Essay on Building Strong Brands

2505 Words Feb 14th, 2011 11 Pages
Building Strong Brands

2010 – 2011

Contents

Brand Equity 3
Role of brands 3
The scope of branding 4
Building brand equity 5 Choosing brand elements 6 Branding Decision 7
Conclusions 9
References 10

Brand Equity

Perhaps the most distinctive skill of professional marketers is their ability to create, maintain, enhance and protect brands. Branding has become a marketing priority. Successful brands command a price premium and elicit much loyalty. New brands capture the imagination of consumers and the financial community alike. Marketers of successful twenty-first-century brands must excel at the strategic brand management process. Strategic brand management involves the design and implementation of marketing
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This value may be reflected in how consumers think, feel, and act with respect to the brand, as well as the prices, market share, and profitability that the brand commands for the firm. Brand equity is an important intangible asset that has psychological and financial value to the firm. Marketers and researchers use various perspectives to study brand equity. Customer-brand approaches view brand equity from the perspective of the costumer – either an individual or an organization. The premise of customer-based brand equity models is that the power of a brand lies in what customers have seen, read, heard, learned and felt about a brand over time. In other words, the power of a brand lies in the minds of existing or potential customers and what they have experienced directly and indirectly about the brand.

Customer-based brand equity can be defined as the differential effect that brand knowledge has on customer response to the marketing of the brand. A brand is said to have positive customer-based brand equity when consumers react more favorably to a product and the way it is marketed when the brand is identified as compared to when it is not. A brand is said to have negative customer-based brand equity if consumers react less favorably to marketing activity for the brand under the same circumstances. There are three key ingredients to this definition. First, brand equity arises from differences in consumer response. If no differences occur, then

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