Brand and Brand Concept
One of the elements of the environment of the product is its trademark - the name, term, symbol, symbol, pattern or combination thereof, intended to identify the product and differentiate it from competitors' goods . A trademark includes a brand name, a brand mark and a trademark.The branded name represents the part of the trademark in the form of letters, words and their combinations that can be pronounced.
Brand Sign - is part of a trademark that is recognizable but not pronounced. This is a symbol, a drawing, a distinctive color or a font design.
The trademark means a trademark or part of it protected legally, which gives the seller the exclusive right to use a brand name or brand name.
Depending on the brand under which the product is sold, there are two varieties of the brand - the brand of the manufacturer, often also called the national one, and a private brand.
The brand of the manufacturer is created by the manufacturer or leased from another manufacturer.
Private Brand is developed by wholesalers or retailers. Sometimes it can be called an intermediary brand, a distributor's brand, a dealer brand, a trademark. In the domestic specialized literature, a generalized term that does not discriminate between types of trade marches, trademark is often used.
The brand has its own value, included in the so-called intangible assets of the enterprise. The cost of a trademark is also taken into account when licensing it.
Successful is considered a trademark, willingly bought by consumers and trade organizations. Typically, the brand leader has twice the market share as compared to the product, whose prestigious brand is the second largest. The latter has a market share index twice as large compared to a product whose trademark ranks third.
By brand is understood the whole set of representations, ideas, images, associations, etc. about a specific product that has developed among consumers. A brand is an asset of an enterprise that provides for the emergence of additional cash flows due to the formation of a certain image in the minds of the consumer ensuring their loyalty.
The task of any enterprise that does not want to lose market share and its revenue is the need to integrate into new trends and actively use the brand policy in its marketing activities, the main form of which is branding, i.e. policy on brand management (brand policy).
Allocation of goods among their numerous analogues leads to the need for physical, visual and virtual differentiation, which predetermines the development of branding. In the West, the business follows the formula: "The commodity is what is produced, the brand - what will sell". Branding as a technology of strengthening competitive advantages is becoming one of the main tools of marketing activities of enterprises.
Branding technology basically fits into the scheme: analysis - positioning - strategy definition - promotion (Figure 4.17).
Increasing competition in most industries has led to the need to actively use the concept of brand politics for successful existence and conquest of the consumer.
Enterprise Product Policy
Product policy is one of the key places in the general brand system
Fig. 4.17. Typical Branding Steps
ting activity and the system of marketing complex (marketing mix), which in addition to the commodity price, sales and communication policy.
It includes measures to increase the competitiveness of products manufactured by the enterprise on the basis of improving its quality characteristics, meeting the needs of end-users, creating new products, optimizing their range, lengthening the life cycle.
Commodity policy includes the conduct of systematic studies at all stages of the CCT, and their object is not the product itself as such in isolation from specific markets and consumers, but the consumer with his requests for this product, his responses to the developed marketing activities at each stage of the product's progress from producer to consumer.
The enterprise that pursues the commodity policy pursues the goal of producing goods that are most satisfying to the consumer, which he will prefer to all other similar goods, i.e. priority in the choice of the consumer products in the market in connection with its high quality.
One of the main issues of the assortment policy - is the definition of the set of product groups most preferred for successful operation in the market and ensuring the economic efficiency of the enterprise as a whole.
Assortment policy tasks can be different:
o customer satisfaction;
o optimal use of technological knowledge and experience of the enterprise;
o optimization of financial results of the enterprise;
o gaining new customers by expanding the scope of the existing production program;
o compliance with the principle of flexibility through diversification of the scope of the enterprise with the inclusion of non-traditional sectors for it;
o compliance with the principle of synergy, involving the expansion of production areas and services of the enterprise, interconnected by a certain technology, a single qualification of personnel and other logical dependence.
Assortment policy determines the optimal ratio of a set of goods, different in the stages of the product's life cycle that they go through, while simultaneously being on the market. Optimization of the nomenclature of goods simultaneously sold in the market, but differing in the degree of novelty, allows to guarantee the company relatively stable conditions for securing sales volumes, covering expenses and the level of profits.
Naturally, there is no single recommendation on how many types of products and their modifications an enterprise should simultaneously produce and sell on the market, as there are no single sets of simultaneously traded goods of the enterprise depending on their stages of the life cycle.
Assortment strategy can be built in the following areas:
o product differentiation;
o product narrow specialization;
o commodity diversification;
o commodity vertical integration, etc.
Product differentiation is associated with the allocation of the company's goods and services as special, different from competitors, providing them with individual "spiked" demand.
Narrow product specialization is determined by the work of the enterprise in a rather narrow segment of the market and is associated with the restriction of the scope of sales.
Commodity diversification, , on the contrary, implies a significant expansion of the scope of the enterprise and the production of a larger number of goods (services), usually unrelated. Such a policy provides significant stability and stability of the enterprise, as it serves as a guarantor against the risks of reducing demand and crisis phenomena in the production of one product or one industry.
The policy of commodity vertical integration aims to expand activities not horizontally, as in diversification and horizontal differentiation, but vertically, when the enterprise develops (or joins) production or services in the same technological chain, for example, raw materials, basic materials, semi-finished parts and components, and sales functions for one product or a small commodity group.
The company's product policy requires a change if over a long period the enterprise has excess capacity; the main profits to the enterprise are given only a few goods (two or three); There is not enough of the goods corresponding to the market opportunities and the volume of the demand; sales and profits are constantly decreasing.
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