BRAND EQUITY

Brand Equity

Brand Equity

Introduction

The paper aims to emphasize on the concept as well as process of branding. Moreover, the importance of brand equity for the companies in today's world is discussed in the paper. Furthermore, the paper explains the limitations of building brand equity by comparing the mindshare and cultural models. Brands are an essential aspect of today's marketplace. Everyone is surrounded by plenty of brands by a number of reputed companies in the form of different products such as consumer products, beverages, clothing stuff etc. A number of researches have identified that consumer perceptions and attitudes are determined collectively, and commonly described as consumer Brand Equity (Kornberger, 2010, pp. 205-235). It has a direct relationship to a brand's market position and business results. It is important to know about the brand, its market value and the ways to create and maintain its value.

Companies know that the market is competitive and that the brand name is the beginning of the personality for the attention of consumers. In consumer marketing, brand often provide the main points of differentiation between competitive offerings, and as such they can be significant to the success of the company (Murphy, 2002, pp. 1-12). Therefore, it is vital that the management of brands is carried out strategically. Companies see the brand name as a valuable strategy for success and growth. A strong and recognized brand allows the introduction of higher commodity prices. With proven products, which are related to the benefits, the consumer willing to pay more than decide to try out a new, unknown product. A strong brand can be extended to the new offer, which eliminates the risks associated with the adoption of the articles placed under a completely new brand. In this way, the company can increase the scope of its activities and enter new markets. In addition, with the brand increases the profit margin, or return on sales, and improve cash flow in the company (Willmott, 2003, pp. 362-369).

Background

The brand is the type of accounting intellectual assets that add value to the company. Because of their importance, they must be valued as other property of the company. There are many definitions of the brand. In the general sense it means the trade name placed on the articles of the company, which helps differentiate it from the competition (Riezebos, 2003, pp. 1-16). In legal terminology brand is treated as a legally protected symbol indicating the origin of the product and to protect them from imitation and counterfeiting. In marketing, a brand is the name, symbol, logo market distinctive products and a team of product characteristics associated with the image of the recipient of the benefits of its use (Winters, 1991, pp. 70-3).

The brand is the great heritage of the company, indicating the qualities of the product or services offered by this and this strengthens their image before the consumers. Its value is used as a strategy to differentiate it from competitor staying in the market and winning new ...