Study On The Brand Value Based On Marxism Market Value Theory

By critically accepted labor value theories of Classic Economics School, Karl Marx developed Labor Value Theory, which had been seriously challenged in the era of commodity economy especially while knowledge economy highly developed. Labor Value Theory has been heatedly discussed for five times ever since the foundation of The People's Republic of China. The "Broad School" has put forth that labors participate in making of physical products can be considered as production labor. Factors of production not only involve in economic activities such as production, transportation and distribution, but also contribute similarly to value creation. Bases on Labor Value Theory, this dissertation analyze some key value indexes of both factors of production theory and brand value theory following such masterstroke as mental labor value creation and physical labor value creation. In this way the dissertation expands theoretical system of Marxist Labor Value Theory by adding these value indexes to it.First of all, this dissertation outlines the basic ideas and value determiners of value theories of both production factors and brand, and takes them as theoretical base for analysis. Marxist Labor Value Theory is a model of value creation and value measurement in simple generic form. Value Theory of Production Factors is a model of value creation and value measurement in an era of developed commodity economy, while brand value theory is a model of value measurement in knowledge economy. Admitting that factors of production can create value is not the simple duplication of Sayer's philistinism of factor production value theory. However, technological innovations, knowledge innovations, corporate culture and management institutional innovation are complex mental labor, which is a source of value creation as well. The increasing homogeneity of technologies, quality and functions makes it difficult to gain competitive advantages through segmenting product markets and positioning products. Brand theory offers a good solution. Brand is an important carrier of corporate culture, which is an embodiment of mental labor creating values in form of brand culture, brand management, channel creation, customer relations management and visual symbols. Therefore, value theory of production factors and brand value theory enrich Marxist labor value theory.Secondly, this dissertation emphasizes the influence of technological innovation, knowledge innovation, customer management, quality management, brand management and communication and consumers' attitudes on value creation. Technology and knowledge is the intrinsic variable of brand. The innovations in technology and knowledge contribute great to brand value in the course of using the brand products. Technology and knowledge is the refinement of people's advanced and complex labor, and is the key to building core competence of brand, and through innovating them, enterprises improve quality of products, enrich the meaning of brands, support brand image and thus create additional value of brand. Management institutions are the assurance of escalating ideology of enterprises, regulating employees' behavior and improving performance of enterprises. Optimization of property rights, organizational institutions, quality management systems and customers management can reduce transaction cost of enterprises, and raise profits of enterprises. Brand quality is assurance of obtaining high economic performance, which directly influences brand itself and brand images. Brand quality management includes internal quality management of products and external image design management, service quality management and subjective feeling of consumers toward the products. The video elements of brand culture can escalate brand value. Traditional economists hold that quality and value of products determine consumers' selection and rejection of products, which become even more difficult because of the homogeneity of products in terms of quality and value. However, if brand culture echoes the culture values of consumers, the influence of brand gets greater. Brand identification includes brand names, and logos characterized by symbols, pictures, images and color. Enterprises transmit new cultural conceptions through innovating video identifications and accordingly shape new image of brand and enterprises themselves. The understanding, memory, identification and cognition of consumers determine brand attitudes of consumers, brand satisfaction, and brand loyalty, which constitute the base of customer's purchase. Such analyses on factors of productions and brand determinants justify that factors of production and brand can create values in the course of laboring.Thirdly, the dissertation analyzes functional elements of both physical value and non-physical value of brand. Analyses on functional elements of the non-physical value reveal how mental labor work creates brand value. A brand can be defined as a product which can provide functional benefits and added value to the customers who think it worthwhile to purchase them. The brand creates value in such two ways as: creation of production value of product and adhesion of culture-added value to physical products. The product is physical entity of its brand, whose the production value concretely manifestoes its value functions. The functional elements of physical value of the brand consist of functions, technological content, quality, materials, volume, weight and model of products. Non-physical functional elements of brand value are made up of consumer attitude(, i.e.,consumer awareness, consumer satisfaction and consumer loyalty), brand culture (including trademark, brand personality, brand quality, visual design and brand cross-cultural competence), brand channels( such as brand share, brand penetration and brand coverage), brand communication(i.e., advertising spending, brand recognition, brand reputation, and development prospect of brand), and brand management (including brand management and customer management). These factors have made a contribution to the creation of brand value.Fourth, the dissertation develops a feasible evaluation model of integrated brand value. With the development of theory of brand assets, evaluation model of brand value has turned out to be the focus of brand value research. However, there exit many defects and differences between evaluation models of brand value developed respectively in Chinese and foreign academic cycles. This dissertation unifies both value elements of production and brand factors, develops 9 indexes and 30 sub-indexes, which affect brand value. This set of indexes has overcome defects of previous model and better the evaluation model. In order to confirm effectiveness of new model, the author undertakes a case study on value creation of production factors in Jiangsu Little Swan Co. Ltd. This case study reveals that transformation of property right systems and diversification of multi-investment bodies with private capital as the holding parties had improved scientific and professional nature of decision-making by the board of directors and thus enhance decision-making efficiency. Besides, initiative technological innovation expands market shares of Little Swan washing machines, reduces costs and creates a higher value through reconstructing the supply chains, professional collaboration and professional operation. The dissertation also undertakes research on integrated brand value of color TV in Chinese market. Research findings validate such elements which make crucial contribution to value create of brand as marketing channels, research and development of technology, brand image, prices elements, and brand communication. The dissertation also confirms the relativity of brand value. Accordingly, the dissertation concludes that brand with high value in the international market may not necessarily lead to high value in Chinese market. Brand value is a comprehensive reflection of all value factors. Greater contribution of individual value element may not lead to overall high brand value created by all elements.Finally, the dissertation the follow suggestions basing on basic content and characteristics of value theories of both production factors and brand: (1) Broaden the research fields of labor value theory adopting an open system. Overcome the confrontation between value theory of production factors, value theory of brand and labor value theory. It is necessary to emphasize researches on the relations between usable value and value, researches on social relations of commodity manufacturers embodied in value creation, researches on relativity of value utility to different consumers, and the researches on values created by mental labor and other factors of production. It is also necessary to absorb rationally new findings in value theory researches to enrich labor theory of Marxism. (2) Brand strategy development should be assured by institutional management. Without such factor as institutional management brand manufacture and expansion are sure to be out of control. All world-famous brands without exception depend on management from the very beginning of creation to mature development. Management can maintain brand value. (3) Brand strategy development must take functional elements of brand as its base, which is the carrier of brand. With brand equity, other cultural attributes will lose its substantial adhesion. (4) Brand strategy development should take cultural elements as its core. Culture supports rich implications of brand and displays special culture attractions represented by brand. No culture, brand creation. Culture creates added value of brand. The culture construction of brand should be consumer-oriented, and the development of brand must satisfy rational and emotional needs of customers, and accordingly develop brand trust and brand loyalty. (5) It is necessary to develop comprehensive value conceptions of brand in order to develop brand strategy of an enterprise. Brand value is relative in that: It is relative to different consumers; its realization happens relatively in different markets; brand value is a manifestation a comprehensive set of indexes.