Category Archives: ISO 10668:2010 Brand valuation

ISO 10668:2010 specifies requirements for procedures and methods of monetary brand value measurement.

ISO 10668:2010 specifies a framework for brand valuation, including objectives, bases of valuation, approaches to valuation, methods of valuation and sourcing of quality data and assumptions. It also specifies methods for reporting the results of such valuation.

ISO 10668 is a specification by the International Organization for Standardization (ISO) for the procedures and methods of measuring the value of a brand.

In 2007 ISO set up a task force to draft an International Standard on monetary brand valuation. After 3 years the ISO 10668[1] – Monetary Brand Valuation – was released in Autumn 2010. This sets out the principles which should be adopted when valuing any brand.

ISO 10668 applies to brand valuations commissioned for all purposes, including:

  • Accounting and financial reporting
  • Insolvency and liquidation
  • Tax planning and compliance
  • Litigation support and dispute resolution
  • Corporate finance and fundraising
  • Licensing and joint venture negotiation
  • Internal management information and reporting
  • Strategic planning and brand management

The last of these applications include:

  • Brand and marketing budget determination
  • Brand portfolio review
  • Brand architecture analysis
  • Brand extension planning

Under ISO 10668 the brand valuer must declare the purpose of the valuation as this affects the premise or basis of value, the valuation assumptions used and the ultimate valuation opinion, all of which need to be transparent to a user of the final brand valuation report.

ISO 10668:2010 Brand valuation 5

Courtesy: ISO 10668:2010 Brand valuation Brand equity is the measurable totality of a brand’s worth and is validated by observing the effectiveness of these branding components.  As markets become increasingly dynamic and fluctuating, brand equity is built by the deployment of marketing techniques to increase customer satisfaction and customer loyalty, with side effects like reduced price sensitivity. A brand is, […]

ISO 10668:2010 Brand valuation 4

Courtesy: ISO 10668:2010 Brand valuation Brand Finance League Tables Brandirectory Brandirectory is an online encyclopaedia of brands where financial results, visual identities, trademark histories and the latest marketing news is to be compiled and shared. The Brand Finance Institute The Brand Finance Institute is the education and training division of Brand Finance plc in which […]

ISO 10668:2010 Brand valuation 3

Courtesy: ISO 10668:2010 Brand valuation This is a list of published International Organization for Standardization (ISO) standards and other deliverables. For a complete and up-to-date list of all the ISO standards, see the ISO catalogue. The standards are protected by copyright and most of them must be purchased. However, about 300 of the standards produced by ISO and IEC’s Joint Technical Committee 1 […]

ISO 10668: 2010 Brand valuation 2

Courtesy: ISO 10668: 2010 Brand valuation The income approach This approach measures the value by reference to the present value of the economic benefits received over the rest of the useful life of the brand. There are at least six recognized methods of the income approach, with some authorities listing more. Price premium method – estimates the […]

ISO 10668:2010 Brand valuation

Courtesy: ISO 10668:2010 Brand valuation Brand valuation is the process of estimating the total financial value of a brand. A conflict of interest exists if those who value a brand were also involved in its creation. The ISO 10668 standard specifies six key requirements for the process of valuing brands, which are transparency, validity, reliability, sufficiency, objectivity; and financial, behavioral, and legal parameters. Brand […]