The role of brand in marketing is brand marketing, which is mainly reflected in the following three points:
Three functions of brand building and brand marketing
Accelerate consumer purchasing decisions
BrandsThe primary function of the product is to facilitate consumers to choose products,Shorten the consumer purchasing decision process.
Choosing a well-known brand is undoubtedly a convenient, reliable and risk-reducing method for consumers.
Especially in the field of mass consumer goods,There are generally a dozen or even dozens of brands of similar products that consumers can choose from..Faced with so many goods and service providers, consumers cannot make accurate judgments by comparing the products and services themselves.At this time, the influence on the "perceived risk" of the product (that is, the psychological risk that may have adverse consequences) appears in the consumer's purchasing decision process.The size of this "perceived risk" depends on the value of the product, the uncertainty of the product's performance, and the consumer's self-confidence.In order to avoid risks, consumers often prefer products with well-known brands to strengthen their confidence in purchasing.The brand is the symbol of the product in the minds of consumers, it represents the quality and characteristics of the product, and at the same time it is the code name of the enterprise, which means the business expertise and management level of the enterprise.As a result, brands shorten the consumer purchasing decision process.
Increase brand value and profit
Creating a strong brand enables companies to enjoy higher profit margins.
In traditional market competition,When consumers form a distinct brand concept, price differences will become secondary.This is even more pronounced when different brands are given special personalities.
Research has shown that the average profit margin of a market leader brand is four times that of a second brand, while in the UK it is six times as high.High profit margins for strong brandsEspecially under the conditions of market downturn or price-cutting competition, it has played an important role.In fact, this advantage is not only due to the economies of scale we usually think of, but more importantly, it comes from consumers' recognition of the value of the brand's products, that is, the recognition of price differences.
production of intangible assets
A brand can transcend the life cycle of a product and is an intangible asset.
Except for a few products, the vast majority of products will not be accepted by consumers for long due to changing needs and competition.Generally speaking, products have a life cycle, which will go through the entire process from being put on the market to being eliminated from the market, including four stages of investment, growth, maturity and decline.
But the brand is different, it has the potential to transcend the life cycle.Once a brand has a large and loyal customer base, its leadership can last, even if its products have been improved and replaced.The Boston Consulting Group studied the market-leading brands in 30 product categories and found that "1929 of the 30 leading brands in 27 were still No. 988 in the market in 1895. Among these classic brands are ivory soap, Campbell's soup. and Gold Medal Flour".Like some of the famous overseas brands we are familiar with, they also have a long history.Such as Gillette (since 924), Marlboro (since 1886), Coca-Cola (since 1938), Nestle (since XNUMX).Similarly, many time-honored brands in China still have brand advantages in today's market competition, such as Rentang.
It can be seen that the concept of brand is much broader than the product itself.It can be adjusted as the market changes, and as long as it can keep up with market changes and consumer advancements, the brand can last for a long time by improving or innovating products and maintaining a consistent brand personality.
Also becauseBrands can transcend the lifecycle, so that the brand slowly develops from being attached to the product at the beginning to being relatively independent from the specific product, and allows consumers to accumulate recognition and preference for it for a long time, so that theBrandspossible as an intangible asset.It can also participate in market transactions as a commodity itself.
and,The relative independence of brand and product, which led to the emergence of brand extension,The same brand has many categories of products, the brand has become the core of the product.For example, when Wahaha produced children's nutritional solution, the brand name was only a part of the product, but until now, the Wahaha brand has undoubtedly become the commander of the company's products.