Brands add value.
Brands cannot exist in any other way than creating value.
Value creation is their metabolic function. Brands are alive.
Their metabolism relies on all six capitals (of a company, of an individual. These six rely on the management of the following assets (asset management):
When the above assets are properly managed, they accumulate in six respective capitals owned by different stakeholders:
The brand value is the cumulative value of all six capitals.
All six capitals explained by the value chain management represent the metabolism of the brand. A brand without added value is a contradiction in terms.
The value can be negative from the point of view of one stakeholder and positive from the point of view of another stakeholder. Consequently, the brand dies with the last stakeholder. Until that point, the added value is added by default. Brands add value with a little help from users. When it comes to brands, the user is a stakeholder, and the stakeholder can only be the user.
The relationship between brand and user is rock’n’roll. Users rock the brand just as the brand rocks the user. Both parties expect to be rocked and rolled with dignity, at least when it comes to rock’n’roll. Brands and people are physical and memetic entities, co-evolved living beings.
Brands cannot exist in any other way than to create value. Brand values and capital market valuation should be based on the results of asset management of all six capitals.
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Andrej Drapal on ResearchGate
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