Published on July 19, 2014
activity not only in the consumer-goods and services sectors but in non- consumer areas as well. Point 2 - The concept of a brand. There is no one accepted definition of a brand but a number of approaches or different perspectives can be identified. These bring us to a definition of ‘ a brand is a product or service made distinctive by its positioning relative to the competition, and by its personality in the context of the target market ’ (Hankinson and Cowking 1993). Point 3 - Why are brands so important? Strong brands help a company to maintain market share in the face of a changing competitive environment and it has been shown that a strong market share is associated with above-average profits. Brands have become assets in their own right. In addition, they represent low-risk opportunities for the manufacturer or service provider and they also represent reduced risk for the consumer. Point 4 - Brand loyalty. Brand loyalty refers to the inclination of a consumer to purchase a brand again and is usually measured in terms of repeat purchase. Consumers are said to be relatively loyal if they purchase the brand more frequently than a competitor ’ s. There are several layers of loyalty however, total loyalty to a brand is probably unachievable. Point 5 - The branding cycle. Brand building is a continuous cycle of research, planning and control. The branding cycle, if rigorously and continuously applied, should lead to the clear recognition by the consumer that the functional attributes and symbolic values of the brand, as communicated by the various elements of the marketing mix, continuously match their physical and psychological needs.