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Why do people trust some names such as, Sony and Coca-Cola? Do these products have more features over other products? (3:66). Brands are names which give products their power. That power can make a positive image in the mind of the consumer that's why branding is the first job that marketers consider. A brand is a mixture of feelings that goes into both directions from the brand to the consumer and the other way around. These feeling are which give brands their confidence and value (8:50).
Brands come with different shapes and styles. A brand can be presented as a product (e.g., Coca-Cola), a service provider (e.g., KLM), a retail store (e.g., Safeway), an organization (e.g., UN), or a famous person (e.g., Ronaldo) (3:66).
A brand in general is a name and we can consider that every brand is a product, but not the other way around, which means that not every product is a brand (8:50). However, a brand is not only a name it represents the character, personality, and the company that produces products or provides a service (3:66). A brand is a set of things that are not physical and can be touched. Brands are things that distinguish a product from others (8:50)
Product through mail or by the Internet (7:52). What makes you be sure that they want take your money and ignore you.
There are brands so powerful that they are known by there initials (the first letter of each word in the name), (e.g., CNN, BMW, and ITT) (7:50-51). Other brands are paid more than they originally worth just to be acquired (5:2-3). The power of brands can not be ignored because it is like engines that make cars move.
The power of brands can also be recognized in places that is crowded with similar products. The strongest brand will be distinguished easily (2:24A). Finally, brands are a very strong tool in the hands of marketers if they use them well (7:50). Brands have the ability to make a positive image in the mind of the consumer.
When a company has a decrease in sales the first thing that marketers consider is the brand. They try to prevent their brand from being coated with dust, they want it to be always clear.
Creating loyal consumers who will still use your product even if there were a better existing product in the market, is one thing that marketers believe in to increase their brand value (7:51). Light says that a brand is promise to the customer (6:3). Branding is one way that makes the process of decision-making easier, that is by helping consumers to limit their choice (6:3). There are thousands of brands in almost each industry, so there must be something that makes it easier to choose between the over loaded shelves.
For marketers there are three important things that must be considered in a brand to have a good value in an over-stored market. First, it must be about something that the consumer cares about.
Second, it must be distinctive and specific separating the product or service from the rest of the market. Finally, it must be trustworthy (can be trusted) (3:67).
In some cases, brands can be the company's most expensive asset. In Coca-Cola's 1995 annual report they reported: "If our company burned to the ground, we would have no trouble borrowing the money to rebuild, based on the strength of our trademarks (brands) alone (3:67). Table1 shows some of the world's most valuable brands.
In1995, Financial World magazine reported that Coca-Cola's brand had an estimated value of $39 billion. The Marlboro name was set at $38.7 billion, Microsoft was worth $11.7 billion. IBM had an estimated value of $7.1 billion. Finally, Intel was set at $9.7 billion (6:1). These were some examples that shows how can brands be valuable assets, sometimes even worth more than all other assets that the company own combined.
Brand equity is a recognized base value apart from product sales revenues, which Almquist said about it the following: "Companies do not own the customer's mind. Companies can only indirectly manage that brand equity." (6:6). What does he mean by saying, "Companies can indirectly manage that brand equity"? Managing that brand equity can be by doing market researches and perform other marketing activities.
Nowadays a lot of new products are being introduced into the market. Big proportions of these products are line extensions from a parent product (4:12).
There are reasons that makes marketers consider brand extension, one of them is to reach a new market, another is producing new products that have a big share of the market in that period of time (1:1).
Marketers have to be careful when making an extension, because there is no role that can assure them that it will be a successful extension.
There are steps in brand extension. First, the extension mus
Quotes talked about in this paper
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Television talked about in this research material
Names talked about in this research material
B. Brand, David Ricardo, Adam Smith, Generic Kellogg, Almquist,
Organizations talked about in this research material
UN, Financial World,
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Companies talked about in this report
Coca-Cola, Sony, Intel, IBM, Microsoft, Associated, BMW,
Keywords referenced in this report
brand, a brand, market, marketers, company, brand equity, brand extension, market segments, comparative advantage, image, assets, consumer, Coca Cola, opportunity cost, BRAND MANAGEMENT, Brand Loyalty, free market economy, sales, competition, the market, market forces, good value, manage, Product Cycle, David Ricardo, theory, first thing, competitive advantage, diminishing returns, Coco Pops, government intervention, annual report, Corn Pops, lower risk, important things, Adam Smith, goods and services, service provider, World magazine, developing country, Financial World, Company image, parent, customer, strategies, shows, the first letter, prices, marketing, industry,