ABOUT MMVB 2007
MMVB 2007 is a major strategic branding initiative by the Association of Accredited Advertising Agents (4As) in collaboration with Interbrand who pioneered and still globally dominates the established methodology of brand valuation.
The MMVB provides a brand value that is a top-line measure of the financial contribution the brand provides to the business. Brand value brings to marketing what “earnings targets” or “financial hurdle rates” bring to other aspects of business.
The payoff comes when one looks behind the number – a single number only tells you so much. It’s important to understand what drives brand value: intangible earnings (the cash flow of a business not associated with such tangible assets as equipment or materials), the role of brand (a measure of how much brand influences purchasing decisions), and brand strength (a benchmark of a brand’s relative risk compared to competitors).
Understanding the drivers of brand value can inform management action – from overall business strategy to specific marketing tactics. It is an easy-to-understand metric to help brand owners determine present brand performance, and is a measure against which to set future targets. It will help make branding a more important aspect of Malaysia business management.
MMVB tells you whether owners are investing adequately in their brands. Putting an economic value on a brand (overall and by segment) helps to make a strong business case for marketing investments, overall and across a brand portfolio.
It also tells owners if they have a marketing strategy that positions their brands around the right messages. Customers make decisions every day between one brand and its competitors. Analyzing the role of brand in those decisions helps owners to focus their strategy on the attributes that differentiate their brand from others, and strengthens relationships with their best customers, ensuring future earnings.