It is axiomatic that a successful brand should command a premium price in the marketplace. Customers willingly pay such premiums because the brand offers higher quality, more innovation, greater trustworthiness (and associated reduction in risk), or more personal relevance, among other things. While this is true and justifies investment in brand building, it misses an important strategic advantage of successful brand building.
Everyone knows what a brand is, and few consumers do not have a few favorite brands for which they will pay a premium price or exert extraordinary effort to obtain. Consumers routinely talk about “loving” a brand or feeling incomplete without a specific brand. Such comments reflect more than just familiarity or loyalty; they suggest a deep emotional attachment. Despite such common experiences, the process of creating a strong brand remains mysterious and the value...
The recent criticism of the new identity for Jaguar has focused attention on when repositioning of a brand is necessary and effective. The positioning of a brand is defined by the psychological space the brand occupies in the minds of consumers: the unique identity of the brand in terms of what it is (and is not), what value it provides, and how it differs from competitors.
An influential stream of thought in marketing is that all products have elements of service products and that thinking about even tangible products as service offerings can promote creative new thinking. This is not such an odd notion upon reflection. The can of beans that is served at the family dinner is a tangible product, but it also includes and replaces some service activities. Harvesting, preparation and canning are all service activities contained in the...
Strong brands produce significant, sustainable value for the firm. There is no real debate about this fact. The value of a brand can also be readily measured: it is the price premium the brand commands relative to a comparable unbranded product. And, unlike other easily imitated product or service differences, like quality and price, a brand is unique to the firm that offers it. Thus, it is not surprising that Boards and CEO’s seek to...
