Source: Daniela Vogel¸ PKF Malta¸ May 2012
With our new webcast we would like to introduce the term brand and the significance of brand management.
The term brand management is an umbrella term for strategies that are necessary for a brand to find its optimal position in the market and to enforce this position permanently
How important are brands?
1. The term brand
2. Significance of brand management
3. Benefits of brands for consumers
4. Benefits of brands for companies
5. The best brands in 2012
1. The term brand
Brands are seen as the totality of perceptions and feelings consumers have towards any object that is identified by a brand name¸ including its identity (for example¸ the packaging and logo)¸ quality and performance¸ familiarity¸ trust¸ perceptions of feelings and values??¸ which symbolize the brand and ideas of the users. [1] A brand is always immaterial. [2]
2. Significance of brand management
The term brand management is an umbrella term for strategies that are necessary for a brand to find its optimal position in the market and to enforce this position permanently. [3]
Brands have an all-encompassing importance for decision making and are a key business success factor.
The strength of a brand is based on trust among consumers. Selection tests of homogeneous products indicate an added psychological benefit. Trademarks can attract customers and increase brand loyalty¸ therefore if the customer recognises its identity for a long time¸ it unconsciously influences the buying behavior of this customer. This together with an “added value” is reflected again in the willingness to buy.
The aim of brand management therefore is to increase the economic brand value. This value is often earned by the price premium that is paid by the customer for a ‘marked’ product compared to an ‘unmarked’ product. [2]
The success of brand management¸ however¸ depends on several factors: the predisposition of customers towards brands¸ own management skills¸ and the activities of competitors. [4]
3. Brands can give some additional benefits to buyers:
The reliability of brands is different in each sector. Brands increase the market transparency and provide product identification thus offering a guide in the selection of goods or services. Since a customer can rapidly choose which product to buy on the basis of the brand¸ the search and information costs are reduced. Markets often provide incomplete information therefore repurchasing a familiar brand offers a substantial simplification of the purchase decision if the customer was satisfied at the first time. Furthermore¸ a brand’s reputation and quality assurance is built on its competence and quality consistence. Brands are also a means for customers to communicate accomplished standards to others and to distinguish themselves from other people. [2]
4. What are the benefits of brands for providers?
Brands have a sales-promoting effect. A consequence of brand strength is a higher business value by improving the economic brand value. Brands can be the