ISO 20671 pdf download – Brand evaluation – Principles and fundamentals

ISO 20671 pdf download – Brand evaluation – Principles and fundamentals.
Evaluating brand performance requires an in-market companson or simulated market Lest to estimate the extent to which a selected measure of brand strength translates into a different level of sales or acceptance. The second part of the framework, the middle section of FigurLL calls for determining brand performance as a measure of the extent to which brand strength Is correlated with or affects brand perlormance in a market test appropriate to the brand. In other words, brand performance provides an estimate olthe extent to which brand strength affects market level customer/stakeholder behaviour. This can also include measLires of financial results.
0.7 Brand valuation
Brand valuation reflects the process of assessing the monetary value of a brand. Brand strength and performance can be applied to a Financial cash flow metric such as sales velocity or margin levels in order to attribute a brands contribution to cash flow. This provides a final measure of monetary brand value. Thus, a brand perlormance assessment naturally feeds into a monetary brand valuation.
0.8 ContInuous Improvement
Continuous improvement Is Informed by changes In brand evaluation results between two periods. Presently brands are too often taken as incidental business expenses necessary for the sake of having a name, a logo or a trademark. Brands can be proactively managed and measured at least annually to Increase entity value, Therefore, brands shall be managed using this brand cva1uaton document to increase entity value as established by improvements in brand strength and brand performance and ultimately iiidicators of financial results.
For organizations that seek to increase brand value, brand evaluation thus creates a feedback loop for the continuous improvement of a brand that leads to greater value for the entity over time. By investing (changing the composition and level 01 brand input elements) based on such feedback, brands can be improved to provide greater benefits and better experiences to customers and other stakeholders and higher returns on the brand asset to the entitles which use and own the brand. This document therefore constitutes a basis or departure point for high-level corporate planning and governance, including best practices for brand management.
The principles of this framework also apply to external investors and lenders, By evaluating brand strength, brand performance, and financial results, targets can be defined not only for the internal planning process but also for Investors and lenders who realize the Importance of brands as valuable assets.
4.2 Transparency
Braiid evaluation processes shall be transparent. This requirement Includes disclosure and
quantification of evaluation inputs, outputs, assumptions and risks.
4.3 Consistency
To achieve comparable results In an evaluation, the methodology used for the evaluation shall be consistent, If the methodology shall be changed, changes shall be noted and the ability to compare results explained.
4.4 ObjectivIty
The evaluation shall be performed free of partiality.
5 Brand evaluation fundamentals
5.1 General
The fundamentals ol brand evaluation locus on evaluating brand value using both elements and dimensions, thereby determining brand strength, brand performance, and financial results. Elements determine the Input which the brand operating entitles allocate to the brand, while dimensions measure the external reactions to the brand.
Applicable Indicators shall be determined e.g. according to company size, particular type of brand, purpose of the brand evaluation, different external regulating environment. Each of them may require a different type of analysis, They shall be compared with maior competitors or alternative brands.
Lists of indicators for elements and dimensions for different types of brands are provided in AnnexA.
5.2 Elements
5.2.1 General
Elements refer to internal allocations to activities or resources iniluencing brand value, mainly in perspectives of tangible, quality, service, innovation, and Intangible elements.