Sunday, March 3, 2019
Advantages of Brands
A strong dishonor offers m all advantages for marketplaceers including disfigurements provide multiple afferent stimuli to enhance customer recognition. For example, a home run drop be visually recognizable from its packaging, logo, shape, etc. It can also be recognizable via sound, such(prenominal)(prenominal) as hearing the name on a radio publicizing or talking with approximatelyone who mentions the product. Customers who are frequent and enthusiastic purchasers of a particular deformity are likely to become defacement Loyal.Cultivating brand loyalty among customers is the ultimate reward for successful marketers since these customers are far slight likely to be enticed to switch to other brands compared to non-loyal customers. Well-developed and promoted brands make product pose efforts more effective. The result is that upon exposure to a brand (e. g. , hearing it, seeing it) customers conjure up mental images or feelings of the benefits they receive from using that brand. The return is even better.When customers associate benefits with a particular brand, the brand may consider attained a significant competitive advantage. In these situations the customer who recognizes he needs a solution to a line of work (e. g. , needs to decolorize clothes) may automatically think of one brand that offers the solution to the problem (e. g. , Clorox). This benefit = brand association provides a significant advantage for the brand that the customer associates with the benefit sought. Firms that establish a successful brand can extend the brand by adding new products under the same family brand. such branding may allow companies to introduce new products more tardily since the brand is already recognized within the market. Strong brands can three to financial advantages through the concept of home run Equity in which the brand itself becomes valuable. Such gains can be realized through the out-right sale of a brand or through licensing arrangements. F or example, union A may contrive a well-recognized brand (Brand X) within a market but for some reason they are looking to cut down their efforts in other markets. confederation B is looking to enter the same market as Brand X. If circumstances are right Company A could sell to Company B the rights to use the Brand X name without selling any other part of the company. That is, Company A simply sells the legal rights to the Brand X name but retains all other parts of Brand X, such as the production facilities and employees. In cases of well developed brands such a transaction may carry a very turgid price tag. Thus, through strong branding efforts Company A achieves a large financial gain by simply signing everywhere the rights to the name.But why would Company B seek to purchase a brand for such a high price tag? Because by buying the brand Company B has already achieved an important marketing goal building awareness within the target market. The fact the market is already be familiar with the brand allows the Company B to concentrate on other marketing decisions. We provide more detail on branding in the Managing Products tutorial with a special emphasis on the strategies marketers follow in order to build a strong brand.