Importance of branding
This essay deals with the importance of brand image and brand building for companies and how they can adapt their promotional mix, in order to obtain the desired results, related to their image.
First of all, it is necessary to get to know the market environment. It is essential for one company that they know how the consumers act: what is their culture? What are their habits? Who are the competitors?
Once they have a good impression of the market, they can start building up their brand image by keeping in mind several key elements.
When a strong brand is established, the work is not over yet. The company must invest in maintaining a long term relationship with its customers. Otherwise the customers will easily switch between brands, due to the massive oversupply of different brands.
To maintain such a long term relationship with your clients you must adapt the promotional mix. Sponsorship is a perfect way to enhance your brand image and reach your desired target group.
To a company, it is important to differentiate yourself from the competition. Consumers also, want to differentiate themselves from the rest. They want to be unique and try to obtain a certain level of uniqueness by identifying themselves to certain brands.
When consumers are shopping, subconsciously they will form a list with their favourite brands who are top of mind, based on what they have heard, seen or experienced. Therefore branding has become almost critical in the competitive market of today.
To most important elements to build your brands are:
Knowing your consumers and relating to them;
building a relationship with your consumers;
sustaining the quality of your products;
providing a better value;
differentiate your business from the competition.
Once you can maintain all the points listed above, your chances of having a strong brand in your product portfolio are strongly increased. However this is not a guaranteed success, because consumer behaviour change rapidly. (Mele, n. d.)
The world keeps on evolving every day. So does the market and the consumers. That is why a company has to build up a strong brand and a good image, in order to survive in this fast changing world.
Several factors, such as: the increased standard of living, increased mobility of consumers and the globalisation of media, also have a huge impact on how companies must act. (Craiga and Douglas, 2000)
They must identify their customers, getting to know them and adjusting the brand image in order to build and maintain a long term relationship with them.
2 Market environment
The market environment keeps changing on a daily base. Mainly this is because of the changing economy, that has an impact on companies and consumers.
Companies can approach the market in two ways: "market driven" or "market driving". Market driven is when they react to the consumers needs and adapt their offer, while when a company is market driving, they conduct a more pro-reactive approach which implies leading customers and reshaping markets. (Tarnovskaya, Elg and Burt, 2008)
It is impossible to control all factors that affect the market, but a company must be aware that little changes can help to influence how the main public perceives a brand. When a company takes in a clear position, it can differentiate itself from the rest and will attract a certain part of the market.
When the market is changing, companies should also be thinking of rebranding their brand or company image. But lots of companies are afraid of changing their strategy. However when a change is well planned and is executed on the right moment, it can be an very effective tool to gain an advantage on the competition. (Spaeth, 2010)
When a company is active on a world level, they also must keep in mind different factors such as the demography, cultural differences and economic differences....
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