CopelandR MKTG600 MidTerm Essay

Going back to the four types of market structures we can now say that our company is approaching a monopolistic competition structure, in which there are still many buyers and sellers of products, but we have set ourselves apart from our competition with our innovations and there is no longer perfect substitution of products (Harris, McGuigan, Moyer, 2014, p. 352). In this type of structure a firm can earn profits, break even, or suffer losses. In the short run a new entrant into the

Brand equity is a consumer-based concept (Elliot 2017) and strategic asset of a company that encompasses the idea of the added value a brand contributes to a product. Influenced by consumer choices, it is the characteristic of a brand that indicates high levels of performance and determines the success of companies.

Every organization main goal is create brand equity which is value that is added value endowed by the brand to the product. The end goal is to create brand loyalty with customers. Brand loyalty provides a host of benefits including:

The decade between the 1920’s and 1930’s was the period of the creative destruction as the new business model supplanted the old. It was during this period that the shake out of the industry started because maybe more than 100,000 small companies exited the industry, and the remaining ones tried to made alliances as cooperatives with

Technology is everywhere and is evolving permanently. Since the beginning, it has been changing the way people work, travel, communicate, socialize, and shop. Consequently, people’s shopping practices have changed as well, which has led companies to modify the way they advertise their goods and services. In “How to Market to Men in 2010” Terry O’ Reilly (n.d.) states that advertising had a huge innovation in 1915 when the first ad for men was printed by the company Cadillac. Marketers found a new technique to advertise merchandise, which led on to associate the product to the desires of the people. A couple of decades ago, the more common means for advertising products were through television, radio, and print media including newspapers, magazines, and flyers. Nowadays companies are opting out of traditional advertising and instead they are using the internet and the social networks to promote their commodities.

Currently, the business world is rapidly changing due to technology advancement. Every company needs to catch up to the latest trends to be able to survive in the industry (Olsen, 2005). Turning into the digital age, online marketing like social media are now being used in most organizations. It is a good opportunity for companies to apply digital marketing to their marketing activities since it is much cheaper and affordable than the traditional marketing methods. Moreover, online media will enable marketing team to get customers’ feedback about their products and services in real time and improve what negatively affects their company (Irwin, 2011).

One thing that can make or break a company is its brand equity. Brand equity is the value that comes with the familiarity with a company’s branding and the feelings consumers have towards that brand (Brand Equity, n.d.). A company with strong brand equity usually gives consumers a sense of reliability and value; causing a higher inclination to purchase its products. It usually takes

Brand equity increases as brand loyalty, brand awareness, perceived quality brand associations, and number of brand-related proprietary assets increase and become stronger and more positive.

The value given to the brand by the consumer is the brand’s equity. The brand obtains its

In this method, brand equity is defined as “the incremental cash flows which accrue to branded products over unbranded product”

5. Why is brand equity so important to companies? What are the characteristics of an effective brand name?

“Brand equity is the value of the brand name, its worth as an asset to the company.” (Marketing

In your own words, describe what are brands, and what are their functions in global marketing? What is a brand image, and how is it different from brand equity? How is a brand equity formed? Please illustrate using an example of a global brand.

With the growth of world economy markets became flooded with competition, organisations started to understand the importance of building strong brands (Norjaya, 2007). Aaker (1996) said that well-known brands brought loads of advantages and allowed companies to establish their identity in the market. Brand equity is built on brand identity and brand image therefore it is important to study those 2 topics (which in my eyes are inseparable) fully. Brand Identi-ty is something what company is promoting and wanted to be seen, whereas Brand Image how the company wants to be seen, where the second one is the actual portrait of the compa-ny on consumers’ minds (Yastrow 2013; Keller, 2003; Kotler et al, 2009). Keller (2003) said that organisations are spending huge amount of money in order to bridge the gap between brand identity and brand image, essentially smaller gap would mean that consumers are be-lieving in brands core

Importance of brand equity demands need for more practical experience and comparative research to judge and validate the usefulness of brand evaluation methods (Farquhar 1990). The recent merger and acquisition trend has also increased the importance of measuring brand equity (Tauber 1988). The role of brands is now far beyond product differentiation or competing for market share. They are accumulated annuities which the firm can acquire from its balance sheet (Tauber 1998). Firms could have a strong competitive edge over competitors if they could create brand equity ‘through building awareness, image, and linking associations’ (Keller 1998). A stronger brand would always have a better understanding of needs, wants, and preferences of consumers than the brands that are not competitive. Thus stronger brands would help in creating effective marketing programs that could go beyond consumer expectations.