ISO 20671-1:2021

INTERNATIONAL ISO
STANDARD 20671-1
First edition
2021-11
Brand evaluation —
Part 1:
Principles and fundamentals
Évaluation des marques —
Partie 1: Principes et fondamentaux
Reference number
© ISO 2021
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ii
Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 Principles of conducting a brand evaluation . 2
4.1 General principles . 2
4.2 Transparency . 3
4.3 Consistency . 3
4.4 Objectivity . 3
5 Brand evaluation fundamentals .3
5.1 General . 3
5.2 Elements . 3
5.2.1 General . 3
5.2.2 Tangible elements . 4
5.2.3 Quality elements . 4
5.2.4 Innovation elements . 4
5.2.5 Service elements . 4
5.2.6 Intangible elements . 4
5.3 Dimensions . 4
5 . 3 .1 L e g a l d i men s ion . 4
5.3.2 Customer/other stakeholder dimension . 4
5.3.3 Market dimension. 4
5.3.4 Economic and political environment dimension . 5
5.3.5 Financial dimension . 5
6 Brand evaluation considerations . 5
6.1 Personnel . 5
6.2 Practices and processes . 5
6.3 Brand evaluation audit . 5
6.4 Data sourcing . 5
6.5 Brand evaluation results . 6
Annex A (informative) Examples of indicators for elements and dimensions .7
Bibliography .12
iii
Foreword
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described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
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Attention is drawn to the possibility that some of the elements of this document may be the subject of
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www.iso.org/iso/foreword.html.
This document was prepared by Technical Committee ISO/TC 289, Brand evaluation.
This first edition of ISO 20671-1 cancels and replaces ISO 20671:2019, of which it constitutes a minor
revision. The changes are as follows:
— The document has been renumbered as ISO 20671-1 as part of the ISO 20671 series.
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.
iv
Introduction
0.1  General
Brands are one of the most valuable yet least understood assets.
A brand identifies an entity’s goods, services or the entity itself as distinct from what is offered by
another entity. A brand can thus be connected to an entity, a product/service, lines/portfolios of
products, a city, a region, etc. The offering entity can be commercial or not-for-profit. In all cases,
however, the function of the brand is to establish a distinctive identity for the entity in the market.
In practice this has traditionally implied communicating the unique benefit(s) of the entity’s goods or
services as compared to other goods or services that might otherwise be seen as similar. This benefit(s)
can be functional as well as emotional or social. Increasingly, brands also seek identification with
experiences that are connected with an entity through its actions, services or other operations. These
experiences go beyond the mere usage of the product or service and lead to a higher-level engagement
with them. Brands ultimately exist in the minds of stakeholders as the impressions, benefits, and
experiences that they associate with a good or service.
Brands have value to both, the entities that have rights to the brand and to stakeholders who value
the functional/emotional/social benefits and experiences they associate with the brand. The primary
purposes of a brand are to increase the total business value of the brand-using entity, reduce risk, and
extend the sustainable existence of the brand-owning entity. Even though brands vary markedly in
terms of the benefits or experiences that define them, it is undisputable that a strong brand can bring
financial benefits. In practice, strong brands attract customers and add revenue through increased
price and/or volume premiums including repeat purchase loyalty. More broadly it is also the case that
brands can reduce costs and create a competitive advantage in the minds of stakeholders. A brand thus
has an impact on revenue and profitability and can influence corporate value.
0.2 Brands as financial assets
From an entity’s viewpoint, a strong brand is a valuable asset. Its value ultimately depends on the value
of the brand to stakeholders. Therefore, there are two different vantage points from which an offering
entity can assess the value of its brands. One is through a financial valuation approach. ISO 10668
provides more details on approaches for doing brand valuations. The second vantage point is through
a non-financial evaluation approach. This document puts forth a rigorous framework for the latter and
a set of principles for conducting a brand evaluation from an input/output point of view. As such, it
is intended to serve as the standard for the development and implementation of other standards for
brand evaluation and valuation. Since it is a meta-standard, it is anticipated that further development
will result in greater precision in defining terms, measures, and processes.
0.3  Brand evaluation and brand valuation
Brand evaluation refers to the measurement of the value of a brand using relevant indicators of input
brand development elements and output dimensions that assess the impact of the brand on consumers.
Brand valuation refers to the estimation of the monetary value of a brand to a company in a transaction
whether it be internal or external (as with an investment, purchase, sale or licensing agreement). It is
the financial equity the company has in the brand as a transferrable asset. Brand evaluation is broader
and includes non-monetary considerations.
Brand evaluation and brand valuation are related and synergetic with each other. Brand valuation is
defined from the entity’s point of view. Brand evaluation derives from the stakeholder’s point-of-view.
This document focuses on brand evaluation but considers this within a general framework that
recognizes the relationship between brand evaluation and brand valuation.
0.4  Brand evaluation framework
The complete brand evaluation and brand valuation framework is illustrated in Figure 1. The
framework has three parts. Each part calls for identifying the value of a brand in a particular way. Each
part builds on the prior part in moving from evaluating the brand from the stakeholder’s to the entity’s
v
point-of-view. It identifies input elements used to develop brands and output dimensions that assess
brand strength, which leads to brand performance, financial results, and ultimately brand valuation.
Emphasis in this document is on the overall principle of analysing and reporting brand value and
on details of the i
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