Brand Positioning

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Innovations, trends and fads all create, shape, and add value to a brand. Building a strong brand takes time commitment and hard work. The identity of the brand, from the perspective of the consumers, is the foundation of a good brand-building program. Effective brand management that encompasses brand personality is of major importance in reaching the company goals of satisfaction, loyalty and profitability. Building a powerful brand requires determining the substantial characteristics of the offerings that carry the brand name and the psychological or emotional benefits the customers receives from a company’s products. This can be described, as what “value” means to a typical loyal customer; and what, ultimately, is the essential nature and character of the brand over time.


A brand is a name or a symbol that is used to identify the source of a product. When a business develops a new product, branding is an extremely important decision. The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. Consumer based equity focused on the consumer’s attitude strength toward the product associated with the brand. A consumer’s awareness and associations lead to perceived quality, inferred attributes and eventually- the desired out come- brand loyalty. It is important to make the band easy to remember. The consumer should easily remember their positive evaluation of a brand. “ Brand power to influence buyers relies on representations and relationships.” (Kapferer, 2004) Brand equity is the direct relationship between the customer and the brand. A representation is the mental association a brand has on a customer. A brand creates value and influences consumers buying habits. To create brand equity the brand must focus on a specific audience in order to directly connect the product to the consumer.


“Defining the market is a key strategic task.”(Miller 2004) When creating a strong brand a company must specifically look to their target market. A market can be segmented by location, demographics, consumer behavior, or psychological and emotional characteristics. By using market segmentation, companies can focus on the direct needs and desires of their designated audience. According to Robert Kaplan, Harvard Business school professor, the customer is now at the beginning of the value chain. (Kaplan 2008) Companies are now focusing specifically on growing trends in the market, established by consumers.


Gaining market share and holding on to it is the reason for branding. “There is direct link between market share and profitability.”(Miller, 2004) Market share is the most important metric that marketers can use in order to judge the effectiveness of marketing campaigns. This includes branding initiatives, advertising campaigns and other revenue generation effort. However to define market share, a company must first define their market, as discussed before. A defined market enables a brand to distinctively target which market they wish to enter. Companies with the strongest brands tend to have the highest level of market share. Market share is important because firstly, it gives you a clear picture of a businesses performance, illustrating the precise areas and time periods where a company has performed its best. Using this type of information, a business can identify strengths and weaknesses, ultimately improving the balance of the business. Secondly, it can be used as a powerful sales tool. A strong brand is a company’s selling point. In 1989 Intel was entering the home computer market with a new type of product. At this time computers were viewed by consumers as all being similar, no one knew the difference in technology. Intel had to set itself apart from all other computer innovative companies. They then decided to clearly market directly to the...
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