Objective 3

Some analysts see brands as the major enduring asset of a company. Brands are more than just names and symbols—they embody everything that the product or service means to consumers. Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or service. A brand with strong brand equity Is a very valuable asset.

In building brands, companies need to make decisions about brand positioning, brand name selection, brand sponsorship, and brand development. The most powerful brand positioning builds around strong consumer beliefs and values. Brand name selection involves finding the best brand name based on a careful review of product benefits, the target market, and proposed marketing strategies. A manufacturer has four brand sponsorship options: it can launch a manufacturer's brand (or national brand), sell to resellers who use a private brand, market licensed brands, or join forces with another company to cobrand a product. A company also has four choices when it comes to developing brands. It can introduce line extensions, brand extensions, multibrands, or new brands.

Companies must build and manage their brands carefully. The brand's positioning must be continuously communicated to consumers. Advertising can help. However, brands are not maintained by advertising but by the brand experience. Customers come to know a brand through a wide range of contacts and interactions. The company must put as much care into managing these touch points as it does into producing its ads. Thus, managing a company's brand assets can no longer be left only to brand managers. Some companies are now setting up brand asset management teams to manage their major brands. Finally, companies must periodically audit their brands' strengths and weaknesses. In some cases, brands may need to be repositioned because of changing customer preferences or new competitors.

Project Management Made Easy

Project Management Made Easy

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Responses

  • eija-riitt
    What are a company four choices when it comes to developing brands.?
    8 years ago

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