Branding is a critical source of competitive advantage for firms. It is one of the only sources of sustainable competitive advantage, because your competitors can never duplicate your brand. This paper will explore the value of branding, to highlight the ways that a company can create, reinforce and leverage its brand to enhance corporate value. The message is repeated in all media, both advertising and in public relations communications, and through these repetitions an association is created between the brand and the attributes (de Chernatony, 2010). If the company wants to amplify the reinforcement, it can do so with added advertising expenditure -- some companies advertise extensively even though they are household names, just to reinforce the messages that they have built up over the years.
Nature of Branding
A brand is a significant source of differentiation between products, and in many cases it is the primary source of differentiation. The brand is the name and marque of the product or company, and the value of a brand lies in its ability to communicate in shorthand a set of attributes to the audience (Wood, 2000). The more strongly the attributes are associated with the brand, the more effective the brand is.
Companies create their brands in order to convince consumers that these attributes are valid. Sometimes the attributes are related to the product, and other times they are not, but they are the attributes that the company wants to associate with the brand. The ultimate objective is to create widespread recognition of the brand among consumers, and immediate recall and agreement that the brand does represent the desired attributes. If the consumer shows interest in acquiring goods or services of that brand because of favorable views of those attributes, all the better.
A key factor in brand reinforcement is that the brand message needs to be consistent over time, because inconsistency will reduce the degree to which the consumer associates the brand with certain attributes. It is also worth considering that the brand can be marketed to different audiences. To do so will allow for an expansion of the audience of the message. If the message becomes embedded in society, then people will spread that message on their own, so that a brand can become known and associated with specific attributes even without the need for advertising.
It is also important that the company defends against threats to the…
The message is repeated in all media, both advertising and in public relations communications, and through these repetitions an association is created between the brand and the attributes (de Chernatony, 2010). If the company wants to amplify the reinforcement, it can do so with added advertising expenditure -- some companies advertise extensively even though they are household names, just to reinforce the messages that they have built up over the years.
Branding A new entrant in the financial services industry will want to have a strong brand. In this industry, branding is absolutely critical for several reasons. First, many of the firms that are currently in that market have brands that go back 100 years or more and are essentially household names. It can be difficult to counter that brand power. Second, financial services businesses need to engender trust in their market.
Branded or Private Label Manufacturer Branded vs. Private Label Manufacturer When creating a new company, one of the most important decisions one can make is whether to market products under a private label or become a branded manufacturer. If one sells as a private label retailer, his or her company would be making the product and selling directly to consumers under the company's own label (Vakratsas & Ambler, 1999). A branded manufacturer
This stage provides comprehensive information for use in marketing and promotional plans. Dave (2002), puts it that "The Brand Equity measure summarizes consumer perceptions on five dimensions: Familiarity, Uniqueness, Relevance, Popularity, and Quality." From this, it is apparent that the promotion point and reputation of any company and products is hinged on the brand equity. Why companies fail in brand equity All it takes to shrink a brand in today's hyper-linked global
An informed choice is a way of strengthening the customer loyalty. At the same time, the client will also feel privileged, as the marketing and advertising campaigns are usually centered on the client. Such an approach will make him feel privileged and central to the policies of the company. This is why issues like a large marketing budget will likely 'make' and consolidate customer loyalty. Such a budget will allow
Building a Brand: Case Study The difference between creating and developing a brand in a business to business context is dramatically different than building one in that is strictly in the consumer market. The key difference in this type of business revolves around the distinction in the type of audience one is trying to communicate with. With consumers, one is trying to grab their attention and distinguish oneself from one's competitors.
Despite the fact that the balance seems to lean in favor of the more modern approach, the final decision must also consider the relationship of these types of techniques to niche markets. A successful campaign for a niche market must consist of several strategies that combine each other in order to minimize risks and maximize the chances of gains. Jean Marie Caragher (2008) believes that an adequately developed niche marketing