Role of Leadership in Knowing Employees
Employees are the backbone of an organization who play a crucial role in its success and failure. Employees need to feel comfortable at workplace and work should never be a mere source of burden for them. Employees ought to be valued if you want them to deliver their level best. They need to be appreciated […]
Capitalization in Finance
What is Capitalization Capitalization comprises of share capital, debentures, loans, free reserves,etc. Capitalization represents permanent investment in companies excluding long-term loans. Capitalization can be distinguished from capital structure. Capital structure is a broad term and it deals with qualitative aspect of finance. While capitalization is a narrow term and it deals with the quantitative aspect. […]
Why Pension Funds Should Not be Allowed to Invest in Equity?
Traditionally, pension funds were averse to equity investments. However, over the years, pension funds have been steadily pouring money into pension funds. This has been facilitated by the lower interest rates offered on fixed income securities as well as the rise in the value of stocks and other risky assets. Nowadays, most experts believe that […]
Preferred Shares: An Introduction
Whenever the topic of fixed income securities is considered, the obvious assumption many investors make is that the conversation is about bonds. It is true that bonds are the most commonly traded types of fixed-income securities. However, they are not the only type of fixed-income securities. Preferred shares are another common type of fixed income […]
The Benefits of Buying Local
President Trump has brought the issue of buying local to the forefront once again. He is enacting laws in support of “Buy American, Hire American” principles which he ideologically believes in. This would not be the first case wherein governments are encouraging consumers to buy locally. When government agencies procure materials for government use, a […]
Brands are different from products in a way that brands are “what the consumers buy”, while products are “what concern/companies make”. Brand is an accumulation of emotional and functional associations.
Brand is a promise that the product will perform as per customer’s expectations. It shapes customer’s expectations about the product. Brands usually have a trademark which protects them from use by others. A brand gives particular information about the organization, good or service, differentiating it from others in marketplace.
Brand carries an assurance about the characteristics that make the product or service unique. A strong brand is a means of making people aware of what the company represents and what are it’s offerings.
To a consumer, brand means and signifies:
Brands simplify consumers purchase decision. Over a period of time, consumers discover the brands which satisfy their need. If the consumers recognize a particular brand and have knowledge about it, they make quick purchase decision and save lot of time. Also, they save search costs for product.
Consumers remain committed and loyal to a brand as long as they believe and have an implicit understanding that the brand will continue meeting their expectations and perform in the desired manner consistently.
As long as the consumers get benefits and satisfaction from consumption of the product, they will more likely continue to buy that brand. Brands also play a crucial role in signifying certain product features to consumers.
To a seller, brand means and signifies:
A brand, in short, can be defined as a seller’s promise to provide consistently a unique set of characteristics, advantages, and services to the buyers/consumers. It is a name, term, sign, symbol or a combination of all these planned to differentiate the goods/services of one seller or group of sellers from those of competitors.
Some examples of well known brands are Mc Donald’s’, Mercedes-Benz, Sony, Coca Cola, Kingfisher, etc.
A brand connects the four crucial elements of an enterprise – Customers, Employees, Management and Shareholders.
Brand is nothing but an assortment of memories in customers mind. Brand represents values, ideas and even personality. It is a set of functional, emotional and rational associations and benefits which have occupied target market’s mind.
Associations are nothing but the images and symbols associated with the brand or brand benefits, such as, The Nike Swoosh, The Nokia sound, etc. Benefits are the basis for purchase decision.
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