Q. The value of the brand, is based on the extent to which it has high street awareness, perceived quality, strong brand associations and other assets such as patents, trademarks and channel relationships” Kotler et al, 2005 With examples from at least two brand leaders evaluate the significance of this statement in creating value added products and services
Strong Brand Association, Patents and Trademarks
A. A brand is a method that is applied to products to create a contrast between it and other products of the competitors. Customers are more than willing to spend more on a good brand and will keep their trust in it. It is therefore of importance that suppliers as well as retailers to use and maintain a good product brand (Omber Osman et al. 2008). A brand can either be a name, a term a sign, symbol or even a design that is meant to separate a good or a service of an enterprise, which would consequently help to recognize it. The equity of the brand is related to the loyalty it has among the customers, the awareness it has achieved as well as its quality. The brand equity involves other touch less entities such as patents, trademarks as well as the relationships incorporated. In brand equity, there are five things that influence it, the name of awareness given to the product, the perceived quality that a customer benefits from using the product, the loyalty acquired by customers towards the product and to what aspect in the society is the product associated with.Companies such as Microsoft Coca-Cola, IBM, Apple, and many others like them achieve global success easily due the fact that they have a strong brand base. A name like Coca cola has a stronger entity and in consequent the market share it possess is much higher . On the other hand, consumer feels an attraction or loyal to brands that have a strong brand lineage and are more willing to reach into their pockets to buy their products. Studies have shown that brands with market share of 40% are known to make three times as much profit as those with only 10%. (Buzzell &Gale 1987) These are translated into prospects and share value. The role of a brand can be evaluated how it is branded, consumer learn about from past experience and understand which brand satisfies their needs. Therefore, reduces the decision making process and reduce the risk. One of the major reasons for branding it provides legal protection for unique features of the product. For example brand name— trademarks, manufacturing processes— patents and packaging– copyrights and design. They are different responses as result of consumer experience and knowledge about the brand. They have well known cases such as Volvo with safety and Harley Davidson with adventure.
Example
Volvo has had various safety patents 1944 the laminated glass were introduced in the PV model, 1958 Volvo developed the 3 point Safety Belt which became a standard to all Volvo vehicles introduced the booster seat in 1978 and many others safety inventions since its existence. On the other hand, Harley Davidson is a company founded in 1903 and has various patents that are in engine design comfort and storage. One o the most common are is the seat assembly. The rider seat has a forward end and a reward end having a support arm. Such an invention is strongly associated Harley Davidson brand.
Q. Zheitaml and Bitner (1990) suggest that an organisation’s success is determined by a combination of the level of service that can be provided and bonding with the customer. What strategies have to be adopted by an organisation to ensure that customers respond positively to the service provision on offer?
A. The quality of a service influences the success or failure of an organization. The services offered too much towards satisfying the customer’s needs. The factors that determine the quality of services are influenced by certain expectations by the customer, otherwise the standard of the service offered. It achievement is mostly based on the commitment offered by the customers at all the levels. In areas like hotels and restaurants, they tend to be involved in measures that will improve their quality of service (Dayang Nailul and Francine Rozario, 2010). Certain internal as well as external factors play a role in this. Managers are advised to be keen about the company’s trend in the business, any form of dissatisfaction among the customers is identified through the use of surveys which are as a result of the facilities present in the organization and used by the staff, an aspect in stance is the cafeteria. Brands are developed over a period “over influences on commercial stimuli such as promotion and availability” (Doyle 1999) Brand value is calculated upon the perception of the consumer on the maker of a product. The product gets some additional value other than the real price. Dynamic brands such as technology rely on evolution of the products to have a competitive advantage. Quality is measured by the response got from consumers. The need to launch new products ensures the leaders are approaching towards the consumers’ expectations. When they expect a new development the consumer will seek it elsewhere if the company they are loyal to does not produce it and consumers purchase trends are based on experience. Buying from other company could result to them transferring their loyalty as well if the experience is good. “Get there first”. Launching product after product is also like promotion thus ensures the company captures the attention of the customers at all times (Wright, 2006). This helps to build the bond of sellers to buyers as buyers perceive the sellers as responding to their needs. Buyers want to associate with value addition (Porter, 1996). These could be the same products but modified to carry additional functions; value addition could be through tangible or intangible parts. Microsoft could be launching a new version of Windows year after but the difference could only be speed of processing or capacity to handle data or a few features which to the person who is not keen may not even notice difference. But there have to remain leaders they have to fill the gaps which may entice new entries or be used by existing competitors.
Customers Measure Performance through:
Reliability and Responsiveness: The Company has to be a partner consumers can rely on to deliver what is needed when needed.
Assurance: Ability to inspire trust and confidence through well researched knowledge about consumer needs.
Tangibles and Empathy: appearance of the products or where the services are offered matter to the consumer. Empathy refers to the attention the company would give to an individual in case he/she had issues with a product. Companies have to keep up in response to customer expectations.
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