The end of voodoo brand management?

Executives seeking to meet the challenge of managing brands head on should consider a new approach - dynamic brand value management (DBVM), which sets out to identify, quantify, and manage the complex system that underpins a brand's value. It adds to existing marketing techniques key concepts from 2 methodologies - the resource-based view of the firm and business dynamics. DBVM rests on 3 core ideas: 1. A brand's value equals the net present value of its future cashflows. 2. This value depends on the health of the brand's key resources. 3. These resources evolve and interact to create a complex system containing time delays and feedback loops. DBVM enables the quantification of the drivers of brand value and structuring them within a decision framework. Some of the insights DBVM yields include: 1. Copying best practice does not always work. 2. Soft variables are critical and should be quantified. 3. A brand has value but not just one value. CEOs with a DBVM outlook regard a brand not as a name but almost as a living entity.