How important is brand value ?


Last week a friend of mine asked me to accompany him for shopping . I went with him and he took me to a shop little far away and told me that this is new kind of store where u will get only branded items and that too at a cheap price. I wondered why he travelled so far to this shop and buy items,while he could have bought more quantity of the same item without travelling so far spending much. I asked him about this and his reply was -”if you get a chance to buy a smartphone, will you prefer a local phone or one by apple? ”. His reply was simple though something came to mind asking why apple is so demanding even though its price is very high. So there must be something in that on which the customers lay their faith and pay for it. Yes! The brand value.

So like my friend, most of us use the word brand so often while we go shopping for anything .so what is a brand? Are all companies with a name called brands? When someone says Apple is a brand and Aple(a cheap rip-off) is not, is that true?

The American Marketing Association defines a brand as “A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name.

Yes, brand is something which a customer thinks when they hear about particular product. It is the perception; customers have about that product or service. Let’s say, for example, when someone hears about adidas or nike ,first thing that comes to their mind will be athletics,sports,etc. In case if they hear about fedex the thought will be about reliable delivery and in case of coca cola ,the taste of coke.Brands give a kind of promise to the customers regarding their produts or services and in accordance to that promise customers will start expect more about their products. If that company could keep up to the expectations of their customers through their products, the customers are more than ready to pay for it no matter how much they have to pay for that product.

Brandname is the name signifying the source of product and service. The brand of that particular brand name is decided by the customers not that company. So if a brandname can successfully meet the expectations of their customers, well, we can say that this company has got some real brand among customers. It is not that easy for a company to maintain its brand value and brand equity for a prolonged period of time unless they try to maintain what people expect in their products or service. There will be tough competition from other companies or brands with the same product. So they will have to keep a close eye on the customers and their needs to keep their brand name high. There exist many factors on which they must stay focused to stay on top the list.

 Brand value and brand equity, what does that mean?

Brand value is something which gives the brand its worth and distinguishes it from other brands so that shareholders and management are ready to invest in that company. Or, in simpler terms, what the brand is worth to management and shareholders.
Brand equity is the value a company gains from its name recognition. Brand equity is the reason why a company is willing to pay millions of bucks for a short advertisement in between shows or in between games on tv or place their logos on player jerseys. Inorder to ensure the loyalty of the customer that makes the brand equity so valuable, the company must consistently develop quality products. This creates loyal customers that prioritizes one brand over another. It helps businesses to expand product line without having to create an entirely new marketing campaign. Consider the case of Adidas brandname, its easier for them to sell their products by having their name and logo on it. Consumers recognize that Adidas makes the product and the customers are more likely to purchase it because of their previous positive experience with the adidas product or by recommendation from someone who uses products of Adidas. All of these customers can evaporate with a single bad decision or recall of products.

Inorder to maintain consistent brand equity and brand value to top the list branding must be done in an efficient way. branding, by the way, is known to be the process  of creating and publicize a brand among consumers for a particular product. Branding is something familiar to us all right? Every day we come across many brand’s ads and that is one way of branding. The social media are being utilized to create brand among people. Celebrties and their star value are utilized too. Persona also plays a great role in branding too. Branding is a how you can publicize that your product is much better than any other in the market and that too under a brand name.

There are some other things too, which can affect a brandname’s position in top brandname list. Consider the case of the brand name coco cola.Coca-Cola was the leader in brand ranking for more than a decade before two giants knocked Coca-Cola off the top spot in 2013. Apple led the way in the ranking and Google followed. Both companies rooted in technological innovation, both companies focused in providing products and services that could make peoples life easier which is a need of time in current scenario.

If a brandname could identify the requirements of people and work accordingly without compromising the quality of products and keep up to their requirement expectations (that is what every company is trying to do) then the brand for that brand name will be safe in the hands of people. Price wont be a factor if a brand exists in the mind of consumers. The role of price comes into play when similar product from a different brandname having somewhat the same brand value hits the market; there the customer would prefer one with low price irrespective of the brand name. This can happen even when some new brand-name tries to enter a competition where the giant brands ruled the product market, with a price that is marginally lower than what the latter priced the product with same or lower specification or quality. This is what happened when Xiaomi pranced into the smartphone market with cheap phones that anyone could buy and now is the largest smartphone manufacturer in china and the second largest in the world.

Income level of people can also change their attitude towards the brand concepts. An average-income customer wont spent much on luxuries, but that wont be the case of a richer family. Poor may have to depend on low cost products which wont be that branded. So brandname must consider the majority people’s case to have a better brand value.

Peoples lifestyles have changed with time. The standard of living has also improved compared to the past years. Globalization has shown its influence on new generation of humanity. People tend to look at the brand value and quality rather than price. They all ready to pay for the products which assure its quality. They all want products that last a life-time. The irony is that, these products are dumped even before they see any defects just because there is a much better product in the market. So why did we need quality in the first place? Or is it that we just needed the brand name so that we could show it off? Well, really it depends. I still have many not-so-branded products that are years old while many branded products that were either destroyed or tampered. So does brand always mean quality? I don’t think so. But it gives us an assurance that their product is worth the buy. They have customer-care and support which can help customers address their problems with their products or service and this feature is absent with unbranded products. So picking up a branded product is always safer and  better than picking any unbranded item. But if you just don’t care about the quality of the product or service and is on a budget, it is always advisory to take the cheapest bet you can find. Meanwhile companies are “fighting hard” to extend their brand by attracting all level of income holders.So there is no surprise now when i think about my friend’s attraction towards the “branded” products.

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