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Financial Brand Valuation: A Semiotic Approach to Link Marketing and Finance

  • Paulo de Lencastre
  • Nuno Côrte-Real
  • Ana Côrte-Real
  • Cosme AlmeidaEmail author
  • Pedro Veloso
Conference paper
Part of the Developments in Marketing Science: Proceedings of the Academy of Marketing Science book series (DMSPAMS)

Abstract

The purpose of this paper is to develop an exclusively stakeholder-based financial brand valuation approach.

A semiotic model is used that recognizes three components in the brand: identity, object, and response. It is noted that the financial valuation purpose is to predict the influence of brand identity signs—the protectable trademarks as property rights—on the economic benefits of their owners. These benefits depend on the response of the stakeholders who are generators of cash-ins and cash-outs. In order to separate the “trademark influence,” stakeholders are confronted with a change scenario to a trademark that is unknown to them and asked if this change alters their behavioral response toward the brand. The affective response is also evaluated to establish the “influence of risk” in realizing the future benefits.

This approach makes it possible to transform a rigorous concept from a legal and financial point of view, but one which is incomprehensible to the common stakeholder, to a scenario that the stakeholder can understand and respond to reliably.

Grounding the brand’s financial valuation in semiotics is relevant because it distinguishes legal, marketing, and finance perspectives about the same objective, by framing them in common concerns of objectivity and intelligibility.

Keywords

Brand Equity Valuation Financial value Marketing value Semiotics 

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Copyright information

© Academy of Marketing Science 2019

Authors and Affiliations

  • Paulo de Lencastre
    • 1
  • Nuno Côrte-Real
    • 1
  • Ana Côrte-Real
    • 1
  • Cosme Almeida
    • 1
    Email author
  • Pedro Veloso
    • 1
  1. 1.Catholic University of PortugalPortoPortugal

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