Brands and Branding

I believe that people easily overlook the amount of time and effort put into a companies name, logo, or brand; however, branding is one of the strongest manors to catch a consumers attention, maintain and develop customer value, and raise prices.  For me personally, although I am slightly embarrassed to say it, brands are an important factor when I purchase something.  I try my best to pick out brands that have backgrounds, histories, or qualities that represent my personality or characteristics.  The benefit to these companies is that they are able to raise the prices on their products with the knowledge that people desire their products. To exemplify the ability to raise prices here are some sample prices on True Religion Jeans (a product I will never buy). Screen Shot 2013-12-18 at 10.31.42 AM True Religion has aficionados who only buy these jeans in order to maintain a certain image in society.  Having a solid brand name may be the most important step in product and service decisions, in my opinion.

An interesting study is brought up in chapter 8 of Kotler and Armstongs’s Principles of Marketing explaining how a blind taste test was conducted with Coke and Pepsi resulting in balanced post-consumer behavior; however, when the brands were revealed 75% of the respondents preferred Coke.  It is said that seeing this familiar logo actually sparks activity in the brain that remembers the long-established brand imagery that represents Coca-Cola.  In conclusion, they stated “consumer preference isn’t based on taste alone… brand name appears to make a difference” (Kotler & Armstrong, 2012).

One of my favorite discoveries this semester was of this website. Screen Shot 2013-12-18 at 11.22.22 AM Interbrand is a company who looks beyond just the name of a brand by creating and managing brands as valuable business assets.  The idea is truly provoking to think that one is able to manage the title of something to manipulate its success rate financially.  The way I see this company and what it measures is that it measures the amount of value consumers hold for a given product.  With Apple at number 1 (Interbrand), I think it is easy to see this connection in the real world.  Apple has brand fanatics beyond belief; people wait in line every year despite weather conditions or even knowledge of what they are getting.  Click the apple to watch a video of people waiting in line.

Screen Shot 2013-12-18 at 11.38.36 AM

Having a trustworthy, powerful, and quality insuring brand name can make a business successful and maintain consumers interest by holding value with their personal beliefs.

References

Armstrong, G., & Kotler, P. (2013). Principles of marketing (15th ed.).
Upper Saddle River, NJ: Pearson Education.

Interbrand. (2013). Retrieved from
http://www.interbrand.com

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