Theory And Practice Of Brand Capitalization In China

This article tries to research the theory and practice of brand capitalization, and to find an effective method of brand evaluation, to get the tangible way for intangible asset, objectively, especially intangible brand asset.By confirming the definition and characteristic of brand and brand capitalization, a conclusion has been drawn that the value of branded product is composed by value of use and psychological satisfaction. Brand added value has been classified.Quantification of brand value is the precondition for brand capitalization. By researching the added price, added quantity, the relation between brand cost and benefit, and related characteristic, a more convenient and exact valuation system—Ca (core advantage) type method has been built.On this base, there have been two different way for capitalization of brand assets, respectively related with brand investment and brand credit.Brand credit limit line can be ascertained ultimately by remnant value, attenuation period curve.Base on brand released and not released, the brand investment value has been researched. It has been ascertained that related management ability and brand cost efficiency can be taken as variable for brand investment activities.This brand value evaluation system is based on the type of brand core advantages. Compared with present evaluation system, it is more exact, more adaptive and more direct. It comes from the method of marketing, which has many mature methods to measure Variables. But it is possible to be difficult and time-consuming to calculate the parameters.Then, there have been three measures to realize brand capitalization realistically, which are figuring in stock, license and credit, and with related cases to explain them.Last, some debates were taken for brand capitalization's related problems, phenomenon and solutions.