If you’re just joining us, we’re having a fascinating discussion about the future of marketing in light of significant changes in the business environment. We’re discussing Victor Cook’s new book, Competing for Customers and Capital. If you want to get up to speed, hop over to the Book Discussion page to get started.
Okay, let’s move on to the second bullet point in this discussion. I’d like to propose some questions for Vic (and Jonathan, I hope you don’t mind being brought in on this one).
First, I think some of those who have read your posts and reviewed Vic’s narrated power point are a little bewildered. On the one hand Vic says in the power point presentation that intangibles are like "clouds in the sky," which makes them difficult to measure, at best. On the other hand you both reported in your last posts the percentage of market value accounted for by intangibles. How did you move from the clouds in the sky to percent of intangible value? Can anyone apply your methods? Please give us some examples of where you got the data and how you used it to come up with these results.
Second, you both provide a list of the types of intangible value. Vic, on page 16 of your book you say intangibles are created from the following list of "assets," and point out they don’t actually appear on the company balance sheet:
talent-based organizational related
In his post yesterday Jonathan said they are:
Looks to me like you guys agree on the framework to describe these "assets." This is a good start. Now, can you give us some idea how to measure the costs of those "assets"? And maybe say something about why they don’t show up on the balance sheet?