BS ISO 20671-1:2021 pdf free download – Brand evaluation Part 1: Principles and fundamentals.
Evaluating brand performance requires an in-market comparison or simulated market test 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 Figure 1, calls for determining brand performance as a measure of the extent to which brand strength is correlated with or affects brand performance in a market test appropriate to the brand. In other words, brand performance provides an estimate of the extent to which brand strength affects market level customer/stakeholder behaviour. This can also include measures 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 brand’s contribution to cash flow. This provides a final measure of monetary brand value. Thus, a brand performance 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 evaluation document to increase entity value as established by improvements in brand strength and brand performance and ultimately indicators 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 of 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 entities 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.
The three-part framework recognizes that any brand evaluation is complex and multidimensional, and it constitutes information for multiple uses. Moreover, brand evaluations for some purposes may be restricted to brand strength. Improvements to brand strength can be identified through continuous measurement of the relationship between brand input elements and the dimensions that make up brand strength. In this framework, however, brand strength is a first step in evaluating brand performance, the impact of the brand in the market, where other variables such as competition can affect outcomes. Brand performance can in turn be used as part of a method for determining a monetary brand valuation.
3.1
brand
intangible asset, including but not limited to, names, terms, signs, symbols, logos and designs, or a combination of these, intended to identify goods, services or entities, or a combination of these, creating distinctive images and associations in the minds of stakeholders (3.1.2), thereby generating economic benefit/values
3.1.1
entity
individual or group of people structured as a sole-trader, corporation, company, joint venture, not- for profit organization, firm, enterprise, authority, partnership, charity or institution, or part or combination thereof, whether incorporated or not, public or private, that owns and/or has the legal ownership or legally/contractually authorized rights to use and/or promote the brand (3.1) in the category (3.1.3) for some economic or societal benefit
3.1.2
stakeholder(s)
person(s) or discernible group(s) of individuals that can affect, be affected by, or perceive itself (themselves) to he affected by a brand strength (3.2)
3.1.3
category
segment of the market, economy or society where discernible goods or services associated with the brand (3.1) are offered.