The usage of brand valuation can be categorized as:

• in accounting or

• marketing purpose

If we examine brand valuation in terms of accounting, we have to relate it back to the following areas like balance sheet reporting; tax Planning; licensing & Franchising; mergers & acquisition; litigation Support; investor Relations and securitized borrowing

The next use is in the marketing area:

Many companies are now using power of branding ( the higher the valued placed, the better the positioning would be ) in the critical marketing area. It is increasingly seen as an effective tool in aiding marketing management which might includes:

Resource allocation:
Once a brand is valued in either an individual market or consumer segment, management can next decide on the appropriate allocation of resources based on the value they generate.

Portfolio reviews:
The magic of creating a brand valuation model should not be underestimated as accountants professed to create shareholder value.

It is highly believe that by the creation of a brand valuation model, it enables a company to develop / rationalise an existing portfolio to maximize shareholder value.

Budget determination:
Brand valuation and competitor benchmarking can help companies develop above-the-line budgets for marketing activities.

Performance tracking:
The adoption of brand valuation as an ongoing tracking tool allows varying brand strategies and marketing investment as well as the performance of different marketing teams across an organization to be monitored.

Internal communications:
The financial measure of brand value plays a role in explaining performance within a company and as a motivating factor to management.

New product development:
By using a financial model using predictive research the brand’s impact on volume and price can be used to identify if new product development through brand extensions or stretch is viable.

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