Subject The article states that the reduction in the number of commercial banks in Russia, which is accompanied by integration of credit organizations remaining in the banking services market, and the increased share of foreign banking capital in the Russian banking system predetermine the intensification of competition among commercial banks and force them to look for new forms and methods of their competitiveness enhancement. Among them, the aspiration to form or develop a commercial bank's brand deserves special attention. I emphasize that though the brand concept is widely used in scientific literature and business practice, there is no accurate definition of its essence yet. There is no its definition in the domestic legislation either. Therefore, there exists certain terminological confusion between the concepts of brand, trademark, and brand name in some studies. Objectives The objective is to consider main problems concerning the definition of essence of a brand. Methods I have analyzed the most important methods of brand valuation in the Russian and foreign practice. Results I prove that the optimum methods of banking brand valuation are the income approach methods. Among them, I distinguish the method of analysis of brand strength and determinants of demand. The essence of the method consists in defining a brand index by ranking the determinants of demand for banking services and recording the extent of influence of a brand on these factors. Then the index is applied to various bases (revenue, profit, cash flows, etc.) to account for the value of the bank brand, and is discounted. Conclusions and Relevance I offer a unique view at the development of the banking brand valuation method, which allows considering its specific features.
Bovée C., Arens W. Sovremennaya reklama [Contemporary Advertizing]. Moscow, Dovgan' Publ., 1995, 704 p.
Belyaev M.S., Ermakov S.V. Bankovskoe regulirovanie v Rossii. Ot proshlogo k budushchemu [Bank regulation in Russia. From the past to the future]. Den'gi i kredit = Money and Credit, 2008, no. 11, pp. 4–10.
Vakhitova V. The Banker: Sberbank stal liderom po snizheniyu stoimosti bankovskogo brenda [The Banker: Sberbank became a leader in reducing the value of the banking brand]. Available at: Link. (In Russ.)
Valitov Sh.M., Kirichenko E.G. Konkurentsiya v bankovskom sektore Rossii [The competition in the banking sector of Russia]. Vedomosti, 2008, no. 24, pp. 2–9.
Voronin D.V. Razvitie bankovskogo sektora Rossii v pervom polugodii 2007 g [Development of the banking sector of Russia in the first half of 2007]. Bankovskoe delo = Banking, 2007, no. 10, pp. 14–18.
Denezhno-kreditnaya politika Banka Rossii: aktual'nye aspekty [Monetary policy of the Bank of Russia: actual aspects]. Den'gi i kredit = Money and Credit, 2008, no. 5, pp. 3–8.
Il'yasov S.M., Batsyna S.Yu., Tsapieva O.K. Bankovskie sistemy razvitykh stran i sovershenstvovanie denezhno-kreditnoi politiki Rossii [Banking systems of developed countries and improvement of the monetary policy of Russia]. Den'gi i kredit = Money and Credit, 2008, no. 7, pp. 35–38.
Ivashkovskaya I. Upravlenie stoimost'yu kompanii: vyzovy rossiiskomu menedzhmentu [Management of company value: challenges to Russian management]. Rossiiskii zhurnal menedzhmenta = Russian Management Journal, 2004, no. 4, pp. 113–132.
Kurakov L., Kurakov V., Timiryasov V. Sovremennye bankovskie sistemy [Modern banking systems]. Yekaterinburg, Nessi-Press Publ., 2008, 192 p.
Maslennikov V.V., Sokolov Yu.L. Natsional'naya bankovskaya sistema [National banking system]. Finansist = Financier, 2008, no. 12, pp. 3–9.
Parshukova Yu. Brend “Gazprom” podeshevel [The Gazprom brand fell in price]. Available at: Link. (In Russ.)
Samye dorogie rossiiskie brendy [The most expensive Russian brands]. Available at: Link. (In Russ.)
Smirnov E.E. Izmenenie zakonodatel'noi bazy finansovoi sfery v usloviyakh krizisa [Amendments to legal framework of the financial sphere under crisis]. Finansist = Financier, 2008, no. 9, pp. 7–8.
Aaker D.A. Building Strong Brand. The Free Press, 1996, 336 p.
Bedbury S., Stephen F. A New Brand World: 8 Principles for Achieving Brand Leadership in the 21st Century. NY, Viking Penguin, 2002, 240 p.
Farquhar P.H. Managing Brand Equity. Marketing Research, 1989, pp. 24–33.
Kapferer J.-N. The New Strategic Brand Management. London, Kogan Page, 2005, 560 p.
Keller K.L. Strategic Brand Management: Building, Measuring and Managing Brand Equity: Second Edition. NY, Prentice Hall, 2003, 336 p.
Koch R. The Financial Times Guide to Management and Finance. London, 1994, 236 p.
Srivastava R.K., Shocker A. Brand Equity: A Perspective on Its Meaning and Measurement. Marketing Science Institute Report, 1991, pp. 91–124.
