Keller’s model serves as guidelines for creating a strong brand image by SMEs by following some key points:
- concentration on building between one and two strong brands
- develop a source for brand equity that …show more content…
His last aspect of the funnel model argues that marketing creativity and the budget limitations strongly affect the marketing and brand communication. The SMEs’ designated goals for their marketing programs and communication channels are two-fold: not only that they wish to generate brand recognition, but they also want to generate income, therefore this means that they need to concentrate on sales channels as well.
However, even though the above mentioned guidelines are already very comprehensive, SME companies still encounter barriers in their branding programs. The barriers usually refer to financial and human resource limitations, as well as time limitation and lack of knowledge. Not having enough resources force the companies to concentrate on daily transactions or selling approaches rather than on a marketing or branding approach. Therefore, by setting sales as a short-term objective, it will later turn into an obstacle to build a longer-term branding strategy.
3.5.1 Brand management …show more content…
Price competition has always had the same central role, since the price and costs are a key factor for building a competitive advantage of a company. Therefore, if the price competition represents the central role, then it is strongly influenced by strong retailers and customers. Moreover, price can be highly reduced by power growth and by overcapacity that are usually caused by new players in the market or by old competition that is thriving to hang on or exit the market (bankruptcy). If building a strong brand image generates added-value to the products or services, then marketing, sales and advertising human resources are also part of the final cost, and a factor of increasing the price pressure. Therefore, if promoting the sales may be a driver and indicator of performance, the key factor of success is the low cost, meaning that the company must decrease de overhead and must cut all the unnecessary costs with not needed personnel and expenditures. In short, branding activities are highly vulnerable to costs, whereas brand building requires a high margin that will only return on the long