Brand value is generated by building a reputation that creates an incentive for customers to buy your product. A strong brand is distinctive (and not descriptive) and normally requires a first class marketing strategy. While brand recognition plays an important role in the success of any business, a company's marketing budget will often depend upon the difficulty in educating prospective customers of the brand. Consumer goods, for example, normally require a much more extensive marketing budget than business-to-business products and services.

The value of a trade mark depends on the extent to which brand recognition contributes to the success of the products, including the mark's influence on a prospective customer's decision to purchase and the mark's contribution to profit margin and market share.

This value is not simply a function of the size of your marketing budget. It depends on the extent to which your message is received by your target customers, the clarity and effectiveness of the message you give them and their perception of your ability to deliver what is promised by that message.

Brand value is crucial to any high margin business. Innovative technology is of little use if your target audience is not aware of it. Whether your product or service is entirely new or simply better than the competition, this advantage only has value if it is exploited commercially.