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Frequently Asked Questions
Question:
How long does it take to conduct a brand valuation?
Answer: We are set up to complete the entire process in between
four to five weeks. That allows for our workload. If research
has to be conducted that usually takes about eight weeks and
that then becomes the time limit.
Question: Is this just a marketing
device or can it be used for other purposes?
Answer: Because the basis of the model is Discounted Cash Flow
(DCF), the approach is consistent with most valuation methodologies.
Our valuations have been examined by leading accounting firms
and by the South African Revenue Services (SARS). We are confident
that valuations produced using our method can be used for taxation
purposes and to the extent, to which it is currently possible.
Question: Can a BrandMetrics valuation
be used to evaluate the effectiveness of advertising campaigns
on say TV or in print?
Answer: That level of application still eludes us. We are able
to measure the dimensions that marketing communications are
asked to support, but as yet we cannot with any certainly break
this down by media type. We are working on it!
Question: Since the method uses DCF
is not based on assumptions and subjective judgment?
Answer: Yes. The basic financial tool is, after all, discounted
future cash flows. But we have introduced ways of dealing with
these assumptions that are both conservative and which reduce
the subjectivity.
Question: How much executive time does
the process take?
Answer: Relatively little. In addition to the time spent at
the valuation presentation we need about two hours from each
of a good cross section of management at a workshop. We will
also spend between two and three hours with financial people
drawing the data we need. Other than that it is our time in
acquiring knowledge about the brand and how its users think
about it.
Question: What does it cost?
Answer: Invite us to show you our presentation. Once we understand
your brand structure we will prepare a detailed proposal for
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