Originally posted by alexkusu:
hmm...that can come later.
Lets discuss brands.
Issues of brand equity and marketing relevance?
erm this is a bit late.. i forgot abt this thread.. my bad
anyway;
branding is abt using the marketing mix to create a differential position in the market. A brand is also able to strengthen or weaken the impact of the marketing mix. therefore it has a cyclic effect. always remember that a brand is also intangible.
Brand equity is slightly different. u can summarise it as the net present value of the future cash flows attributed to the brand. i like this definition the best. To determine the value u have to evaluate the incremental value as per se an unbranded product.
Brands can create value for customers by helping them reduce risk esp. when the product requires the customer to make complex decision. in a sense bounded rationality comes into play and branding mitigates this issue.
moving on to brand image: this is the set of beliefs abt a brand's attributes and association.
What can a brand do besides the above mentioned?
brands can increase cash flow (brands enables companies to obtain higher prices and higher volumes)
brands can accelerate cash flow: it is empirically proven that customers respond quicker to marketing campaigns with brands that they r familiar with and like.
brands can sustain cash flow and increase residual value (leading brands have lengevity and this enhances the sustainibility of the company.
Lastly brands reduces the cost of capital (the risk attached to cash flow is reduced and therefore decrease the CoC)
hope i'm not too late
