Research Paper on "How Important Is the Brand Value for a Company"

Research Paper 6 pages (1737 words) Sources: 4

[EXCERPT] . . . .

Brand Value for a Company

In the modern day setting, economic agents face more and more threats as the levels of national and international competition intensify. In order to address this challenge, the organizations strive to strengthen their brand strategies in order to create more value for themselves.

In an effort to provide recommendations on how to best maintain the brand, the current project presents some notable do's and don'ts of brand management. The recommendations provided based on the research include the creation of points of difference, the conduction of market research and the promotion of the brand through the use of multiple media channels.

Throughout the past recent decade, marketing efforts have transformed from a sporadic activity into an ongoing business model. The business community is more and more dynamic and challenged by countless features. For instance, there is the intensifying competition as a result of globalization and market liberalization; this subsequently leads to an increase in the offer of products and services, and the growth of the expectations of the customers. Changes are also obvious at the level of the social environment, political, economic or technological, all which raise both new opportunities, as well as new challenges.

In this growingly complex setting, economic agents are forced to develop and implement numerous strategies which increase their chances of attaining their objectives. One specific example in this sense is represented by the consolidation of the brand in order to ensure customer loyalty, trust in the brand and revenues sustainability. In this line of thoughts, the current project sets out to explain the importance of the brand value, as well as reveal some of the do's and don'ts of brand value management. Several recommendations are also formulated.

2. Importance of brand value

A brand represents the image of the economic agent and directly influences the sales levels of the firm. The organizational objective in regard to the brand is that of enhancing its value in order to improve its position within the market. At a more specific level, the brand equity can be defined as "a set of associations that satisfies both the functional and emotional demands of target customers […]. The value of the brand provides important equity to manufacturers" (Glynn, 2009).

In other words, the brand of the firm represents an intangible asset which creates tangible benefits, materialized in sales levels. At the level of the literature, several definitions of brand value have been forwarded, yet a universally accepted definition has yet to be created.

"One definition states that brand value is a combination of brand assets and creditors that are connected to a brand, its name as well as icon and establish or in some cases decrease the value of a company. Another explanation says that the brand value is the added value of a functional product or service caused by the brand name. A further exemplary characterization claims that the brand value is the result of the past marketing measures linked to a brand and expressed by residual assets" (Weib, 2007).

All in all, the brand value of the firm is an essential dimension of the company's image, perception, operations and success. The means in which the economic agent manages and creates the brand value is a direct indicator of their success within the business sector. Given this importance of brand value, it is necessary for the firms to recognize the do's and don'ts of brand management; these are revealed in the section below.

3. Do's and don'ts of brand maintenance

As it can be deduced from the sections above, the management and maintenance of a brand value is essential to the overall success of the organization. Given this importance, it is now necessary to present those specific actions and decisions which should be associated with brand management in order to enhance its power, but also those which should be avoided as they have the potential to damage the firm.

In this specific order of ideas, the lines below reveal some of the most important do's of brand management and maintenance:

Do pay attention to the context. At this level, it is important for the economic agent to develop and promote their brand with consideration to the features revealed by the outside context, such as the demands and expectations of the market place, as well as the comparative strategies of the competitive agents.

Do apply the concept of less is more, as this normally applies and helps simplify the brand design, as well as increase its acceptation among the customer base.

Do emphasize on quality, and this is necessary to be revealed at the level of the quality of the products and/or services offered by the company, as well as the quality of the brand management effort (Branding Strategy Insider, 2009).

Do tailor the branding strategy to the feature of the audience.

Do listen to the input provided by the customers and the wider audience; this virtually means that the branding strategy should not be a strong push strategy, but more so focused on pull features which attract the prospective customers.

Do engage the audience, and as many audience members as possible (Jones, 2011).

In the context of brand management, a series of strategic efforts are revealed as necessary due to their potential to enhance the power of the brand and as such provide the necessary support for the economic agent to attain its overall objectives. Nevertheless, in this complex setting, there also exists the risk for the economic agent to become engaged in actions and activities which could create harm for the brand of the firm, as well as the overall organization. Some of the more notable examples in this sense include the following:

Do not be too obvious. At this specific level, it is important for the organization to recognize and eliminate any redundancies in its brand management in an effort to preserve the freshness of the brand and raise the interest of current and prospective consumers.

Do not change the name of the product to be sold or the company that produced it throughout the branding campaign. This creates a sense of uncertainty and confusion within the customer base and could even materialize in a change in the perception over the company.

Do not rely exclusively on the name and the strength of the brand. At this specific level, it is crucial to recognize that a product has to be successful on its own, and that the brand strategy would support it; if a product is unsuccessful and unable to serve customer needs, the brand strategy will be unable to ensure its success.

Do not neglect the sounds associated with the brand. In this order of ideas, it is necessary to recognize that the name of the product, brand and the company are spoken out loud in frequent situations, and it is important for the population to be able to pronounce and remember the name promoted by the brand (Branding Strategy Insider, 2009).

Do not use generic names to promote the quality of the products, such as "the best" or "superior" as these can be used by other companies to promote their own products (Knowles).

4. Recommendations for brand effectiveness

Based on the presentation of the do's and don't of brand management, as well as the conduction of additional research, several recommendations are formulated below to maximize the changes for a successful management of the brand. The first of these recommendations is represented by the need to conduct intense market research in order to identify the need for the product and the ability of the product to serve the respective need. Based on this analysis, the brand strategy would be focused on the benefits generated by the respective item for the consumers.

The second recommendation is represented by the suggestion to create points of difference in the branding campaign. At this specific level, it is important to note that all economic agents within the market will try to promote their product as "the best." The company must as such identify and/or create unique points that differentiate them from the competition and should promote them in the management of their brand.

Third, it is recommended for the economic agent, once they have developed a branding strategy in accordance with all necessary criteria, to promote it in a means which maximizes its chances of success. At this specific level, it is necessary for the economic agent to identify and address the adequate target market, but also to address the target market through the adequate media.

Furthermore, it is recommended for the organizations engaged in brand strengthening to implement their strategy through the simultaneous use of several media channels, such as television advertisements, radio announcements, street banners and fliers and the internet. At the level of the internet, emphasis ought to be placed on the maintenance of the organizational website, the creation and maintenance of a brand website, but also the promotion of the product, brand and company through the social media (Jones, 2011).

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