ISO 10668 brand valuation

International Organization for Standardization · 2010

A required set of analyses — legal, behavioural and financial — before any monetary brand value is claimed.

Its place in the frameworkBrand Core›Brand Value

What it does

It does not prescribe one calculation. It requires that whichever is used rests on all three: what is actually owned and protected, how the brand changes behaviour, and what that behaviour is worth. Its usefulness is as a standard to hold a valuation against, since brand valuations vary by multiples depending on who commissioned them.

Reach for it when: When a number is needed for a transaction, a licence or a balance sheet, and when someone else’s valuation needs testing.
Where it stops: Being methodologically sound does not make the assumptions right. Two compliant valuations of the same brand can still differ enormously.

ISO 10668, Brand valuation — Requirements for monetary brand valuation, International Organization for Standardization, 2010.

Why it sits at Brand Value

What the brand is actually worth: whether people know it, what they associate with it, whether they come back, and what that is worth in money.

A model is only useful when you reach for it at the right moment. This one answers a question that arises here — so it is filed here, and nowhere else. These are the working areas it serves:

AwarenessAaker’s brand equity model (1991), and the mental-availability work on category entry points that sharpened what awareness has to mean.
AssociationsKeller’s customer-based brand equity: associations judged on strength, favourability and uniqueness.
LoyaltyDick and Basu’s two-dimensional loyalty model, distinguishing repeat behaviour from relative attitude.
ValuationISO 10668 on brand valuation, which requires the method, inputs and assumptions to be disclosed alongside the number.

All of Brand Value

What it touches elsewhere

Nothing in a business is decided on its own. A conclusion reached with this model at Brand Value lands in these other cores, whether or not anyone follows it there.

Business CoreThe brand is an intangible asset and belongs on the schedule with a replacement cost.
Data CoreAwareness and association tracking is a measurement programme and needs designing as one.
Market CoreBrand measures are only interpretable against the same measures for competitors.
Time CoreBrand value moves over years, which makes the measurement rhythm a deliberate choice.

Filed at the same place

These answer questions that arise at Brand Value too. Where they disagree with this one, the disagreement is the useful part.

Brand equityThe value a name adds, held in awareness, associations, perceived quality and loyalty.

Elsewhere in Brand Core

These are other people’s models, named here so you can go to the source and use them properly. The Omnigoal is not affiliated with their authors and is not endorsed by them; nothing of theirs is reproduced here — no canvas, no diagram, no wording. Each is described in our own words, with the originator credited, because the framework is a place to put thinking, not a replacement for the people who did it. Model names and trademarks belong to their respective owners and are used here only to refer to the work itself.

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