20-06-2013, 03:42 PM
Frequently Asked Questions Brand Management
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Why do we need brands?
1. Technology and performance are not a
differentiating platform.
2. The life cycles of products are getting
shorter.
3. The new consumer is smarter and more
aware about the commitment of brands.
4. Employees need to feel proud of their
workplace.
What is a Brand?
“A brand is a name, term, sign, symbol, or
design, or a combination of them, intended
to identify the goods and services of one
seller or group of sellers and to differentiate
them from those of competition” (AMA).
New Branding Challenges
• Brand management is as difficult as ever
– Savvy consumers
– Increased competition
– Decreased effectiveness of traditional
marketing tools and emergence of new
marketing tools
– Complex brand and product portfolios
Roles of Brands for Manufacturers
1. Consumers’ greater loyalty.
2. Lower sensitivity of the consumer towards
competitor's activity.
3. Ability to reduce damages in times of crisis.
4. Higher margins.
5. Low sensitivity of consumers to price increases.
6. Higher cooperation with marketing channel.
7. Greater effectiveness of marketing
communication.
8. Higher potential for brand extension.
9. Provides competitive advantage.
The Concept of Brand Equity
• The brand equity concept stresses the
importance of the brand in marketing
strategies.
• Brand equity is defined in terms of the
marketing effects uniquely attributable to the
brand.
– Brand equity relates to the fact that different
outcomes result in the marketing of a product or
service because of its brand name, as compared
to if the same product or service did not have that
name.