Brands Are Machines for Delivering Quality Earnings at High Margins
"Brands are machines for delivering quality earnings at high margins" Tim Broadbent. 'Advertising Works 2000'.
Although brands do not solely refer to businesses and their products or services (e.g. charities, countries, celebrities), this essay will discuss their relevance to profits with regards to business operations unless specified. Where most companies must at some point make a decision (consciously or unconsciously) whether to brand their company or not, that question is often rhetorical. Brands are established whether the marketing manager says they should or not. The decision really is whether to implement conscious brand management within the business or not. That is the difference between a strong brands and weak brands. Where weak brands often let its customers ultimately make their own minds up about the brand, and the values and associations of the brand are derived from its way of doing business and the way it carries itself in the world, branded businesses go in the opposite direction. Strongly branded companies can manipulate their customers into feeling and associating certain things with their brand; giving it a personality, a purpose, values and its own identity. Effectively branding a company can be huge expensive and for that reason is done best by larger companies who have capital at their disposal.
Branding is all about creating extra perceived value for a company over other similar companies in the market place. This extra perceived value can be known as brand equity and can be a major competitive advantage to companies. Brand Equity has the potential to have major effect on bottom line results. Brand equity is defined as A brand's power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume and higher profit margins against competing brands.
It is the remaining value placed on a product, service or company when you remove all of the tangible assets and are left only with
Although brands do not solely refer to businesses and their products or services (e.g. charities, countries, celebrities), this essay will discuss their relevance to profits with regards to business operations unless specified. Where most companies must at some point make a decision (consciously or unconsciously) whether to brand their company or not, that question is often rhetorical. Brands are established whether the marketing manager says they should or not. The decision really is whether to implement conscious brand management within the business or not. That is the difference between a strong brands and weak brands. Where weak brands often let its customers ultimately make their own minds up about the brand, and the values and associations of the brand are derived from its way of doing business and the way it carries itself in the world, branded businesses go in the opposite direction. Strongly branded companies can manipulate their customers into feeling and associating certain things with their brand; giving it a personality, a purpose, values and its own identity. Effectively branding a company can be huge expensive and for that reason is done best by larger companies who have capital at their disposal.
Branding is all about creating extra perceived value for a company over other similar companies in the market place. This extra perceived value can be known as brand equity and can be a major competitive advantage to companies. Brand Equity has the potential to have major effect on bottom line results. Brand equity is defined as A brand's power derived from the goodwill and name recognition that it has earned over time, which translates into higher sales volume and higher profit margins against competing brands.
It is the remaining value placed on a product, service or company when you remove all of the tangible assets and are left only with
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