Brand Evaluation

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There are different techniques of Brand Evaluation

Historical Cost Method:

• Sum of  costs to bring the brand to its current level. D
• Drawback is difficult in identifying the costs involved in separating them from the marketing expenditure.

Replacement Cost Method:

• Values at an estimated cost of creating a similar brand from scratch.
• Drawback -Assumptions are anyone’s guess.

Market Value Method:

• what people are willing to pay for the brand today if it is sold.
• Drawback- Illiquid market, brands are not bought or sold frequently. and there is no one or right way to extrapolate or interpolate value.

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