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David Koch
|
On
the
brandwagon ...
from
IBS
A brands true value extends beyond the product
itself to include the corporate reputation,
writes David Hawkins. What is a Ford, a Holden
or a can of Heinz baked beans? What does it
mean for a product to carry these brand names?
What relationship does the product or service
have with the end user?
|
When
it comes to international brands like Nike, Kelloggs,
or BMW, millions of dollars have been invested in
positioning their products. The value of the brand
is significant in generating sales.
Brand value was the catch-phrase of the 80s. Now the
focus is the relationship that the brand or corporation
has with the customer. For smaller organisations that
do not have the funds to create national or international
awareness, this trend is proving an extremely effective
marketing tool.
Bridge
the gap
The US car industry has discovered that the perception
of a brand is greatly affected by the post-sale service.
Millions of dollars can be spent building a brand,
but if the service gap is not bridged then the brand
value is quickly eroded.
In the US, car manufacturers are purchasing dealerships
in an attempt to gain total control of their brand
retailing. Ford and General Motors have instituted
elaborate - but quite different - brand management
systems.
A customer recently went to Mazda, as he had forgotten
the key code to his stereo system. The service manager
came out to assist, not a lackey but the head honcho.
Together they managed to work out the code. The service
manager then went a step further by reprogramming
the radio with the owner's favourite stations. This
is a classic case of a company that is building brand
value, not through the sale of a product, but by bridging
the service gap.
Using advanced computer systems, car companies are
enhancing their ability to understand, communicate
with and evaluate their markets. They are learning
how to manage the relationship so that the brand value
extends beyond just the product.
While this process can be applied to high-involvement
products like cars, the same approach is true for
fast-moving consumer goods and low-involvement product
categories.
Reinforce
the relationship
With fast-moving consumer goods and low-involvement
products the relationship is being built and maintained
with a wider market.
For instance, Uncle Toby's has invested in positioning
its brand as a wholesome, healthy alternative. The
investment is not in advertising, but rather in sponsorship
of athletes and sporting events.
These marketing tools do far more than promote the
product, a prerequisite of sponsorship of the 80s.
Now, they are carefully selected to ensure they reinforce
the relationship a consumer has with that brand.
Support
worthy causes
Corporate reputation, another word for brand value,
relates to the perception of a company by its different
audiences.
Creating a "trust bank" is an extremely worthwhile
exercise and often relied upon in a time of crisis.
A company creates a trust bank by having an effective
community relations campaign. On a local level, supporting
the local hospital, sports team or school, or holding
a charity or fundraising event on a national level
can build "brownie points" in the eyes of the community.
Brand value makes a significant contribution to the
purchase decision. However, the nature of the brand
value and the way it is being created is changing.
Historically, the perception of the brand has been
created through advertising.
In the 1990s, the product must fulfil or exceed the
promise made by the brand, but the service gap must
also be bridged in order to maintain the relationship
and build customer loyalty.
How valuable is your brand value or corporate reputation?
The answer lies with your customers. Ask them about
the relationship they have with your company or product.
The investment that you have made in building the
brand value is reinforced or lost in the post-sale
period.
The product must fulfil or exceed the promise made
by the brand.
