Value Added Method
Posted: Sat Feb 01, 2025 6:52 am
The essence is to study the brand through the opinion of buyers. It is necessary to find out how much extra the consumer is willing to pay for using the branded product.
Value Added Method
Source: shutterstock.com
It is calculated as follows:
The average cost is compared with the brand price.
They identify unbranded lithuania email list analogues and compare prices for the end consumer.
The difference is multiplied by the potential sales volume of the product over a certain period of time.
The positive aspect of this method is that it has economic logic. This pricing method was born out of customer loyalty, which is a significant, yet intangible, feature of a brand.
The disadvantage of the method is that incorrect data is often used. An example is the average price and the forecast of future sales.
Method of financial flow analysis
The methodology was created by the marketing company Interbrand. The company constantly analyzes the value of brands of major global manufacturers and publishes summary ratings.
First, the company's financial condition is assessed. Using economic methods and expert assessments, the profit from the brand is calculated. Then a forecast of income in the near future is made. The result is adjusted according to the "brand strength" (the agency's term).
The advantage of the method is that dozens of coefficients and parameters are taken into account. The disadvantage is that it is impossible to repeat it independently; a marketing agency must conduct the research. It is not necessary to resort to the help of Interbrand, other agencies use similar methods.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153438
What influences brand value
Each appraiser calculates in his own way, but there are common points that are always kept in mind: market share, loyalty of the target audience, financial indicators of the holding and the industry. In economic textbooks, these factors are broken down into a larger number of components.
Economists believe that the value of a brand depends on its length of service on the market, legal support and the future of the industry in which it is present.
Value Added Method
Source: shutterstock.com
It is calculated as follows:
The average cost is compared with the brand price.
They identify unbranded lithuania email list analogues and compare prices for the end consumer.
The difference is multiplied by the potential sales volume of the product over a certain period of time.
The positive aspect of this method is that it has economic logic. This pricing method was born out of customer loyalty, which is a significant, yet intangible, feature of a brand.
The disadvantage of the method is that incorrect data is often used. An example is the average price and the forecast of future sales.
Method of financial flow analysis
The methodology was created by the marketing company Interbrand. The company constantly analyzes the value of brands of major global manufacturers and publishes summary ratings.
First, the company's financial condition is assessed. Using economic methods and expert assessments, the profit from the brand is calculated. Then a forecast of income in the near future is made. The result is adjusted according to the "brand strength" (the agency's term).
The advantage of the method is that dozens of coefficients and parameters are taken into account. The disadvantage is that it is impossible to repeat it independently; a marketing agency must conduct the research. It is not necessary to resort to the help of Interbrand, other agencies use similar methods.
How to achieve multiple growth in traffic and sales from your website?
Alexey Boyarkin
Dmitry Svistunov
Head of SEO and Development
Read more posts on my personal blog:
I have always been concerned about the issue of moving to a fundamentally new level. So that the indicators would grow not by 2 or 3 times, but by several orders of magnitude. From a thousand visits to ten thousand or from ten thousand to a hundred thousand, if we are talking about a website, for example.
And I know that such leaps are always the result of painstaking work in five areas:
Technical condition of the site.
SEO.
Collection of site semantics.
Creating useful content.
Working on conversion.
And at the same time, every manager needs an increase in sales and the number of applications from the site at the moment.
To get this growth, download our step-by-step template for increasing sales from the site:
Download template
Already downloaded
153438
What influences brand value
Each appraiser calculates in his own way, but there are common points that are always kept in mind: market share, loyalty of the target audience, financial indicators of the holding and the industry. In economic textbooks, these factors are broken down into a larger number of components.
Economists believe that the value of a brand depends on its length of service on the market, legal support and the future of the industry in which it is present.