Thursday, February 17, 2005

People’s eyes glaze over and they lose interest

There is currently an internal debate on which brand names the company should be using and which should be dropped. You can work out the value of a brand name by assessing the value of a company if it is sold (usually five times the annual profit) then deducting the value of any fixed assets (stock, buildings etc). The amount left over is the company’s “goodwill”, most of which represents the brand equity of the company.

The problem with this argument is that it is abstract, and I know from experience whenever I try to talk about abstract issues people’s eyes glaze over and they lose interest.

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