When investing in new projects, Michael T Haas looks at a number of things.
Marketing experts make their living by developing and creating products, prices, and promotions. They also do a lot of work to identify the right markets and right places to be, both literally and figuratively. Marketers that work for big companies continuously change these variables to build market presence, increasing the volume of sales and market share.
When you are doing due diligence on a company and are trying to assign value, it may be very hard to analyze all the different things that a company does about its marketing. There are two things that you can take a look at that will tell you a lot about a business.
The first one is its financial data. If marketing is working, the numbers will show it. The second criterion is the power of its brand. Most great brands are easily identifiable. They also stand for something. No brand is built overnight. A great brand requires a sequence of correct marketing decisions, a great product, and great presentation.
There are a lot of books on brands, brand development, psychology, names, and even fonts and colors of brand logos.
When evaluating a brand, you first want to pay attention to its image. Brand image is what the public thinks about the brand and how it perceives the brand. Product quality is usually a part of a brand image. Great brands are associated with general ideas and images. For example, Harley-Davidson is associated with unrefined individualism, Wrangler with classic jeans, Starbucks with people communicating and having a great time.
Even if you use expensive market research, evaluating a brand may be very difficult. This is why investors like Michael T Haas often rely on their observations and experience when making a decision about a particular company.