Brand Value (Definition)
What Is Brand Value?
A monetary brand value shows how much a brand is worth in euros and cents and what contribution it makes to the overall enterprise value. A strong brand attracts customers, retains them over the long term, and thereby creates a competitive advantage.
Why Is Brand Value Relevant?
The value of a company does not consist only of machines, real estate or inventory. A large share lies in intangible assets – such as the brand, customer relationships, employee know-how, or innovative strength.
These values often do not appear on the balance sheet, yet they are crucial for business success. A look at publicly listed companies shows:
The market often values them at nearly twice their book value. The reason?
A large portion of their value remains invisible.
Brand value creates transparency here. It makes visible how much the brand truly contributes to business success, expressed in euros and cents. This creates clarity and allows the brand to be used as an economic asset. For example for financing, accounting or sale.
How Does Brand Value Arise?
This is how it can be deliberately increased!
Brand value is created and increases whenever people choose a brand in everyday life, whether spontaneously at the supermarket or strategically in a business context. It follows a clear pattern, the logical brand value chain:
1. Create awareness
The brand must be visible and noticed. This is ensured by the marketing mix through measures in communication, product, and sales.
The goal is to make the brand known while simultaneously anchoring a specific image within the target group.
2. Build emotional connection
If the brand is perceived positively, an emotional bond develops over time through sympathy, trust, identification and loyalty.
3. Influence behaviour
Thanks to this emotional connection, the brand is considered during the purchase decision process, becomes part of the relevant set, or even becomes the first choice.
4. Generate value creation
Positive experiences with the brand lead to purchase, repurchase, recommendation and often a higher willingness to pay.
Contact
If you would like to have the brand value of your brand determined, find out here how we go about it.
Would you like a no-obligation consultation on this topic? Our experts are happy to assist you – you can book your preferred appointment here.
