The functions of brands from a company’s perspective
“Investment in a brand is
hence investment in the
future and in a company’s
greatest asset.”
• A brand fosters brand and customer loyalty. Particularly strong brands
can establish the prevalence of premium prices on the market and soften
consumer reactions to price changes. Specifically brand-oriented
buyers – who are more concerned with brands than prices – are more
resilient when it comes to changes in the competitive scenario. This
decreased sensitivity to price changes makes them more valuable as
customers.
• The reduction in perceived purchasing risk lays the groundwork for a
relationship of trust, giving brands a role to play in lashing customers
to a company.
• Brands can counter the swelling ranks of trade because dealers stock
their shelves and Strong brands in particular keep sales levels and market
share constant and considerably lessen dependence on short-term special
promotions.
• A brand unlocks great potential in terms of licensing opportunities as
well, helping companies achieve plans for international expansion.
• Finally, brands also offer companies potential for honing a clear profileand overshadowing the
competition. Strong brands in particular can reduce
the risk that new product launches will flop and can be used as platforms
for successful brand stretching (also in terms of launches in completely
new product segments and sectors).
In this way, brands can help generate significant value for a company,
above all in market segments where brands have the upper hand. Thus
a brand – particularly a strong brand – represents sustainable value for
a company. Investment in a brand is hence investment in the future and
in a company’s greatest asset.
“Investment in a brand is
hence investment in the
future and in a company’s
greatest asset.”
• A brand fosters brand and customer loyalty. Particularly strong brands
can establish the prevalence of premium prices on the market and soften
consumer reactions to price changes. Specifically brand-oriented
buyers – who are more concerned with brands than prices – are more
resilient when it comes to changes in the competitive scenario. This
decreased sensitivity to price changes makes them more valuable as
customers.
• The reduction in perceived purchasing risk lays the groundwork for a
relationship of trust, giving brands a role to play in lashing customers
to a company.
• Brands can counter the swelling ranks of trade because dealers stock
their shelves and Strong brands in particular keep sales levels and market
share constant and considerably lessen dependence on short-term special
promotions.
• A brand unlocks great potential in terms of licensing opportunities as
well, helping companies achieve plans for international expansion.
• Finally, brands also offer companies potential for honing a clear profileand overshadowing the
competition. Strong brands in particular can reduce
the risk that new product launches will flop and can be used as platforms
for successful brand stretching (also in terms of launches in completely
new product segments and sectors).
In this way, brands can help generate significant value for a company,
above all in market segments where brands have the upper hand. Thus
a brand – particularly a strong brand – represents sustainable value for
a company. Investment in a brand is hence investment in the future and
in a company’s greatest asset.