Building Brands

Many firms focus considerable attention to building brands because brands are important to consumers and marketers.

The first step in brand building typically focuses on generating brand awareness.

Brand awareness is achieved when target consumers know about a brand and call it to mind when thinking about the product category. For example, Procter & Gamble has achieved brand awareness with Tide, which many consumers automatically recall when thinking about buying laundry detergent.

Brand awareness must then be translated into a brand image, or the impression that consumers have about the brand. Marketers should ensure that consumers have accurate ideas of the brand’s advantages and positive impressions of it. P&G is successful if consumers perceive that Tide gets clothes cleaner than do competitive brands. Consumer’s image of a brand should match the brand identity established by the company.

With a positive brand image established in their minds, some consumers will normally purchase Tide when shopping for laundry detergent. Such buyers exhibit brand loyalty. The most brand-loyal customers will select Tide on almost every purchasing opportunity.

The highest point of brand awareness, image, and loyalty is the development of brand equity, or the value that the brand has in the market place. Brand equity has a financial dimension, especially important in any merger or acquisition transaction. The financial value of P&G Tide would be significant in any discussion of an acquisition price, for instance.

Brand equity also affects marketing efforts. The same marketing strategy and level of expenditures used for different brands are likely to have different results, depending on brand equity. Typically, marketing efforts built on an established positive brand awareness, image, and loyalty-or high brand equity-are more successful.

The typical approach to building strong brands is to focus efforts on media advertising to generate brand awareness, to develop a desired brand image, and to get consumers to visit their sites. But it is only part of the brand building process. Research indicates that strong brands are built on the favorable experiences consumers have with a firm’s products and services. Effective advertising can only drive consumers to an Internet site or retail store or to try a product or service. Brand loyalty and brand equity depend on the experiences consumers have once at the Internet site, retail store, or when the product or service is purchased.

Comprehension questions:

1. Why are brands so important?

2. What is brand building focused on?

3. When is brand awareness achieved?

4. What is brand loyalty?

5. What is the typical approach to building strong brands?

Brand Values

Дата добавления: 2015-11-16