No-one wants to pay ‘just for the name’ yet branding power means we often do. One of those intangible but valuable things, branding influences the decisions of customers, financial institutions, potential buyers of the business and more. And some brands are worth a lot.
Yet not all measures are monetary and there are many different approaches and methods used around the world, which makes true comparisons and benchmarking somewhat tricky.
ISO 20671, Brand evaluation – Principles and fundamentals, aims to standardize the technical requirements and evaluation methods involved in brand valuation. It complements ISO 10668, Brand valuation – Requirements for monetary brand valuation, which focuses primarily on the financial aspects.
ISO 20671 was inspired by the Austrian standard, ONR 16800 Method for the evaluation of the intangible asset brand, published in 2006. It was the first ever standard on brand evaluation, and was developed by Austrian Standards, ISO’s member for Austria.
Dr. Gerhard Hrebicek, who was chair of the committee that developed ONR 16800 and played a role in the development of ISO 20671 said the standard starts a new era for brands.
“ISO 20671 is aimed at businesses of all kinds wishing to increase their brand value and provides a starting point for high-level planning and governance, including best practices for brand management and brand reporting. It provides a more holistic view, covering non-financial as well as financial measures, and forms the basis for other, more specific standards to be developed.”
Dr. Bobby Calder, chair of the ISO technical committee that developed ISO 20671 added: “ISO 20671 covers all the factors that influence the success of a brand, such as innovation, tangible resources, service and quality, as well as brand strength and performance. All of which can have an impact on the monetary value, and thus, by measuring them, businesses can more easily identify areas for improvement or investment.”
Learn more about ISO 20671 from ISO/TC 289 chair, Gerhard Hrebicek in this informative video.