Branding Some analysts see Brands as the major

Transcript:Branding Some analysts see Brands as the major:
Branding Some analysts see Brands as the major enduring asset of a company, outlasting specific products and facilities Brands are powerful assets that must be carefully managed and developed They are more than just names or symbols. They are a key element in the company’s relationship with the consumer The real value of a strong Brand is its power to capture consumer preference and loyalty. - Kotler There are a number of interpretations of the term brand (De Chernatony 2003). They are summarized as follows: A brand is simply a logo e.g. McDonald's Golden Arches. A brand is a legal instrument, existing in a similar way to a patent or copyright. A brand is a company e.g. Coca-Cola. A brand is shorthand - not as straightforward. Here a brand that is perceived as having benefits in the mind of the consumer is recognised and acts as a shortcut to circumvent large chunks of information. So when searching for a product or service in less familiar surroundings you will conduct an information search. A recognised brand will help you reach a decision more conveniently. A brand is a risk reducer. The brand reassures you when in unfamiliar territory. A brand is positioning. It is situated in relation to other brands in the mind of the consumer as better, worse, quicker, slower, etc. A brand is a personality, beyond function e.g. Apple's iPod versus just any MP3 player. A brand is a cluster of values e.g. Google is reliable, ethical, invaluable, innovative and so on. A brand is a vision. Here managers aspire to see a brand with a cluster of values. In this context vision is similar to goal or mission. A brand is added value, where the consumer sees value in a brand over and above its competition e.g. Audi over Volkswagen, and Volkswagen over Skoda - despite similarities. Brand Equity A powerful Brand has high Brand equity This is the positive differential effect that knowing the brand name has on customer response to the product or service One way of measuring equity is the extent to which customers are willing to pay more for the Brand There is significant competitive advantage with high brand equity; enjoy a high level of consumer awareness, loyalty, more leverage in bargaining with resellers, easier to launch line extensions, strong and profitable customer relationships Brand valuation The process of estimating the total financial value