Trademark or brand means symbols, logos that are used for referring to the products or representing them. It can be called in various terms such as trademark, brand, etc. Brands are more meaningful than being just a logo or trademark that differentiates products and indicates ownership in terms of business. In fact, brands have monetary values that can be appraised, studied, and researched on world-famous brand values. For example, the Interbrand group has revealed the 2018 brand data and information for education. The four most valuable brands are Apple, Google, Amazon, and Microsoft.
Therefore, the brand is considered a unique type of property and has a massive influence in business, intellectual property rights, legal rights; continuously developed and is also one of the tools and strategies to compete and differentiate yourself from the market. In this case, the business organization must have strong brand management in order to be accepted by consumers resulting in the concept of brand and trademark valuation.
According to the consumer’s perspective, brands are measured from awareness, attitude, attachment, and loyalty. On the other hand, the value of brands in terms of products is measured from market share, revenue, etc. Therefore, adding value to the brand is basically increasing the business’s intangible assets and benefits when launching new products, blocking competition, especially for those entering the market.
Stronger brand values tend to receive more recognition by traders, distribution channels, and wide distribution of products. Those highly well-known brands tend to have more negotiating or bargaining power, resulting in a lower amount for placing the products and receiving a better allocation of space in the store, market, etc. That is why brands are significant and valuable to the products. Therefore, brand valuation is another way to measure the strength of each brand, level of business which includes communication to consumers and society to be recognized in today’s market.
There are plenty of valuation methods to use in brand and trademark valuation, which depend on types of products, sufficiency, and reliability of the information. In addition, brand status on the appraisal date also has an influence on selecting the valuation method. However, more than one valuation method should be used in this appraisal to compare and review the appraised value. All the valuation methods that can be used for brand and trademark valuation are Cost Approach, Market Approach, and Income Approach by calculating the difference in selling price (Price Premium), the right rental fee (franchise method). This is considered a very high acceptance method for this type of property valuation.