What is Brand Value?

“Brand value is the ‘perceived value’, and how often people will choose one brand over alternatives. Brand value is important because when people perceive that a brand is distinct and aligns with their personal values, it’s a really powerful competitive advantage.”

So, brand value refers to the worth of a brand to the consumer. It is a subject of much debate in the world of marketing, and there are two schools of thought about its definition:

Financial worth – This is the monetary value assigned to a brand. Perceived worth – The worth that consumers perceive your brand.

Is Brand Value the Same As Brand Equity?

If the term brand value makes you think of dollars and cents, you’re partly correct.

When customers know and love your brand, they are willing to pay more. This is known as brand equity. In other words, brand equity is the price above the product’s market value that consumers are willing to pay.

Brand equity and brand value are linked, but strictly speaking, they are not the same thing.

Why Is Brand Value Important?

Let’s imagine you’re negotiating the acquisition or merger of a major brand.

If you were taking over Coca-Cola, you would be buying a lot more than the recipe for a caffeinated, sugary drink. You would be benefiting from the name, logo, and other brand elements that consumers instantly recognize and trust.