MARKETING AND BRANDS
Coca-Cola is an example of high value brand. Brands are among the most important assets of a firm. It takes a huge amount of resources over along period of time to build strong brands in the marketplace. A strong brand has a loyal customer base that stick to the brand in good and bad times. A strong brand also commands a high acceptance rate in the market place at a premium price compared to weaker brands. Former chairman of Quaker Oats Ltd., stated, "If the business were split up, I would take the brands, trademark and goodwill, and you could have all the bricks and mortar - and I would fare better than you".
Brand equity has been defined as a set of brand assets and liabilities linked to a brand. It is the name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm's customers.
Brand equity thus refers to the differential effect of brand knowledge as a result of the marketing of the brand. Brand knowledge, in turn, consists of brand awareness (brand recall and recognition) and brand image or associations. One of the most important associations is quality. Brand management therefore includes the key tasks of selecting a viable brand name, surrounding the brand with appropriate symbolism and associations, and enhancing consumers' perceptions of quality.
Brand knowledge is conceptualized as consisting of a brand node in memory to which a variety of associations are linked. The relevant dimensions that distinguish brand knowledge and affect consumer response are the awareness of the brand. This is in terms of brand recall and recognition and the favorability, strength, and uniqueness of the brand associations in consumer memory. Brands exist in...