Last Updated on February 13, 2024 by Nasir Hanif
Louis Vuitton, Gucci, Chanel, Nike, Adidas, coke-cola all are famous brand names in today’s global market. Brand is not set up suddenly, but it is a perception formed from experiences and communication. Simultaneously, brands help distinguish products and services from other competitors and prompt the consumer to remember information related to the brand. A strong brand makes people more aware and engage in its brand image, more satisfied with brand product quality and willingness to pay a premium price for a strong brand. Therefore, organizations could earn more profit from a strong brand product, and also contain the customer and gain trust and loyalty from them.
Consumer’s perception for a brand is important for consumers to differentiate the brand product. For consumers, a brand is a symbol of high class; it is a signal of high quality and stands for high percentage of satisfaction. However, a brand has their own target audience and position in the market, which will promote different images for consumers to recognize different brands (Kotle et al, 2010). For example, if a consumer wants to choose a luxury, comfortable and safe car, consumers will prefer Mercedes-Benz to Toyota. Because of consumer’s perception, they know that Mercedes-Benz is a famous luxury car brand name and Toyota is a well-known common car brand name. Moreover, consumers’ perception is not only made up by the brand advertising or brand promotion, but also about learning from experiences when consumers use the brand products or heard the information from friends or family members. Learning from experience of using brand products is communicated to the brand, and then it would make consumers have a deep cognition and awareness of the brand. Therefore, the effect of perceived quality impacts brand equity indirectly through satisfaction is supported (Ha, 2010) and brand helps communicate the image of product and assists the differentiation of the product in the mind of consumers.Being laconic, it creates a buyer’s guide from which a new wish, dream, preference of the buyer can be formed.
Customers view a brand as an important part of the product or service. Once dominant only in the minds of consumers, brands are increasingly taking over the minds of all stakeholders. As this change occurs, brands are becoming the company’s most critical source of distinctiveness and value creation (Schultz, 2002). Therefore, a brand is an important asset of value to the organizations and it is a marketing strategy for organizations to charge higher prices, also it is a life-saving straw for organizations to survey in intense market competition.Many people do not feel and notice the hard work they do to reach the peak of brand reputation. They are creating different tools for their team members or using existing tools such as Trello or some of alternatives.
A successful brand has high brand equity. Brand equity is an intangible asset that depends on association made by the consumer. High brand equity can be used as a platform to launch related products and increase the consumer’s attitude toward the product associated with the brand. In addition, a brand with strong brand equity is a very valuable asset, it’s estimating the total financial value, customers’ perception and brand image of a brand. Good examples of organisations with strong brand equity is Microsoft, whose corporate logo is recognized worldwide and its brand value is estimated to be almost US$56.647 billion in 2009 (Interbrand Corporation, 2009) and it’s one of the highest brand value in 2009. This illustrates that the real value of a high brand equity is its captured consumer preference and building strong and profitable customer relationships by providing a high quality product and good performance to customers. Thus, profitable growth, value of a customer, the concept of managing brands as corporate assets, measurement of a brand loyalty, brand value and the building for long-term as their key to success.Every brand product has its responsibilities to be called a brand. For example, it is difficult to notice a brand organization that does not have its own delivery system ․Even if it does, it is never perfect, they always try to study the sphere to improve the delivery service.
Strong brand equity provides a company with many competitive advantages and helps organizations to facilitate a more predictable income stream. A powerful and famous brand always acquaints itself with different classes of people in the society, especially enjoying a high level of consumer awareness and loyalty. In order to capture consumer loyalty for a brand, organizations launch lines and brand extensions to attract consumers. Such as Coca-Cola, one of the main rivals is Pepsi, another larger soft drink corporation in the global market. In order to retain its owner consumers and stabilize its earning from product, Coca-Cola uses its well-known brand to introduce new varieties such as Vanilla Coke, Lemon Coke, Zero Coke to defend against fierce brand, price and quality competition. Furthermore, brand extensions not only obtain more consumers’ awareness and attraction, but also assist organizations to increase their profit. Because launching new products and services under (or linked to) an existing brand, if done properly, significantly decreases perceived customer risk and increases product/service acceptance, all at a fraction of the cost that it would have taken to launch a new brand ( Alba, 1994). At the same time, extending the brand’s reach and relevance to new consumers is also more profitable for an organization. Therefore, high brand equity can more easily face its competitor in the market by launching line and brand extension, also the organizations can gain more profit and consumers from developing new products.Brand is everywhere ! For example when you want to find a tutor in a teaching platform for learning “How to knit a scarf” , you decide to learn and investigate not with a person who has low reviews but also with the highest ranking teacher in that platform , shortly, with the “branded teacher”.
Final Thoughts
With so many businesses in the world, it’s getting difficult to stand out. If you’re overlooking the need to define your brand, you are making a big mistake. This is because branding is crucial for businesses of all sizes, whether big or small. Every business is a brand in itself, it only depends on how it’s being managed by the business owners.
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