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The purpose of any business is
to meet customers' needs at a
profit, and one of the most important measures of success for a
company is the loyalty of its customers. Brands are valuable assets of
business and are also important to consumers. Brands can create wealth for the
company, depending on how much value they add to the consumers.
The American Marketing Association defines brand as: "A
name, term, sign, symbol, design, or a combination of them, intended to
identify the goods or services of one seller or group of sellers and to
differentiate them from those of
competitors." Branding starts with product
differentiation and, according to former Harvard Business School
professor, Theodore Levitt, differentiation is practiced by almost everyone
- manufacturers, dealers, retailers, brokers and agents; all try and
distinguish their products from those offered by their competitors. The
process of branding can be seen as a logical extension of the task of
differentiating the product and trying to position it in a unique way.
There are often many brands competing with each other and
aiming at acquiring a larger share of the same market. But some are close
to the hearts and minds of the customers, and some are not. Some
brands enjoy high recall value and positive perception compared to others. |
