ISO 20671-2:2023

INTERNATIONAL ISO
STANDARD 20671-2
First edition
2023-03
Brand evaluation —
Part 2:
Implementation and reporting
Évaluation des marques —
Partie 2: Mise en oeuvre et rapports
Reference number
© ISO 2023
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Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 Steps of brand evaluation .2
4.1 General . 2
4.2 Step 1 — Brand development . 3
4.3 Step 2 — Brand strength . 3
4.3.1 General . 3
4.3.2 Methods for determining the indicators for brand strength . 4
4.4 Step 3 — Brand performance . 5
4.4.1 General . 5
4.4.2 Revealed preference approach. 6
4.4.3 Stated preference approach . . 7
4.4.4 Impact on financial results. 7
4.5 Step 4 — Financial brand value . 8
5 Reporting . 8
6 Continuous improvement .9
6.1 General . 9
6.2 Executing a continuous improvement cycle . 9
6.3 Brand accountability . 9
6.3.1 General . 9
6.3.2 Connection between marketing and consumers . 10
6.3.3 Connection between marketing and finance . 10
6.3.4 Connection between finance and investors . 10
Annex A (informative) Example of input elements and audit questions .11
Annex B (informative) Example of output dimensions and audit questions .12
Annex C (informative) Example of methodology for aggregate brand strength .14
Annex D (informative) Self-assessment criteria for the brand evaluation framework .17
Annex E (informative) Example of indicator grouping .18
Bibliography .19
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Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
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electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www.iso.org/directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
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on the ISO list of patent declarations received (see www.iso.org/patents).
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www.iso.org/iso/foreword.html.
This document was prepared by Technical Committee ISO/TC 289, Brand evaluation.
A list of all parts in the ISO 20671 series can be found on the ISO website.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www.iso.org/members.html.
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Introduction
This document is part of the ISO 20671 series of standards and distinguishes between and expands
on ISO 20671-1 and other ISO brand-related standards including ISO 10668. It offers an approach to
implement an evaluation and report its findings conforming with ISO 20671-1 and ISO 10668. This
approach acknowledges that operating entities change and grow over time and therefore includes a
process that adapts to the changing needs and objectives of the organization.
ISO 10668 is an accounting-driven valuation process representing a point-in-time financial value of the
brand that can enable an organization to report this value. Organizations conforming to the processes
of ISO 10668 are independent of the brand-owning entity and are used to providing an assessment of
the brand. Brand valuations showing conformity to ISO 10668 processes can be used to convey the
financial value of a brand to external audiences such as investors, tax authorities, and prospective
buyers or licensees of the brand.
ISO 20671-1 is a process standard that a brand-owning entity applies internally or with the support of
an external brand evaluator. It provides a framework for evaluating an operating entity’s brand over
time with a focus on the customer and other relevant stakeholders. One potential use of the standard is
to support management and the marketing function, determine the allocation of funds for investment
with the objective of developing brand(s) and serve as the basis for external reporting of brand
performance.
ISO 20671-1 provides a conceptual framework for conducting brand evaluations as shown in Figure 1
below.
Figure 1 — Brand evaluation framework
A full implementation of the ISO 20671-1 brand evaluation framework enables an organization to
address four steps of evaluation:
a) Brand development: Identifying how the organization views the brand’s role within the
organization (brand elements), invests in it financially and operationally (brand support) and
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subsequently delivers it to the market including marketing, stakeholder engagement and brand
protection (brand activity). These are quantified by relevant input indicators.
b) Brand strength: Quantifying output indicators of brand strength across the five dimensions of
evaluation.
c) Brand performance: Documenting and validating the indicators of brand development and
brand strength on customer choices within the market (market choices) as well as to determine
the financial implications (financial results) for the brand owner. This includes identifying and
calculating the effect that the brand strength has on financial performance and the effectiveness of
brand development achieving the organization’s intended goals.
d) Brand value: Providing a point-in-time monetary value of the brand’s total contribution to the
enterprise given its anticipated time horizon.
e) Continuous improvement: Creating a feedback loop for improvement in returns through reviews of
changes in brand evaluation results between two periods.
Continuous improvement is informed by changes in brand evaluation results between two periods.
Presently, brands are often taken as incidental parts of a business, necessary for the sake of having a
name, a logo or a trademark. Brands should be proactively managed and measured to increase entity
value. Brands should be managed using the brand evaluation standard to increase value as established
by improvements in brand strength and brand performance and, ultimately, the financial value of the
brand.
Brand evaluation thus creates a feedback loop for the continuous improvement of a brand that creates
greater value for the entity over time. By investing (changing the composition and value of brand
input factors) based on such feedback, brands can be improved to provide greater benefits and better
experiences to customers and other stakeholders and higher returns on the brand asset to the entities
which use and own the brand. This document, therefore, constitutes a basis for high-level corporate
planning and governance.
The principles of this framework also apply to external investors and lenders. By monitoring brand
strength, brand performance, and/or brand valuation, return targets can be defined not only for the
internal planning process but also for investors and lenders who realize the importance of brands as
valuable assets.
The framework recognizes that any brand evaluation is complex and multidimensional, and it
constitutes information for multiple uses. The value of a brand can be evaluated simply as brand
strength using dimensions and indicators appropriate to the brand. Brand strength is a necessary step
in evaluating brand performance, the impact of the brand in the market and where other variables such
as competition can affect outcomes. Brand performance can in turn be used as part of a method for
determining a monetary brand valuation. Improvements to brand strength can be identified through
continuous measurement of the relationship between brand input factors and the dimensions that
make up brand strength.
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INTERNATIONAL STANDARD ISO 20671-2:2023(E)
Brand evaluation —
Part 2:
Implementation and reporting
1 Scope
This document provides requirements for implementing and reporting brand evaluations.
2 Normative references
The following documents are referred to in the text in such a way that some or all
...