Financial brand valuation: a semiotic approach to link marketing and finance

Paulo de Lencastre, Nuno Côrte-Real, Ana Côrte-Real, Cosme Almeida*, Pedro Veloso

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

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.
Original languageEnglish
Title of host publicationDevelopments in marketing science
Subtitle of host publicationproceedings of the Academy of Marketing Science
EditorsPatricia Rossi, Nina Krey
Place of PublicationCham
PublisherSpringer Nature
Pages461-474
Number of pages14
Edition1
ISBN (Electronic)9783030025687
ISBN (Print)9783030025670
DOIs
Publication statusPublished - 2019
EventAcademy of Marketing Science World Marketing Congress - Porto, Portugal
Duration: 27 Jun 201829 Jun 2018

Publication series

NameDevelopments in Marketing Science: Proceedings of the Academy of Marketing Science
ISSN (Print)2363-6165
ISSN (Electronic)2363-6173

Conference

ConferenceAcademy of Marketing Science World Marketing Congress
Abbreviated titleAMSWMC 2018
Country/TerritoryPortugal
CityPorto
Period27/06/1829/06/18

Keywords

  • Brand
  • Equity
  • Financial value
  • Marketing value
  • Semiotics
  • Valuation

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