| Formation of consumer demand and managing the branding on the market plays an important role in the development and success of the business in any field. Every year on the market there is a huge amount of new goods and services, the vast majority of product groups represented by trademarks. New market segments are barely formed and just slightly different in nature. There are lots of similar products, and the differences between them do not allow consumers to make a quick and correct choice. That is why it is very important to the strategy of moving products to market. As a result, nowadays a brand becomes the most powerful business tool. Branding and brand management is a very important part of marketing. Building a strong brand image and quality will help a company to grow and gain profit.The first chapter is devoted to the theoretical aspect of brand.Definition characterizes the brand as an effective tool of differentiation and competitive advantage in cases where the consumer has no information or explanation as opposed to a competitor’s product.Brand is a set of real and virtual views expressed trademark, if properly managed, creates influence and value.According to some researches, brand is the intangible sum of product properties:its name, packaging and price matches, its history, reputation and fashion advertising. Brand is a combination of impression it makes on consumers, and the result of their experience in the use of the brand.A similar interpretation of the term has P. Feldvik, describing the brand as a collection of perceptions in the imagination of the consumer.These interpretations suggest that the brand is a promise that the company provides to its customers, the implementation of which will occur in practice only if the firm is willing to implement it.Systematization and analysis of definitions of the term "brand" allow defining it following the main characteristics of this concept, as a complex, multidimensional phenomenon, which has to be taken into account when designing control system competitiveness.1. Brand is a set of perceptions and identities that are created connect with the offer of goods, service, project, individual or firm, through marketing communication tools (advertising, various attributes, etc.)2. Branding is a broader concept than the brand and trademark, and it includes items such as a trademark, the product with all its characteristics, a set of expectations, associations, perceived by the user and attributed to the product (image), information of the consumer and promises any advantage given by the author of the brand to consumers.3. Brand is a promise. It’s a constant process of struggle and producers consumers for determining this promise and values. Branding is one of the means of communication with the consumer.4. Brand is not confined to the physical needs and requirements of customers and is not limited to the functional context of consumption; it takes a special place in the minds of customers, by retrospective experiences, associations and future expectations.5. Brand is a legal instrument; a mean of individualization of products and companies, part of the corporate culture of the company and it maintains its corporate identity.All of these characteristics imply that the brand is part of the marketing activities to create long-term product preferences of the firm, realized in the process impact of consumer trademark, packaging, advertising appeals and other instruments that produce goods of competitors and create its unique image.It should be noted that not every product or service could become a trademark or a brand. A trademark must acquire fame in the market and the confidence of the customers. During this process, the trademark is an image or symbol of a company or product is not yet the brand.Brand impact on consumers from several angles:first, from the functional point of view it gives the useful information and ensures a stable amount of consumer properties. Secondly, getting in touch with the emotional and psychological aspect is creates a stable, long-term, the positive relationship with the customer (loyalty). Third aspect of brand is cultural. It is the foundation of its existence, since it reflects a system of values, traditions, norms, shares target segment of consumers and producers.Variety of existing brands has given a rise to various kinds of classifications, which are based on such features as the company, the firm’s capital, geography, sales, etc.Branding, above all, is the process of brand management, including the creation of a brand, brand promotion and brand adaptation to changing market conditions. Necessary to define the components of branding such as:Fling of satisfaction, accepted usefulness and name.Public filling is a sign of social distinction, identifying agent.Mental filling is ideological content of what a consumer thinks of him/herself, the best brands are strong not only socially, but in the mental dimension, it penetrates into the very identity of the person affected, triggering personal transformational changes.Ideological content is the appropriate description of the future positioning of products or services. It is important to modify parts of a brand reveal its image, breathe life into it, and make it a convincing and credible concept. Creating brand ideology is the highest aim of a company.Future prospective.A Brand or product of the enterprise is not directed in a temporary present existence, it is also aimed primarily for the future. That is why it is very important for a company to keep a positive image of a brand.Modern branding strategy comes from the fact that a product must meet the important and valuable to the consumer quality requirements, causing a steady emotional response and help establish long-term relationship between the product and the customers, i.e. building the customer’s loyalty to a brand. In addition, the product or service must be easily recognizable and popular. A brand should reflect a consumer’s personality and values, attracting the attention and motivating them to make a purchase.The purpose of the brand is to achieve long-term competitive advantage in promoting a product or service on the market. Effective brands have strong beliefs and original ideas. They not only change consumer attitude to the brand but also transform their consciousness.This research work introduces the definition of brand (brand is the name, term, design, symbol, or any other feature that identifies a product and distinguish it from other products) emphasizing the importance of the quality of a brand. It is essential for a company to develop a high quality for its brand. When the producers of products are not identified with brand names, a crucial element of the market mechanism cannot operate because consumers cannot use their past experience to know which products to buy and which not to buy. In particular, consumers can neither punish companies that supply low-quality products by stopping their purchases nor reward companies that supply high-quality products by increasing their purchases.Consumer reliance on brand names gives companies the incentive to supply high-quality products because they can take advantage of superior past performance to charge higher prices. A company that creates an established brand for which it can charge higher prices knows that if it supplies poor products and its future demand declines, it will lose the stream of income from the future price premium it would otherwise have earned on its sales. This decrease in future income amounts to a depreciation in the market value of the company’s brand name. A company’s brand-name capital, therefore, is a form of collateral that ensures company performance. Companies without valuable brand names that are not earning price premiums on their products, on the other hand, have less to lose when they supply low-quality products and their demand falls. Therefore, while consumers may receive a direct benefit for the extra price they pay for brand-name products, such as the status of driving a luxurious brand-name car, the higher price also creates market incentives for companies with valuable brand names to maintain and improve product quality because they have something to lose if they perform poorly. When a company performs poorly, the brand name, market-enforced sanction it faces is usually much greater than any court-enforced legal sanction it might face. Because brand-name companies have a greater incentive to ensure high quality, consumers who buy brand-name products are necessarily paying for something:the added assurance that the company has taken the necessary measures to protect its reputation for quality.The second chapter introduces the components of a brand, such as:Brand recognition. A brand, which is widely known, is said to have brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. Brand recognition is most successful when people can state a brand without being explicitly exposed to the company’s name, but rather through visual signifiers like logos, slogans, and colors.Brand awarenessBrand awareness is the extent to which the consumer associates the brand with the product that they wish to purchase. It is the brand recall and the brand recognition of the company to the consumers. Brand recall is the ability of the consumer to recollect the brand with reference to the product whereas brand recognition is the potential of the consumer to retrieve the past knowledge of the brand when enquired about the brand or shown an image of the brand logo. Brand awareness is an essential part of brand development, which helps the brand to stand out from the others in this competitive market.[18]Brand loyaltyBrand Loyalty is a scenario where the consumer fears purchasing and consuming product from another brand, which he does not trust. It is measured through methods like word of mouth publicity, repetitive buying, price sensitivity, commitment, brand trust, customer satisfaction, etc. Brand loyalty is the extent to which a consumer constantly buys the same brand within a product category. The consumers remain loyal to a specific brand as long as it is available. They do not buy from other suppliers within the product category. Brand loyalty exists when the consumer feels that the brand consists of right product characteristics and quality at right price. Even if the other brands are available at cheaper price or superior quality, the brand loyal consumer will stick to his brand.[29]Brand equityBrand equity is a phrase used in the marketing industry which describes the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is better than products with less well-known names. Some marketing researchers have concluded that brands are one of the most valuable assets a company has, as brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one.Some researches distinguish the psychological aspect, brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand, of a brand from the experiential aspect. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The brand experience is a brand’s action perceived by a person. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people, consisting of all the information and expectations associated with a product, service or the company providing them.People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called brand orientation. The brand orientation is developed in responsiveness to market intelligence. To create a brand is to create a positive image for a product r service. This is closely related to the formation of motives and needs, as well as other phenomena of psychological properties.First, it is necessary to create a prosperous future image of a happy life, after using the advertised brand. Image of the future for consumers is usually positive, because every person wants to be attractive, happy and free.Second, a company faces the problem of people antipathy to certain products, objects or things. A brand might awaken unpleasant images of the social context of the individual’s life. For example:the bad association with any kind of product from childhoods, associations with disease (someone is forced to eat the product as a medicine), laziness (instant coffee), etc. These negative images are associated with unpleasant physical, physiological or verbal properties. To expel harmful associations and the subsequent images it is important for a company to begin checking on free association of all the words used in the promotion of the brand. To get rid of physical and physiological associations some companies use a method of creating an image of gourmet foods and beverages, which are consumed by strong men cheerful and charming women.Thirdly, certain words might awaken a certain image. The use of words expressing a specific meaning, which make it easy to imagine the real items, might increases the effect of suggestion. Words that describe quality items should create a pleasant visual concept or taste.It is possible to successfully exploit the idea of the image in a stratified society. Dividing it into upper, middle and lower classes creates layers of people who do not interact in real life. Representatives of one class of society have images about the life of another that is why it becomes easier to get the necessary positive images to promote the brand. If the main consumer of a product is the middle class it has the psychological desire to emulate the behavior in the upper class. For most classes in a society, except the lowest, there is a desire to move up the social ladder. Brand naming uses, of course, symbols of the middle class, but embellishes the upper classes and their attributes. There is a special language of images that promote images of beauty and respectability, stereotypes of glamorous life, hope, success, love, clothing and so on. Business firms sell the characters and personalities, and the population is willing to buy them. Advertising firms can organize the life of their consumers from selling houses with furniture, housewares, and linens to circle of friends, familiarity with the local community and joining the club. This is the guarantee for the value of the product and socio-economic status of the buyer. The desires to take a higher position causes people to buy more expensive stuff (all the same, from a ballpoint pen to a car), larger objects (most prestigious big cars), listen to the celebrities (there are special companies that solicit comments about celebrities of a particular product). All these appear from the qualities of a person as social and psychological beings. This substance is used in brand naming.Set of psychological qualities can serve as a crucial factor in the transformation of the real potential buyer. Brand naming must capture the taste and mood variations of different social and age groups, using the specifications of their perception of reality.Features psychophysiology of perception has specific demands to visual solutions and placement of text, brightness, font, frame rate, music, color and form. An important factor is the perception of brand advertising. It is important to define the optimum combination to get the best emotional impact.Perception of different things associated with mental properties of people relatively predictable. A positive attitude is achieved if a consumer needs the product needed for work or pleasure, if it enriches and ennobles, updates anything in his/her inner world or the external environment, etc. Unconscious fears, moral values, the experience of individuals must be taken into consideration because they have a significant affect on the perception of an item, significantly. Therefore, it is a very difficult task for a company to create a positive perception of the image, with the exception of a negative.Careful brand management seeks to make the product or services relevant to the target audience. Brands should be seen as more than the difference between the actual cost of a product and its selling price; it represents the sum of all valuable qualities of a product to the consumer.The third chapter is devoted to brand management. It details on the steps of building a new brand. A very important step in marketing a brand is to identify the target audience before creating the logo and lettering in relation to marketing. This is because different age groups react differently to a variety of logo and lettering especially as so much is misrepresented by a variety of gangs and others using such material inappropriately. Still, if one can communicate the use of their product or service clearly, establish trust within the community, be that locally or globally, aim marketing at the right audience, build a base of buyers and customer loyalty and offer great customer service,Therefore, the other steps in building a brand, which a company can complete to help make the creation of such brand an easier task, include:finding a great logo and lettering to represent same, targeting the appropriate audience and placing a number of ads in as many online and offline advertising venues a company can find.In the beginning of brand building it is important to pay lots of attention and develop such parts as:The name. This is the first and most important decision that any company has to make. Too many charities have generic names that describe what they do but lack the ability to distinguish them from similar organizations in the mind.Of course there are some powerful brands with generic names. But these brands have been around for a long time and were first in the mind.The spokesperson. All brands need a spokesperson or a face of a brand, and having one is very important for the brand development.A celebrity with a personal connection to the cause of a brand can make an excellent face to promote a positive image and recognition.The position. Every brand needs a focus. For a product, which a company wants to make as inclusive as possible, this is a very difficult task. But the only way to get a brand into the mind is with a narrow focus. It is important to identify the target audience and develop the brand in accordance with the needs and requirements of the potential customers.The enemy. Every strong brand needs an enemy. But strong brands are built by figuring out who the enemy is, and what the enemy stands for, and then building a brand that stands for the opposite.For example, Mercedes cars are big and comfortable, that is why BMW positioned itself as the ultimate driving machine with smaller, lighter, more-nimble cars. Listerine is the bad-tasting mouthwash, so Scope positioned itself as the good-tasting mouthwash. Home Depot is messy and male oriented, so Lowe’s positioned itself as neat and female oriented.PR. PR builds brand. The face of a brand needs to spend the majority of his or her time doing PR.Public relations are the practice of managing the spread of information between an individual or an organization and the public. Public relations may include an organization or individual gaining exposure to their audiences using topics of public interest and news items that do not require direct payment. The aim of public relations by a company often is to persuade the audience to maintain a certain point of view about a concept, like positive image of a brand. PR employs messaging is the process of creating a consistent story around a product or service. Messaging aims to avoid having readers receive contradictory or confusing information that will instill doubt in their purchasing choice or other decisions that have an impact on the company.Color and logo. Any brand can benefit from the use of a strong, singular color they can own in the mind. While developing a company logo design one should realize that a brand identity creates an expectation, a promise of quality. It can be used to define the perception that the audience has about the organization and its products. A company logo outlines the credibility, professionalism, values and ethics of an organization. Professionally crafted identity can also help project a more credible, professional corporate image, increasing consumer confidence and awareness.A company logo is the foundation stone for a company’s brand establishment. A carefully managed and well-implemented brand identity program will help carry the company’s message to the targeted audience. Along with the brand mark, typography, color palette and other visual elements, specific directions should be considered to manage your visual communication materials. A unique professional brand identity is extremely instrumental in creating a powerful measurable impact on the target audience while visually conveying the inherent strengths of the organization.The study also shows the important elements to be considered when building a brand, such as:quality, first-mover advantage, internal marketing, positioning, repositioning, communications and long-term perspective.Quality is an important ingredient of any brand. It must be consistent. If a brand with a good reputation stops delivering the quality the company might face a great loss in profit and difficulties in getting back the customers. Research confirms that, statistically, higher quality brands achieve a higher market share and higher profitability that its inferior competitors.Positioning of a brand occupies in the minds of consumers. Strong brands have a clear, often unique position in the target market.It can be achieved through several means. Successful positioning is the combination of brand name, image, service standards, product guarantees, packaging and the way in which it is delivered.Repositioning takes place when a brand tries to change its market position to reflect a change in consumer’s tastes. This is often happens if a brand has become outdated, perhaps because its original market has matured or changed.Communications also play an important part in building a successful brand. Communications include all elements of the promotional mix need to be used to develop and sustain customer perceptions of positive feelings to a brand name. Initially, the challenge is to build awareness, then to develop the brand personality and reinforce the perception.The first-mover advantage means that it is possible for the first successful brand in a market to create a clear positioning in the minds of target customers before the competition enters the market. It is important to build a strong image of a brand before any competitors appear.Long turn perspective leads onto another important factor in brand building-the need to invest in the brand over the long-term. Building customer awareness, communicating the brand’s message and creating customer loyalty takes time. This means that management must invest in a brand, perhaps at the expense of short-term profitability.Finally, management should ensure that the brand is marketed internally as well as externally. It means that the whole business should understand the brand values and positioning. This is particularly important in service businesses where a critical part of the brand value is the type and quality of service that a customer receives. For example:the brands that customers value in the restaurant, hotel and retail sectors. It is likely that the management of the consumer’s favorite brands invest heavily in staff training so that the face-to-face contact that you have with the brand helps secure your loyalty.The second part of the third chapter is devoted to promotion of a brand. Promoting a brand is one of the ways that can help to build a business quickly. If a brand name has been established it is important to create brand awareness and, eventually, brand loyalty. Customers will pay more for brand names that they know and trust. Promoting a brand will increase profits and repeat sales. Promoting a brand is all about repetition and getting the message about the products out to the masses. A company needs to attract the attention of the customers so they will remember the brand and hopefully make a purchase. That first purchase is very important since it will show the qualities of the products or services to the costumers, which will determine if they will repeat the purchase. Repeated purchases promote trust and loyalty so a company can have loyal customers.Pulling consumers to a brand through great services that warrant future visits is important. Great services are also a great way to promote your brand.Maintaining the high quality products can attract consumers to a brand. Perfecting products will lead to repeated purchases and great reviews. As well as great customer service can make a product distinguishable and more likely for customers to come back to the business. Consumers that enjoyed customer service will most likely come back for repeated purchases even if the products or services are average.The study also describes the ways of promotion, like billboards, brochures, commercial, online advertising, print ads in magazines and newspapers, radio ads, signs, flyers and websites.The first step is to define potential customers in the geographic area served by your business. It is important to conduct some surveys and interviews to define which means of advertising will reach the potential customers. Like newspapers they read, radio stations they listen to, whether they use discount coupons or respond to direct mail.When a company knows which audience it want to reach and where it want the information to appear, they must look at the various methods of advertising available to this certain company. Advertising methods differ according to medium, complexity, target audience and cost. Some forms of advertising are more effective for a home-based business than others.Newspaper advertising can be effective for a small business. A relatively large number of people can be reached through a classified ad. Displaying ads are more costly and should be placed in the newspaper section read by the market. The cost of the ad will vary according to the circulation areas and the frequency of publication.Direct mail while initially expensive can be economical in the long run because it delivers specific information in a personal way to large numbers of people. If a company operates a mail-order business, direct mail advertising is especially appropriate because it helps to reach the target your advertising. Direct mail can be used to distribute letters, promotional give-aways, discount coupons and brochures.Brochures can be expensive but they are essential for any business for which the prospective customer needs detailed information about the qualifications and expertise of the owner and the services and products offered. More information can be supplied in a brochure than would be practical for a classified ad. Brochures can be mailed, distributed door to door or given out at community events and trade shows.Yellow Page directories should not be overlooked as a means of advertising. Every person with a telephone has a copy of their local phone book with business Yellow Pages. Directories are one of the most widely used forms of advertising. The telephone company advertising staff will give you help in designing an ad that will present your business in an effective manner. It is necessary to be aware that directories are published at various times of the year. A home-based business may wish to omit the address from the ad. Phone calls can be screened and clients can be scheduled so the neighborhood is not disrupted by an increased flow of traffic.Business cards are another inexpensive way to inform the public about your business. They are easy to distribute at meetings, upon the completion of a job or during networking. It might be reasonable think of the business card as a "mini-billboard." It should contain the name of the business, the name of a contact person, the complete address, the complete phone number and an appropriate slogan or description of the business.Promotional gimmicks are inexpensive give-aways that attract attention. For example, pens inscribed with a company logo, balloons with a business name or t-shirts can be used to promote any product or service.The third part of the chapter3researches the ways to promote a brand on a global scale. Branding involves what people think about the business and the products. It is important to think of a brand as a reputation. Building a reputation in any new market, including overseas, involves a first impression, which comes from the initial interactions someone has with a company, products, and services. The following steps are described in building an international brand:First, it is important to make sure that a company has a market, because the proven success with the current target audience doesn’t automatically mean that the new target will connect in the same way with the same products or services.The second important step is making sure that the company can deliver the product or manufactured within the new area of distribution all over the new market. Import and manufacturing laws vary from country to country. That is why making sure the products reliably and consistently available to the new target markets is essential, as well as investigating the local laws.The next step is re-examining the business and product names. In choosing a name for the business or product, it is necessary to be culturally sensitive it there are intentions to spread the product into foreign markets, to make sure product names make sense to customers in the new markets, both in English and in the local translation.It is important to research the new foreign markets, and perhaps engage the help of a local firm or representative, being sure to note what the competitors are capable of.Also it is important to ensure that your customers’experiences with the product, the business, and staff are positive. That extends to how a company delivers the product, product quality control, how service is delivered or structured.In branding, one bad customer experience often resonates longer than one good experience. A company might consider developing an employee manual; investing in online training for the staff.Expanding a product globally is a difficult task. It is important to build a positive image with the brand.The research paper includes many examples of successful brand management and branding strategies.The fourth chapter explores the practical approach to brand promotion. Here we describe the useful ways of promoting in a curtain field of business, attracting new customers and building their loyalty. There are also the new idea of enterprise expansion and increase the number of customers.The fifth chapter sets a vivid example of successful brand management and promoting.Procter&Gamble Co., also known as P&G, is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, United States, founded by William Procter and James Gamble, both from the United Kingdom. Its products include pet foods, cleaning agents, and personal care products. Fortune magazine awarded P&G a top spot on its list of "Global Top Companies for Leaders", and ranked the company at fiftee... |
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