B2B Marketer
Issue No. 46 - April/May 2009
Hey buddy, how much for the brand?
by Kimon Lycos
Damn good question! Exactly how much can you sell a brand that represents technology, innovation or engineering for? In the world of B2B, there are untold riches within a small accounting term called “Goodwill.”
Goodwill is something that kicks into gear when a company is sold, and shareholders want money not just for assets and profit performance but also anything intangible (all the stuff not nailed down). This is the very nature of goodwill and normally is applied to the perceived loyalty of a company’s customers. It is with this loyalty, that the link and case can be made for selling the brand as you would with any other asset.
A B2B brand is built using a variety of different methods, media, creative ideas and customer experiences.Each of these things on their own carries different values and contributes in different ways. When used together and orchestrated, you can generate significant value in monetary terms for the brand to be valued as an asset.
Companies, products or services that are enhanced beyond functional purposes, with a brand built and managed correctly will generate an experience and add a layer of desire. It is this layer of desire that is the reason why customers are prepared to pay a premium for one industrial brand over another.
For those creating, managing and living with B2B brands, the key question is, “if the business was placed on the open market, how much would someone pay for the logo, the name, the trademarks and everything else you have used to build the brand?”
MDs tend to go a bit green when they think of this because it hits them that during years of existence they have placed little emphasis on branding.
Rather they have been serving a market, and not building anything extra into the customer relationship,
that can eventually be a valuable asset and sold. All that time and opportunity has been squandered because the business could be swallowed up and no-one would care. Certai...
