February 15, 2020 at 08:10 #4831
Source of product added value (Source of Added Product Value)
The next function of brand image is as a source of product value added. Marketers recognize that brand image not only summarizes the experience of consumers with products from the brand, but can really change that experience. For example, consumers are proven to feel that food or drinks from their favorite brands have a better taste than competitors if tested unblinded than if tested blindly taste tests (Allison & Uhl, 1964). Thus brand image has a much stronger role in adding value to products by changing product experience (Aaker & Stayman, 1992; Puto & Wells, 1984).
Corporate Store of Value
The brand name is a store of value from the investment costs of advertising costs and the improvement of product quality that accumulates. Companies can use this store of value to convert strategic marketing ideas into long-term competitive advantages. For example, the Hallmark brand benefited from the decision made during 1950 to sponsor several high-quality television programs specifically each year.
Strength in product distribution (Power Channel)
Meanwhile, brand names with strong images function as both indicators and strengths in distribution channels (channel power). This means brands not only play an important role horizontally in dealing with their competitors, but also vertically in obtaining distribution channels and have control, and bargaining power over the requirements made by distributors (Aaker, 1991; Porter, 1974).
For example, the Coca Cola extension brand strategy can be said to accomplish three functions at once. Extension of market entry permits at a lower cost, inhibits competition by controlling shelf space, and can also provide bargaining power in terms of trade negotiations, because Coca Cola is considered to have the power to increase sales.March 13, 2020 at 09:50 #4922
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