An Interview with Interbrand Chairman, Rita Clifton

In February 2012 in a paper titled, “The Role of Brands in Human Culture” I noted the significance of branding in our world.  To illustrate this, we should note that the top 10 global brands (as measured by the Interbrand index) have a combined value of over $432 billion (against their total market capitalisation of $1.7 trillion).  That means that 24% of the real economic value of these organisations lies in their brands. Think about that for a moment… That’s $432 billion of real economic value which exists in potentially the most intangible asset of a business, an asset which only exists in people’s minds.

Brands are more than just intellectual property, they become the underlying common ethic that affects all aspects of a firm’s activities.  In the above paper Philip Kotler (widely regarded as the most influential marketer of all time) notes that, “…An increasingly number of companies see their brand as the platform for running their business.  The brand creates an identity for the product and/or company in the marketplace.  It requires the company to think deeply about its mission, vision, and values. The company has to work hard at developing the image that it wants customers to have of the offering.  The brand must not only convince prospective customers and draw them to the brand but also be deeply believed in by the employees and other stakeholders of the company...” That note about belief is critical.  Branding is a psychological entity that manifests economic value and firms of all sizes.

To learn more about the economics of branding, I spoke to Rita Clifton, Chairman of Interbrand London, who are regarded as one of the world’s top branding consultancies and the pioneers of brand valuation.  Continue reading →