Brands and other intangible assets - Essay Example

The financial status with a brand becomes more distinguished as relations to consumers are built through the brand valuation. Recognizing the brand as an intangible asset becomes essential to a corporation because of the impact it has on consumer spending as well as on the financial future of a company. If finances begin to fluctuate from stable growth to increases and decreases in the company, then it can be noted as a direct link to the intangible asset of brand valuation (Wood, 662, 2000).

Branding is a concept that began centuries ago as many began to associate the idea of ownership with the products they owned. Branding a home or slaves was the concept used by those who were interested in keeping and maintaining a personal establishment. The main concept was to recognize ownership specifically to gather a return on investment for the ownership. The concept of branding for businesses began to boom with the emergence of the industrial revolution and the building of companies into national entities.

During this time, the competition to create products at a mass level while outdoing competitors became the main concept. In the 1920s, General Motors, Ford and companies such as P&G began to use their name identity as a tactic for overcoming the competition. As these brands were identified as an intangible asset demand increased as well as the accounting structure. As consumerism began to rise in the 1980s, most businesses began to incorporate branding into their main identity as it was noted that financial differences occurred when a brand was recognized.

The main concept was to create a higher amount of demand from potential customers while allowing customers to become loyal to the brand identity over other competitors. The result was the ability to not only build reputation, but also to change the financial increases within a corporation. The concept of brand identity during the 1980s and 1990s also began to emerge at a global level,