are brands dead?
May 9, 2011 § 2 Comments
A brand can be defined as the ‘name, term, design or symbol that distinguishes products or services from competitive offerings.’ (American Marketing Association, 2007) The remarkable value of brands for both the consumers and the firms is well understood by managers across industries. From the consumers’ perspective, brands simplify their decision making process before purchase, reduce risks (functional, social etc.) projects the right message to those around and provides self-relevance. For the firms, the benefits provided by strong brands are boundless – Rita Clifton, the chairman of Interbrand UK, a branding consultancy, argued that ‘well managed brands have extraordinary economic value and are the most effective and efficient creators of sustainable wealth.’ Indeed, powerful brands help firms reap both tangible and intangible values. They also offer strong competitive advantage by creating a high barrier to entry, snuffing out competition from newcomers. It is no surprise that companies (such as Google, Apple) that possess highest rated brands are often the most profitable.