Benefits of Brands from Company Perspective

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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.
 
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.

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