What is brand?
According to Farquhar (1989, p. 24) brand is the bridge between value of product and the association of customers. In another words, brands is used as a tool of strategy which linked products though the name, symbol or colours (Schmitt, 1999, p. 57). Generously brands equal to identification. Firms always obtain excellent reputation and the association of good quality of items from the brand. Brands also assist to enhance and improve competitive advantages over competitors.
Brands benefits both firms and customers. First brands help consumers distinguish company ownership, easily make decisions and big brands serviced the status in the Society. Second brands contribute to companies establish reputation which induce the loyalty of buyer, though the extra good service and good quality allow companies add premium prices and it also cloud regards as an efficient tool developing new products. For example of luxury brand Dior. Dior is efficient achieve width of developing products. Dior targets at multiple products contains perfume, cosmetics, clothes, bags and watches. When people heard of the name of Dior trigger the image of good quality of items and making people feel fashion and high status in society. As a consequence people are willing to pay the high price to gain high quality and good services. Which made very successful association from consumers.
Built and manage brand
However, built and manage brand equity is not easy. Farquhar suggested there are three elements suggested by for Building a strong brand are as the following:
- A positive brand evaluation. (e.g. IKEA related to cheap and convenient furniture evaluated by customers )
- An easy way to let people generate awareness. (e.g. slogan of advertisement state is easily memory or link to product)
- The consistency of brand. (e.g. many products always update the cover of package).
Manage brand equity first should built a brand with good quality, which enhance positive evaluation generates and related to good product image. Second making easy ways for remembering and next following step is that increasing brand equity by inducing consumers’ behavioral experiences to reach the goal of promoting sale volume. Third launching new products with exist brands, which achieve the purpose of brand extension. (Farquhar 1989, p. 32)
Here is very good video to learn how to build a strong brand.
Maintaining quality of products and continuing creating ideas of delivering brands of items could not secure brand flourishing all the time even though some big brands. In recent days the bad news of dick smith had announced went bankrupt and many big car brand had been acquired.
Strategy against recession
Business environment is changing all the time. Since the recession of global economy, some marketers had operate relevant leverages to fight recession.
Luxury brands are as the example. They divided people into three main segments are “absolute consumers”, “trigger consumers” and “bandwagon consumers”. First group of people who are real rich and buying luxury is their lifestyle. Second is the group which educated by professional and need to be respect by buying the high-end products and the last is that segment of customer who are admire the lifestyle of the rich and peruse trend of fashion. (Choi, 2009, p. 108)
Marketers utilising super high-quality and super high-end products to maintain the absolute consumers and enhance brand loyalty. At the same time, they focusing on the differentiation to service the small group of people. In addition, continuing creating accessibility to keep reputation is another essential strategy. (Choi, 2009, p. 109-110)
Thus, brand is one of key parts of both existing products and new products.
Schmitt, B., 1999. Experiential marketing. Journal of marketing management, 15(1-3), pp.53-67.
Choi, S.H., 2009. Global luxury brands’ strategies to fight recession. SERI Quarterly, 2(4), p.108.
Farquhar, P.H., 1989. Managing brand equity. Marketing research, 1(3).
by XIN FU