Calculated Intangible Value and Brand Recognition

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Boncella, Robert J.
Martin James
Boncella, Ann Marie
Washburn University. School of Business
Kaw Valley Bank
Issue Date
October 2005
Alternative Title
How can a company value its various intangible assets? By definition, intangible is "a good, service, or effect that has no monetary value." One example of an intangible asset is employee knowledge. For instance, an employee in the advertising department has intangible assets that are comprised of knowledge of customer demographics, company goals, and what has or has not worked in the past (to name just a few), all of which lead to successful or unsuccessful marketing campaigns. Therefore, a strong relationship with customers is built by using a company's intangible assets generated by employees and vendors. The strength of this relationship is reflected in the calculated value of the firm's intangible assets and the firm's brand recognition. A company with stronger brand recognition has more value residing in its intangible assets.