CHAPTER
TWO
LITERATURE
REVIEW AND THEORETICAL FRAMEWORK
2.1
Concept of Branding
Branding represents one of the core marketing
practices that emphasizes the continuity and connectedness of an organization with
its external environment of which customers are important constituents Wilson,
(2003). Through branding, organizations of different sizes are able to create,
nurture and innovate their market- based assets. By creating market-based
assets perceivable by the consumer, organizations are able to nurture perceived
brand value and consumer brand equity, which in turn create profitability for
the organization. Brand therefore, represents an important promotional tool or
determinant both of the effectiveness and ability of the firm to link its
internal and external environment successfully Kapferer (2008).
Today the primary
capital of many businesses is their brands. For decades, the value of a company
was measured in terms of its real estate, then tangible assets, plants and
equipments. However it has recently been recognized that company’s real value
lies outside business itself - in the
minds of potential buyers or consumers. “A brand is both, tangible and
intangible, practical and symbolic, visible and invisible under conditions that
are economically viable for the company Kapferer,
(1986).
Brands are built up by
persistent difference over the long run. They cannot be reduced just to a
symbol on a product or a mere graphic and cosmetic exercise.
A brand is the signature on a constantly
renewed, creative process which yields various products. Products are
introduced, they live and disappear, but brands endure. The consistency of this
creative action is what gives a brand its meaning, its content, and its
characters Holley, G.J. (2001).: creating a brand requires time and identity.
2.1.1 Strategic
Branding Process
Essentially, strategic branding process involves the
same principle as in larger organizations. However, the process of branding
with its attendant scope for basic techniques, the discipline of putting
systematic planning in place, and rigorous monitoring at implementation stage
and beyond, all require an appropriate focus on the scale and degree of
complexity suitable for individual organizations. Strategy branding process is geared
towards creating and nurturing sustainable competitive advantage. It consists
of “the development and maintenance of
sets of product attributes and values
which are coherent, appropriate, distinctive, protectable and appealing to
customers” Murphy, (1992). In this context, strategic branding
process is a practice which organizations can successfully build upon and
strive for fresh challenges.
By building upon inherent tacit knowledge, product,
service and process within a firm, brand may serve as a promotional tools for
enhancing and achieving marketing objectives of an organizations.
The argument for
increasing the relevancy of strategy branding process irrespective of organizations
size can be based on three main reasons. Firstly, as the crucial challenge for
creating a capacity for continuous technological and innovative renewal deep
within the company becomes fast paced Hamel and Prahalad, (1994), brands’
capacity to influence, and mould the plasticity of demand, is more relevant and
appropriate for organizations. Not only because the influence of branding is
more apparent in consumer insistence for specific brands but also that the
identification of brand ‘name or trademark’ which fuses with the ‘identity
of the firm’ Penrose, (1995) is emerging as a significant competitive
factor on its own.
Secondly, an
established brand enables organization to introduce innovative and new product
offerings into the market place with a better chance of success than would have
being otherwise possible without an established presence in the market.
Furthermore, the
presence of a prior brand in the market presents an opportunity for a
comparative assessment of any new offerings with the firms previous known
brands, this enables consumer to make confident, purchase decision about the
latter.
Thirdly, another,
positive association that a strong brand could add to the organization is that
‘brand’ can be very difficult for competitors to copy and thus represents a key
sources of immutable assets for the organization. This sort of immutable association also
represents a strong source of intellectual property for companies, as well as
source of sustainable growth Gregory, J.R. & Wiechmann, J.G. (1997).
The American Marketing
Association’s (AMA) definition of a brand is “a name, term, sign, symbol, or design,
or a combination of them, intended to identify the goods and services of one
seller or group of sellers and to differentiate them from those of competitors”.
Within this view, whenever an organization creates a new name, logo, or symbol
for a new product, it has created a brand, Keller, (2003). He recognizes,
however, that brands today are much more than that. As can be seen, according
to these definitions brands had a simple and clear function as identifiers.
2.1.2 Strategic
Branding Characteristics
With
the volume of competition that businesses face in most industries, it’s never
been more important to stand out and develop a unique identity and value
proposition through strategic branding. While it’s obviously important to offer
a quality product or service, effective branding is often at the heart of the
companies that thrive.
According
to Jerry McLaughlin
(2009), “brand is the perception someone holds in their head about a
product, a service, an organization, a cause, or an idea. Brand building
is the deliberate and skillful application of effort to create a desired
perception in someone else’s mind.” Below are some characteristics of strategic
branding;
Audience
Knowledge: The best brands have a thorough
understanding of the demographics of their target market, what their interests
are, and how they communicate - trying to appeal to everyone (ie, ignoring the
concept of a target market) can be counterproductive, causing a company’s brand
to become diluted.
Uniqueness: For
instance, Apple has become known worldwide for their innovative products and
minimalistic, aesthetic appeal. Creating an identity within a niche doesn’t
demand a revolutionary idea. It simply needs to have one special thing that
separates it from the competition. In reality, it’s possible to be “a one trick
pony” as long as that trick is really good.
Passion: While
it’s certainly possible to build a brand in the short-term without passion,
it’s almost impossible to sustain it in the long run. That passion leads to
enthusiasm and genuine joy, which is infectious.
Consumers often become just as
enthusiastic about a product or service, leading to word of mouth advertising
and referrals. Passion also helps businesses persevere through inevitable
setbacks.
Consistency: When consumers come
back to a business for repeat sales, they usually expect to receive the same
level of quality as they did the first time. No one wants to deal with a
company they can’t rely on for consistency. With so many industries being
saturated with competitors, inconsistency is often enough of a reason for
consumers to take their business elsewhere.
2.1.3
Purpose for strategic Branding
Purpose
for strategic branding is to set out how a company intends to
change its products and services for the better. Its role is to unite customers
and culture alike in the pursuit of that intention. It’s a statement of belief,
of hope, of pursuit. It’s born of a wish to see the organization put to rights.
First and foremost, a
purpose for strategic branding should never be developed in isolation. It
should involve the senior leadership team to start with, and then be socialized
for discussion. The discussion itself shouldn’t revolve around the words
(because that quickly becomes semantic nit-picking). It should focus on the passion, on the biggest
belief you share and on the implications of holding that belief for everything
you do.
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