Product and Pricing Essay Example | Topics and Well Written Essays - 500 words

Product and Pricing - Essay Example All of these techniques are employed in order to ascertain the financial or monetary amount of a certain brand. For example, using communication investments as a form of brand valuation takes into account all of the expenditures incurred in communicating the brand in the target market and adjusting it for inflation. In this technique the company also takes into consideration the opportunity of using the fund in other investments such as bonds. However, the author also emphasizes that the brand is an "intangible asset." It is more than the name or the logo printed in the packaging of certain products. The brand is not what it is but what it stands for. According to Chevron (4), a brand is "a covenant with the customer, a promise that the brand and the product it names will conform to the expectations that have been created over time." He also highlights that the existence of the brand is because of the company's "commitment to its external values." Thus, as brand is intangible and commitment is not quantifiable, the real value of a brand cannot be fully taken into account by attributing a monetary value to it: "Because all those financial valuation methods are but educated guesses, we cannot rely on any one" (Chevron 10). It is clear that the author disagrees with the too simplistic or very complicated techniques employed by the financial a