Explain why it is important for marketers to understand the concept of branding.
Explain why it is important for marketers to understand the concept of branding. Discuss in detail concepts branding, brand positioning and brand equity and explain some brand strategies such as brand extension or brand stretching.
Introduction. It is imperative for marketers to understand the concept of branding as it is the process which will identify and differentiate a company 's product or service from the competition (Jobber, 2010). In our developed economy the competition and the offer is so intense that it is fundamental to build a close relationship with both consumers and customers. That is what a brand does. Jobber (2010) defines a brand as “a distinctive product offering created by the use of a name, symbol, design, packaging, or some combination of these intended to differentiate it from the competitors”. Brands affect consumer 's perceptions and preferences, a brand is a quality certification and it creates trust and loyalty. Trough this essay we will explore why brand is important for marketers but also why it is important for consumers, we will then take in consideration the components of a strong brand and how to assess it. Finally we will have a look at the brand stretching strategy and its benefits and disadvantages . This essay will draw upon example from the soda market.
Content. The American Marketing Association (AMA) defines a brand as ' 'name, team, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of seller and to differentiate them from the other sellers ' '. Firstly, brands are now recognised as a key asset for a company and having a strong brand will ultimately add value to it by giving a platform on which to build a reputation. For example, the stock market value of the Coca-Cola company was around $136 billion in the beginning of 2008 and by the end of the year, in spite of the global financial crisis, it remained close to 140 billion while the net
Introduction. It is imperative for marketers to understand the concept of branding as it is the process which will identify and differentiate a company 's product or service from the competition (Jobber, 2010). In our developed economy the competition and the offer is so intense that it is fundamental to build a close relationship with both consumers and customers. That is what a brand does. Jobber (2010) defines a brand as “a distinctive product offering created by the use of a name, symbol, design, packaging, or some combination of these intended to differentiate it from the competitors”. Brands affect consumer 's perceptions and preferences, a brand is a quality certification and it creates trust and loyalty. Trough this essay we will explore why brand is important for marketers but also why it is important for consumers, we will then take in consideration the components of a strong brand and how to assess it. Finally we will have a look at the brand stretching strategy and its benefits and disadvantages . This essay will draw upon example from the soda market.
Content. The American Marketing Association (AMA) defines a brand as ' 'name, team, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of seller and to differentiate them from the other sellers ' '. Firstly, brands are now recognised as a key asset for a company and having a strong brand will ultimately add value to it by giving a platform on which to build a reputation. For example, the stock market value of the Coca-Cola company was around $136 billion in the beginning of 2008 and by the end of the year, in spite of the global financial crisis, it remained close to 140 billion while the net
References: -Company, 20 october 2012, www.redbull.com/cs/satellite/en-Intcompany/001242939605518 -David Jobber, 2010, Principles and Practice of Marketing, sixth edition, New York, Mr Graw-Hill Education Ltd. -Kevin Lane Keller, 1993, Measuring and managing customer-based brand equity, Journal of Marketing, Vol.57, No 01, pp. 1-22. -Leslie de Chernatony, 2009, Towards the holy grail od defining 'brand ' , Marketing Theory.