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Why do people trust some names such as, Sony and Coca-Cola? Do these products have more features over other products? (3: 66). Brands are names which give products their power. That power can make a positive image in the mind of the consumer that s why branding is the first job that marketers consider. A brand is a mixture of feelings that goes into both directions from the brand to the consumer and the other way around.
These feeling are which give brands their confidence and value (8: 50). Brands come with different shapes and styles. A brand can be presented as a product (e. g. , Coca-Cola), a service provider (e. g. , KLM), a retail store (e. g. , Safeway), an organization (e.
g. , UN), or a famous person (e. g. , Ronaldo) (3: 66). A brand in general is a name and we can consider that every brand is a product, but not the other way around, which means that not every product is a brand (8: 50). However, a brand is not only a name it represents the character, personality, and the company that produces products or provides a service (3: 66). A brand is a set of things that are not physical and can be touched. Brands are things that distinguish a product from others (8: 50) Product through mail or by the Internet (7: 52).
What makes you be sure that they want take your money and ignore you. There are brands so powerful that they are known by there initials (the first letter of each word in the name), (e. g. , CNN, BMW, and ITT) (7: 50 - 51). Other brands are paid more than they originally worth just to be acquired (5: 2 - 3). The power of brands can not be ignored because it is like engines that make cars move.
The power of brands can also be recognized in places that is crowded with similar products. The strongest brand will be distinguished easily (2: 24 A). Finally, brands are a very strong tool in the hands of marketers if they use them well (7: 50). Brands have the ability to make a positive image in the mind of the consumer. B. Value of branding When a company has a decrease in sales the first thing that marketers consider is the brand.
They try to prevent their brand from being coated with dust, they want it to be always clear. Creating loyal consumers who will still use your product even if there were a better existing product in the market, is one thing that marketers believe in to increase their brand value (7: 51). Light says that a brand is promise to the customer (6: 3). Branding is one way that makes the process of decision-making easier, that is by helping consumers to limit their choice (6: 3).
There are thousands of brands in almost each industry, so there must be something that makes it easier to choose between the over loaded shelves. For marketers there are three important things that must be considered in a brand to have a good value in an over-stored market. First, it must be about something that the consumer cares about. Second, it must be distinctive and specific separating the product or service from the rest of the market. Finally, it must be trustworthy (can be trusted) (3: 67).
III. BRAND MANAGEMENT A. Brands are valuable assets In some cases, brands can be the company s most expensive asset. In Coca-Cola s 1995 annual report they reported: If our company burned to the ground, we would have no trouble borrowing the money to rebuild, based on the strength of our trademarks (brands) alone (3: 67). Table 1 shows some of the world s most valuable brands.
In 1995, Financial World magazine reported that Coca-Cola s brand had an estimated value of $ 39 billion. The Marlboro name was set at $ 38. 7 billion, Microsoft was worth $ 11. 7 billion. IBM had an estimated value of $ 7. 1 billion. Finally, Intel was set at $ 9. 7 billion (6: 1).
These were some examples that shows how can brands be valuable assets, sometimes even worth more than all other assets that the company own combined. Brand equity is a recognized base value apart from product sales revenues, which Almquist said about it the following: Companies do not own the customer s mind. Companies can only indirectly manage that brand equity. (6: 6). What does he mean by saying, Companies can indirectly manage that brand equity? Managing that brand equity can be by doing market researches and perform other marketing activities. B.
Brand extension Nowadays a lot of new products are being introduced into the market. Big proportions of these products are line extensions from a parent product (4: 12). There are reasons that makes marketers consider brand extension, one of them is to reach a new market, another is producing new products that have a big share of the market in that period of time (1: 1). Marketers have to be careful when making an extension, because there is no role that can assure them that it will be a successful extension. There are steps in brand extension. First, the extension must be relevant to the parent brand.
Second, the value of the extension must be similar to the original brand. Finally, the extension must yield a competitive advantage for the brand being extended (1: 1). Extensions are lower risk alternative for increasing sales, but marketers also have to be careful when making an extension, because there might be some risks beyond that extension and your dreams successful new brand may stay as they are and don t become apart from reality (9: 49). So, an old saying might be helpful in such a situation which is Do it right or don t do it (9: 53). So, either you do your extension in a good way or don t do it, because it may be harmful to the company s financial status.
Extensions either to focus on a different market segment or may be an attempt to increase sales within the same market segment by focusing on satisfying the needs of people in that market. If the people in that market reject the extension then the company will be a failure one (6: 4). Again the company must take care of the extension being developed. COCLUSION Brands nowadays are very sensitive to changes in the market that is because of the raising competition between brands. More and more brands are coming to existence these days, which makes the market crowded with similar brands. Only smart marketers who can distinguish their brands and make them clear in the middle of that over-stored market.
Marketers also seek the reliability in their brands and try to maintain them and manage them well to preserve their value and gain more loyal consumers that will stick to the product, support it and believe in it. Adam Smiths major contributions to economics are explained in his book, The Wealth of Nations. The book, published in 1776, explains economic theory in a detailed, yet understandable fashion. 1 Smith argued that market forces ensured the production of the right goods and services. Without government intervention, public well being would increase from competition organizing production to suit the public.
This was the basis of the free market economy. Competition would mean producers trying to outsell each other, bringing prices down to their lowest possible levels. If there were not enough competition, producers would make more profit, causing more firms to join the industry, lowering prices. Smiths ideas were some of the first in economics, and many still hold true to modern-day economics. David Ricardo developed two key theories that are still important in current economics. These essential ideas include the problem of diminishing land returns, and the law of comparative advantage.
Ricardo was worried about rising population, and its affects to the economy. He argued that with growing population, more land would have to be cultivated, but the return from the land would not be constant, as the amount of capital available would not grow at the same rate. The land would suffer from diminishing returns and extra land brought into cultivation would become more and more marginal in terms of profitability. Ricardo essentially believed that each country should specialize in whatever leads them to the lowest opportunity cost. Ricardo's other key theory, comparative advantage focused on comparative cost. He showed for example, that if country A produced a good at a lower opportunity cost than country B, then A should specialize in the production of that good and B should specialize in the production of the other good.
The two countries would mutually benefit from trading. 5 These two economic theories still hold true today. The Product Cycle Hypothesis suggests three product stages (new product, maturing product, and standardised product). The trade occurs when this hypothesis can postulate a dynamic comparative advantage because the countrys source of export shifts from leading developed countries as the product moves from its introduction to maturity and standardisation. The implications of this theory will effect a developing country which in this case is China in that it will be confined to exporting older products as opposed to new high-technology goods. Branding Strategies Branding is perceived impressions of a brand by market segments. Frequently related to abstract association.
May be the result of continued marketing action or an accident of market perception. There are many strategy branding image, such as 1. Multiproduct 2. Multibrand 3. Reseller 4. Mixed 5.
Generic Kellogg is using the Multiproduct strategies. Because the company is using one name, which is Kellogg, for a range of company product, which are Kellogg Coco Pops, Kellogg Front, Kellogg Corn Pops and many others. A brand is an intangible that has value only in the minds of consumers. There are many factors that affect in evaluating consumer view about the brand, such as 1. Name awareness 2. Brand association 3.
Product image and position 4. Brand Loyalty 5. User s image 6. Perceived quality 7. Associated brand assets and strength 8.
Relative image and positioning of competitors 9. Company image Why do people trust some names such as, Sony and Coca-Cola? Do these products have more features over other products? (3: 66). Brands are names which give products their power.
That power can make a positive image in the mind of the consumer that s why branding is the first job that marketers consider. A brand is a mixture of feelings that goes into both directions from the brand to the consumer and the other way around. These feeling are which give brands their confidence and value (8: 50). Brands come with different shapes and styles. A brand can be presented as a product (e. g. , Coca-Cola), a service provider (e.
g. , KLM), a retail store (e. g. , Safeway), an organization (e. g. , UN), or a famous person (e. g. , Ronaldo) (3: 66). A brand in general is a name and we can consider that every brand is a product, but not the other way around, which means that not every product is a brand (8: 50). However, a brand is not only a name it represents the character, personality, and the company that produces products or provides a service (3: 66).
A brand is a set of things that are not physical and can be touched. Brands are things that distinguish a product from others (8: 50) Product through mail or by the Internet (7: 52). What makes you be sure that they want take your money and ignore you. There are brands so powerful that they are known by there initials (the first letter of each word in the name), (e. g. , CNN, BMW, and ITT) (7: 50 - 51). Other brands are paid more than they originally worth just to be acquired (5: 2 - 3).
The power of brands can not be ignored because it is like engines that make cars move. The power of brands can also be recognized in places that is crowded with similar products. The strongest brand will be distinguished easily (2: 24 A). Finally, brands are a very strong tool in the hands of marketers if they use them well (7: 50). Brands have the ability to make a positive image in the mind of the consumer. B.
Value of branding When a company has a decrease in sales the first thing that marketers consider is the brand. They try to prevent their brand from being coated with dust, they want it to be always clear. Creating loyal consumers who will still use your product even if there were a better existing product in the market, is one thing that marketers believe in to increase their brand value (7: 51). Light says that a brand is promise to the customer (6: 3).
Branding is one way that makes the process of decision-making easier, that is by helping consumers to limit their choice (6: 3). There are thousands of brands in almost each industry, so there must be something that makes it easier to choose between the over loaded shelves. For marketers there are three important things that must be considered in a brand to have a good value in an over-stored market. First, it must be about something that the consumer cares about. Second, it must be distinctive and specific separating the product or service from the rest of the market. Finally, it must be trustworthy (can be trusted) (3: 67).
III. BRAND MANAGEMENT A. Brands are valuable assets In some cases, brands can be the company s most expensive asset. In Coca-Cola s 1995 annual report they reported: If our company burned to the ground, we would have no trouble borrowing the money to rebuild, based on the strength of our trademarks (brands) alone (3: 67). Table 1 shows some of the world s most valuable brands. In 1995, Financial World magazine reported that Coca-Cola s brand had an estimated value of $ 39 billion.
The Marlboro name was set at $ 38. 7 billion, Microsoft was worth $ 11. 7 billion. IBM had an estimated value of $ 7. 1 billion. Finally, Intel was set at $ 9. 7 billion (6: 1). These were some examples that shows how can brands be valuable assets, sometimes even worth more than all other assets that the company own combined. Brand equity is a recognized base value apart from product sales revenues, which Almquist said about it the following: Companies do not own the customer s mind. Companies can only indirectly manage that brand equity. (6: 6).
What does he mean by saying, Companies can indirectly manage that brand equity? Managing that brand equity can be by doing market researches and perform other marketing activities. B. Brand extension Nowadays a lot of new products are being introduced into the market. Big proportions of these products are line extensions from a parent product (4: 12). There are reasons that makes marketers consider brand extension, one of them is to reach a new market, another is producing new products that have a big share of the market in that period of time (1: 1).
Marketers have to be careful when making an extension, because there is no role that can assure them that it will be a successful extension. There are steps in brand extension. First, the extension must be relevant to the parent brand. Second, the value of the extension must be similar to the original brand. Finally, the extension must yield a competitive advantage for the brand being extended (1: 1). Extensions are lower risk alternative for increasing sales, but marketers also have to be careful when making an extension, because there might be some risks beyond that extension and your dreams successful new brand may stay as they are and don t become apart from reality (9: 49).
So, an old saying might be helpful in such a situation which is Do it right or don t do it (9: 53). So, either you do your extension in a good way or don t do it, because it may be harmful to the company s financial status. Extensions either to focus on a different market segment or may be an attempt to increase sales within the same market segment by focusing on satisfying the needs of people in that market. If the people in that market reject the extension then the company will be a failure one (6: 4).
Again the company must take care of the extension being developed. COCLUSION Brands nowadays are very sensitive to changes in the market that is because of the raising competition between brands. More and more brands are coming to existence these days, which makes the market crowded with similar brands. Only smart marketers who can distinguish their brands and make them clear in the middle of that over-stored market.
Marketers also seek the reliability in their brands and try to maintain them and manage them well to preserve their value and gain more loyal consumers that will stick to the product, support it and believe in it. Adam Smiths major contributions to economics are explained in his book, The Wealth of Nations. The book, published in 1776, explains economic theory in a detailed, yet understandable fashion. 1 Smith argued that market forces ensured the production of the right goods and services. Without government intervention, public well being would increase from competition organizing production to suit the public. This was the basis of the free market economy. Competition would mean producers trying to outsell each other, bringing prices down to their lowest possible levels.
If there were not enough competition, producers would make more profit, causing more firms to join the industry, lowering prices. Smiths ideas were some of the first in economics, and many still hold true to modern-day economics. David Ricardo developed two key theories that are still important in current economics. These essential ideas include the problem of diminishing land returns, and the law of comparative advantage. Ricardo was worried about rising population, and its affects to the economy. He argued that with growing population, more land would have to be cultivated, but the return from the land would not be constant, as the amount of capital available would not grow at the same rate.
The land would suffer from diminishing returns and extra land brought into cultivation would become more and more marginal in terms of profitability. Ricardo essentially believed that each country should specialize in whatever leads them to the lowest opportunity cost. Ricardo's other key theory, comparative advantage focused on comparative cost. He showed for example, that if country A produced a good at a lower opportunity cost than country B, then A should specialize in the production of that good and B should specialize in the production of the other good. The two countries would mutually benefit from trading. 5 These two economic theories still hold true today. The Product Cycle Hypothesis suggests three product stages (new product, maturing product, and standardised product).
The trade occurs when this hypothesis can postulate a dynamic comparative advantage because the countrys source of export shifts from leading developed countries as the product moves from its introduction to maturity and standardisation. The implications of this theory will effect a developing country which in this case is China in that it will be confined to exporting older products as opposed to new high-technology goods. Branding Strategies Branding is perceived impressions of a brand by market segments. Frequently related to abstract association. May be the result of continued marketing action or an accident of market perception. There are many strategy branding image, such as 1.
Multiproduct 2. Multibrand 3. Reseller 4. Mixed 5. Generic Kellogg is using the Multiproduct strategies. Because the company is using one name, which is Kellogg, for a range of company product, which are Kellogg Coco Pops, Kellogg Front, Kellogg Corn Pops and many others.
A brand is an intangible that has value only in the minds of consumers. There are many factors that affect in evaluating consumer view about the brand, such as 1. Name awareness 2. Brand association 3. Product image and position 4.
Brand Loyalty 5. User s image 6. Perceived quality 7. Associated brand assets and strength 8. Relative image and positioning of competitors 9.
Company image
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Research essay sample on Coca Cola Comparative Advantage
