Brand development


Definition:
Brand development is a systematic and iterative process for building and strengthening brands.

Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity. Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with present and future purchases of the same product. This may increase sales by making a comparison with competing products more favorable. It may also enable the manufacturer to charge more for the product. The value of the brand is determined by the amount of profit it generates for the manufacturer. This results from a combination of increased sales and increased price.

The annual list of the world’s most valuable brands, published by Interbrand and Business Week, indicates that the market value of companies often consists largely of brand equity. Research by McKinsey & Company, a global consulting firm, in 2000 suggested that strong, well-leveraged brands produce higher returns to shareholders than weaker, narrower brands. Taken together, this means that brands seriously impact shareholder value, which ultimately makes branding a CEO responsibility.

Principles of a good brand name
It should:

• be legally protectable
• be easy to pronounce
• be easy to remember
• be easy to recognise
• attract attention
• suggest product benefits (e.g.: Easy-Off) or suggest usage
• suggest the company or product image
• distinguish the product's positioning relative to the competition

A brand is a name, term, sign, symbol or design, or a combination of these, which is intended to identify the goods or services of one group of sellers and differentiate them from those of competitors (Kotler, 1994, p. 444; Kinnear et al, 1995, p. 292).

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