What is a brand? Does a brand have a financial value? These are critical questions that drive the strategic marketing decisions of corporations around the world. In general, marketers define brand as the position that a company/product holds in the minds of the consumers. It follows then that if the brand holds a position in consumers’ minds, then it would definitely translate into a financial value for companies.
Each year, Interbrand does a financial analysis that seeks to define, in dollars, the value of a company’s brand – the result is the annual Best Global Brands ranking. In order to be included in the analysis the brand must be global – it must have successfully crossed geographic and cultural boundaries:
- At least 30% of revenue must come from outside the brand’s home country.
- It must have presence in at least three continents as well as broad geographic coverage in emerging markets.
- There must be sufficient publicly available data on the brand’s financial performance.
- Economic profit must be expected to be positive over the longer term, delivering a return above the brand’s operating and financing costs.
- The brand must have a public profile and awareness above and beyond its own marketplace.
Interbrand’s brand valuation methodology seeks to determine, in customer and financial terms, the contribution of the brand to the company’s business results. There are three key components in the methodology for the valuations: analyses of the financial performance of the branded products or services, of the role the brand plays in the purchase decision, and of the competitive strength of the brand.
The results – well, see for yourself by viewing the interactive report at http://interbrand.com/best-brands/best-global-brands/2017/. The top global brands may surprise you.
Group Activities and Discussion Questions:
- Ask students to define “brand.” What is it? Does it have value to a company?
- Have students take out a piece of paper (or write answer on laptops). Ask them to choose what they thing are the top 10 most valuable brands in the world. Then show the top 10 list from the Global Brand report.
- Bring up the Web site: http://interbrand.com/best-brands/best-global-brands/2017/
- Show the video explaining the report: http://interbrand.com/best-brands/best-global-brands/methodology/
- Show students several of the sections within the site and view some of the videos as a class.
- Divide students into teams and assign each team an industry category to examine: automotive, apparel, beverage, electronics, energy, etc.
- Have each team present key findings from the industry sector they examined.
- How can these findings be applied in marketing strategies?
Source: Brandchannel.com, Interbrand.com
Logos and branding surround us. Without even realizing it, consumers see an estimated 5,000 to 10,000 ads per day. Yes, that sounds like a lot, but start counting how many ads you see and hear starting when the alarm clock goes off – bet you get tired of counting by time you get to breakfast!
Logos are a big part of how brands penetrate the consciousness of consumers. A strong logo should be simple, singular, recognizable, and represent the brand attributes. Many logos have deeply rooted meanings that portray the brand’s history and values. Consider the following examples:
- Beats by Dre: Represents a human head wearing earphones.
- Amazon: A yellow line links A to Z.
- Tour de France: A cyclist as the letter R, and the yellow wheel representing racing during the day.
- BMW: The colors of the Bavarian flag are in the logo.
- Tostitos: See the people represented by the middle Ts share a bowl of salsa.
How many different logos do you see right now?
Group Activities and Discussion Questions:
- Poll students – how many logos do they see in a day?
- Now, have each student count the number of logos that they are carting around today. Include backpacks, clothing, electronics, etc. Add the number from each student and see how big the count is at.
- Discuss the importance of logos in branding efforts.
- Do a Web search for articles that discuss logos. One such article: https://designschool.canva.com/blog/hidden-meanings-behind-50-worlds-recognizable-logos/
- Divide students into teams. Have each team design a new logo for a product of their choice.
- Debrief by having each team show its logo. Have a class vote on a favorite.
Source: CBS News, New York Times, other news sources