ISO10668: 2010 brand management system standard
In 2007, the International Standards Institute set an international standard for brand monetary evaluation. After 3 years, ISO 10668 – Money Brand Evaluation – was released in the fall of 2010. This standard specifies the rules required to determine the monetary value of a brand.
Brands, like other intangible assets, have very valuable features. “Brands need to create a distinct and consistent image in the minds of stakeholders to help a company stay in the marketplace and connect with and engage with customers,” said Christopher Schulz, head of the ISO project working group that developed the standard. “Engage with yourself.”
Companies have long struggled to determine the true impact and value of their brands, and ISO 10668 is an important step forward for the industry.
The guidelines provide users with a coordinated three-dimensional analysis that focuses on financial, legal, and behavioral issues around the world. Ownership and protection of a brand, market size and trends, the impact of the brand on different purchasing choices and the different tendencies of stakeholders towards the brand are examples of the guidance of this standard.
The standard defines a framework that includes the objectives, principles, approaches and methods of evaluation, and data sources and quality assumptions. It also provides methods for reporting results.
Under ISO 10668, the brand evaluator must state the purpose of the evaluation because it affects the value, valuation assumptions and end result, all of which must be transparent to the person viewing the final brand valuation report.
A brand can be the most valuable asset of a company, which is visible and understandable to few people.
Well-known brands are able to grow their business as well as financially grow and succeed in their companies.
But it is very difficult to measure the financial value of a brand as an intangible asset. Today, the brand is a major share of the capital and wealth of the enterprise and its control is part of strategic organizational activities.
Requirements for ISO 10668 certification
ISO 10668 briefly sets out the rules required for valuing each brand. This standard contains a summary of the best practices and deliberately avoids providing detailed and complex work requirements and procedures. Thus, as long as the rules are followed, ISO 10668 is appropriate for all proprietary and non-proprietary brand valuations that have been developed over the years. ISO 10668 states that when valuing a brand, the evaluator should use three types of analysis before commenting on brand value.
These are the three legal, behavioral and financial analyzes. All three types of analysis should lead to a complete result in brand valuation. This applies to existing brands, new brands and developing brands.
Application of brand valuation
ISO 10668 provides a consistent framework for the local, national, and international valuation of large and small brands. The main goal was to provide a transparent, integrative and repeatable approach to brand valuation. At the beginning of the emergence of this standard, many companies are expected to re-evaluate their brand for the first time or redefine its value based on the standard.
Determining brand value and calculating return on investment is very important. Brand value is an important and determining factor in the value of a company’s stock. Brand value is the added value that a product creates by its brand. Brands include names, signs, terms, symbols, logos, etc. that represent products, services and individuals and legal entities. The category of brand valuation in the world until 2010 was done in different ways. The Expert Committee on the Brand Valuation Project was formed at the ISO Institute in 2010. In September 2010, the international standard ISO 10668 (Brand Evaluation) was published. Standard 10668 sets out criteria such as objectives, principles, approaches and methods of valuation, and data sources and quality assumptions. It also provides methods for reporting results.
ISO 10668 can be used for a variety of purposes, such as:
Accounting and financial reporting
Debt settlement and settlement
Judicial support and dispute resolution
Investment and financial participation
Obtaining licenses and economic negotiations
Internal management of reports and information
Strategic planning and brand management.
Estimate brand budget and marketing
Check the brand price
Brand architecture analysis
Plan for brand development
Benefits of brand valuation:
Funding and attracting business partners
Receiving loans and bank facilities
Strategic planning and brand management
Stock valuation and entry into the stock market
Inclusion in financial and accounting reports
Payment of damages and bankruptcy
Use in litigation and litigation