Building Brands

Many firms focus considerable attention to building brands because brands are important to consumers and marketers.

The first step in brand building typically focuses on generating brand awareness.

Brand awareness is achieved when target consumers know about a brand and call it to mind when thinking about the product category. For example, Procter & Gamble has achieved brand awareness with Tide, which many consumers automatically recall when thinking about buying laundry detergent.

Brand awareness must then be translated into a brand image, or the impression that consumers have about the brand. Marketers should ensure that consumers have accurate ideas of the brand’s advantages and positive impressions of it. P&G is successful if consumers perceive that Tide gets clothes cleaner than do competitive brands. Consumer’s image of a brand should match the brand identity established by the company.

With a positive brand image established in their minds, some consumers will normally purchase Tide when shopping for laundry detergent. Such buyers exhibit brand loyalty. The most brand-loyal customers will select Tide on almost every purchasing opportunity.

The highest point of brand awareness, image, and loyalty is the development of brand equity, or the value that the brand has in the market place. Brand equity has a financial dimension, especially important in any merger or acquisition transaction. The financial value of P&G Tide would be significant in any discussion of an acquisition price, for instance.

Brand equity also affects marketing efforts. The same marketing strategy and level of expenditures used for different brands are likely to have different results, depending on brand equity. Typically, marketing efforts built on an established positive brand awareness, image, and loyalty-or high brand equity-are more successful.

The typical approach to building strong brands is to focus efforts on media advertising to generate brand awareness, to develop a desired brand image, and to get consumers to visit their sites. But it is only part of the brand building process. Research indicates that strong brands are built on the favorable experiences consumers have with a firm’s products and services. Effective advertising can only drive consumers to an Internet site or retail store or to try a product or service. Brand loyalty and brand equity depend on the experiences consumers have once at the Internet site, retail store, or when the product or service is purchased.

Comprehension questions:

1. Why are brands so important?

2. What is brand building focused on?

3. When is brand awareness achieved?

4. What is brand loyalty?

5. What is the typical approach to building strong brands?

Brand Values Common Brand Values

Brand values are the code by which the brand lives and operates. They express how the brand wants to be seen by its consumers. Every brand has its own values, but there are some common brand values, which can be divided into subsets:

Trust me

A brand may be respected it shows it is knowledgeable about, or has a very good understanding of, its area of expertise (for example, computing or finance) or its consumers. Many quality national newspapers have a strong heritage – they have built strong, lasting values over many years. They are trustworthy and dependable brands, often with an international outlook – reporting news from other countries. Some brands speak about their trustworthiness – their integrity, honesty and responsibility – and act in ways that are fair for the consumer and the environment. Other brands demonstrate their leadership qualities – the skills and organizations allow consumers to contribute to their brand values: being accessible, diverse, inclusive and independent.

I am good for you

Customer satisfaction is key for brands that offer values like great taste, low cost; value for money or good quality. Brands speak about flexibility, simplicity and practicality. Being easy to use is a positive value. Some brands focus on a healthy lifestyle and are nutritional, fresh and natural. Some brands show they are caring and want to look after their consumers. A good example is the toy retailer Toys “R” Us, which includes educational as one of its values.

I make you feel good

Companies can use experiences and qualities as brand values:

discovery: the brand helps you discover or find out about things;

pleasure: the brand helps you an enjoyable experience;

passionate: the consumer and the brand share the same passions or strong feelings;

inspirational: the brand can inspire the consumer to think about new things;

vibrant or fun: the brand offers amusing experiences;

active or dynamic: the brand is enthusiastic and has a lot of energy; it is constantly changing and adapting to the consumer;

luxury: the brand promises high levels of comfort and beauty at a high price.

I am your contemporary

Brands often mirror their consumers’ values with their own. Young and modern brands will list in their brand values qualities like modern, innovative, and creative and technological. More traditional brands will give their values as classic, heritage, authentic and original.

Comprehension questions:

1. What do brand values express?

2. What do other brands demonstrate?

3. What experiences and qualities can companies use as brand values?