Exhibit 1.2 Some top global brands.
A brand is defined as a
trademark which in the mind of consumers embraces a particular set of values
and attributes, both tangible and intangible. Or in the words of David Ogilvy,
“a brand is a consumer’s idea of a product”. It is an imprint in their minds.
These descriptions embody two important notions
— that the brand is different from a product and that the difference resides in the
mind of the consumer. In
essence, a brand is the collection of memories, feelings and associations that
are linked to it.
Brand image is the consumers’ perception of
the brand. Products deliver a set of benefits — functional, rational,
emotional, personality, and brand-consumer relationship benefits. The image
of a brand relates to how it is perceived on these benefits or
attributes.
It is therefore in the interest of marketers to
craft a brand’s image in a manner that keeps it in tune with the brand’s
marketing strategy. In a nutshell, this entails choosing which segments
to target, differentiating the brand to appeal to the segments, and positioning
it distinctly in the minds of target consumers.
What distinguishes a brand from the tangible product
is referred to as brand equity. The power of the Coca-Cola brand to evoke
such an intense response from American consumers in 1985 is a reflection of its
extraordinary brand equity. Rated alongside Apple, Google and Microsoft (Exhibit 1.2), by branding consultancies like
Interbrand
as one of the most valuable brands in the world, Coca-Cola is beyond doubt an exception. For
the vast majority of brands, equity tends to be relatively low.
Of relevance too is the notion of brand identity. Unlike brand image,
which pertains to the imagery residing in consumers’ minds, brand identity is crafted by the brand’s manager.
It is the collection of elements of the brand created by its management, to reflect how it wants the brand
to be perceived. And it includes the brand’s tangible form — its name, appearance and packaging, logos and
other symbols, all forms of marketing communications and in-store presentation.
Since the brand’s image is authored by many other actors and influencers,
including consumers, popular culture, and opinion leaders and experts, brand owners need to exert their
influence on these authors. This task is even more important in our social age, and it is referred to
as meaning-management.
While branding is popularly associated with
consumer marketing, it is of equal importance to business marketing.
Top global brands such as Google, IBM, Microsoft, GE, Intel, and the big
automobile companies, have high proportion of their sales to business markets.
In business marketing, corporate brands position
organizations in the minds of their customers. These brands capture intangibles
such as integrity, trust, reliability, reputation and professionalism, all of
which are of utmost importance in business markets. They are nurtured by
delivering value at every customer touch point.
