. Once you understand that intersection, you can focus on the far more valuable task of strengthening what differentiates your brand in the marketplace.