Brands - introduction
Introduction to brands
Take a look at the list below that shows the world’s top 10 brands in 2002 (as measured by value):
{Rank Brand Value ($ billions)}
1 Coca-Cola ($69.6)
2 Microsoft ($64.1)
3 IBM ($51.2)
4 GE ($41.3)
5 Intel ($30.9)
6 Nokia ($30.0)
7 Disney ($29.3)
8 McDonalds ($26.4)
9 Marlboro ($24.2)
10 Mercedes ($21.0)
Source: Interbrand; JP Morgan Chase, 2002
Why do companies such as Coca-Cola, Microsoft, IBM and Disney seem to achieve global marketing success so easily? Why does it seem such an effort for others?
Why do we, as consumers, feel loyal to such brands that the mere sight of their logo has us reaching into our pockets to buy their products?
The meaning of brands
Brands are a means of differentiating a company’s products and services from those of its competitors.
There is plenty of evidence to prove that customers will pay a substantial price premium for a good brand and remain loyal to that brand. It is important, therefore, to understand what brands are and why they are important.
Macdonald sums this up nicely in the following quote emphasising the importance of brands:
“…it is not factories that make profits, but relationships with customers, and it is company and brand names which secure those relationships”
Businesses that invest in and sustain leading brands prosper whereas those that fail are left to fight for the lower profits available in commodity markets.
What is a brand?
One definition of a brand is as follows:
“A name, term, sign, symbol or design, or a combination of these, that is intended to identify the goods and services of one business or group of businesses and to differentiate them from those of com ...