Marketing Management Outline Example | Topics and Well Written Essays - 1250 words

Marketing Management - Outline Example It is highly essential to understand the needs and the preferences of the customers and this is done by integrating brand strategies. Having a strong brand is invaluable since it is a promise to the customer and today branding has become a foundation for every company in marketing communication. (Kashani & Turpin 1999). Reasons why companies develop their core products into brands 1. Memorability – a brand name serves as a source of reputation for the company and besides an effective company name it also helps in reinforcing the identity to the customers which further makes them do more business with the company. It comes with a distinctive behavior or a unique color combination. 2. Loyalty – customers are more likely to purchase a brand with which they have positive association and experiences and the customers who are bonded with a brand also purchase other items sold by the same brand. 3. Familiarity – branding also has an impact on the people who are not the customers of the company and familiarity induces liking because of which people often recommend a brand to other people also. 4. Premium price and age - instead of dealing with price-shoppers, there are always buyers available who are willing to pay more for a brand compared to its competitors. 5. Extensions – a brand name which is well known amongst the people can also be used to sell new products. 6. Equity of the company rises – a company that sells branded products is sold at a higher price than the other companies that sell non-branded products and services. 7. Marketing expenses are low – money is always required to create a brand but once it is created, marketing expenses eventually reduce. 8. Lower risk for consumers – people often choose a branded product over a non-branded product when making a purchase decision. Brand valuation methods A number of brand valuation methods are used by the companies and every method has its own advantages and disa dvantages. Some of the main brand valuation methods are mentioned below. Income based brand valuation methods 1. Relief from royalty method – this method is based on the amount the owner would have to pay in order to get the brand licensed by a third party. In order to capitalize the future branded cash flows, discounted cash flow analysis is used. 2. Excess-earnings method:Â  earnings above profit are calculated to attract investors on the basis of the value of the assets while the excess amount is attributed towards the brand. 3. Price premium method:Â  this method of brand valuation