This is the second of six guiding principles of brand strategy:
A brand is an asset that holds reputational and commercial value. Nurturing and protecting a brand is a long-term investment in building brand equity. Like other assets, a brand needs care and protection to hold its value and to appreciate over time.
On P&L and balance sheets, a brand is represented in all the numbers as it embodies the investment and the risk of managing the business. The number most directly linked with a brand is “goodwill” but we’ve yet to crack the code on brand valuations. Good leaders treat brands as assets and are willing to spend to nurture it and protect it.
Investment decisions also factor in the strength of brand equity. Perhaps it is not called that in the boardroom but savvy investors know an undervalued brand. Throw in a talented marketer and latent brand equity comes to life!
So three questions to leaders: do you know how much you’re spending to nurture a brand? And to protect it? Do you know what the $ risk is for not investing in it?
This is part of a series of six core principles of brand strategy guiding my work at www.theunionmarketing.com. It was published in Designing Brand Identity, Alina Wheeler, 2017, Wiley.
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@smunthree | The Union Marketing Group | www.theunionmarketing.com
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