ISO, BSI Developing Monetary Brand Value Measurement - ISO/DIS 10668
August 5, 2009 // Published as a news service by IHS
The International Organization for Standardization (ISO), with input from the U.K.'s British Standards Institution (BSI), is developing ISO/DIS 10668, a standard that addresses how organizations approach brand valuation.
ISO/DIS 10668 will specify the requirements for procedures and methods of monetary brand value measurement. Aimed at both brand consultants and finance and marketing professionals, publication of the final standard is expected in summer 2010.
The general requirements of the standard include transparency of the process, which will be designed to allow organizations to better understand the methods used in valuing their assets and increase confidence in the services offered by brand consultants, according to BSI.
The draft standard specifies the requirements for three approaches to brand valuation:
- The Income Approach, which measures the value of the brand by reference to the present value of its economic benefits.
- The Market Approach, which measures the value of the brand based on what other purchasers in the market paid for similar assets.
- The Cost Approach, which measures the value of the brand based on the cost invested in it.
Valuation inputs include assessments of market data, brand strength (based on factors such as awareness and loyalty) and brand relevance in its specific market and legal aspects such as rights, according to BSI.
More information about draft ISO/DIS 10668 is available from BSI.
Source: British Standards Institution (BSI) Group.