How to Calculate the Value of a Brand? The Price Premium Method

Brand Valuation
Knowledge Center


Next Topic

Brand Valuation > Forum

Sarah Daghman, Lecturer, Russian Federation
Brands and brand valuation are of primal importance for marketing purposes and for increasing the profits and market value for the company owning the brands. They allow strategic brand management and financial transactions. There are several direct and indirect methods for measuring the value of a company's brand. Below I would like to discuss one of the most frequently used methods with you: The Price Premium method. The Price Premium Method It is normally assumed that a "branded product" generates an additional (perceived) benefit for consumers, for which they are willing to pay (a little) extra. As a result the product with the brand can be sold for more than a similar "non-branded product". The brand adds value to the product. This added value can be measured with the Price Premium Method. To determine the brand value in this way you must follow these steps:
  1. Choose a "branded product" and a similar "non–branded" product;
  2. Define the price difference betwe (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in

  Meheresh, Management Consultant, India

Absence of non Branded Products

This method is useful when a product is available (...) 30-9-2020

  Sarah Daghman, Lecturer, Russian Federation

Methods to Evaluate the Brand Value

@: As you mentioned there are many methods to calc (...) 30-9-2020

  Gautam Mahajan, CEO, India

How Important is the Brand

If we can measure the importance of the brand, and (...) 4-10-2020

  rustenburg, Business Consultant, Netherlands

Compare the Branded Product with the Direct Competitor

Start with the right starting points, e.g. compara (...) 12-10-2020

More on Brand Valuation
🔥The Interbrand Brand Valuation Methodology
How to Calculate the Value of a Brand? The Price Premium Method
Brand Asset Valuator Questionnaires
How to Calculate the Return on Social Media Marketing?
Kotler's New Metrics for Return on Marketing Investment (ROMI)
Best Practices
🥇How to Deal with Brand Neophobia?
🥈Brand Asset Valuator Strategies
🥉Measuring Brand Value through Media Content Analysis
Special Interest Group Leader

Are you an expert in Brand Valuation? Sign up for free

Brand Valuation
Knowledge Center


Next Topic

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2020 12manage - The Executive Fast Track. V15.6 - Last updated: 29-10-2020. All names ™ of their owners.