Companies are subject to constant change. If we look at the past decades, markets have become narrower, i.e. fragmented into smaller and smaller segments, and at the same time more transparent for those who demand them, as a result of mergers, internationalisation and globalisation in conjunction with the enormous growth of Internet technology. For suppliers, this has increased the intensity of competition, which has led to a large number of different products whose life cycles are becoming shorter and shorter, and thus to new products and variations coming onto the market at ever shorter intervals. It cannot be expected that this market behaviour will come to a standstill in the future.
In their micro-environment, companies react as a result of a systematic marketing management process with, among other things, advertising as a classic marketing tool to inform target groups about their product and to differentiate it from the multitude of competing products. Since communication takes place simultaneously by many companies, the large amount of information creates an information overload on the demand side.[1] The consequence is often that a product-related unique competitive advantage, also known as a Unique Selling Proposition (USP),[2] is communicated but the target group is not reached or is reached only to a small extent, and thus perception is limited and not very promising.
More and more, therefore, brand management is coming to the fore. By means of brand identity and brand awareness, a lasting brand image is created and anchored in the consumer’s mind over a long period of time. This generates a special USP, so to speak, which can also withstand a flood of information[3].
Sattler and Völkner also describe the value-based significance of brands in the company value and equate the brand or brands of a company to an asset.[4] The basis for this classification is a survey conducted by PwC, Sattler, GFK and the Markenverband in 2012 with the result that over 90% of the companies surveyed consider brands to be one of the most important factors influencing the success of a company.[5] At the same time, Sattler and Völkner also mention flop rates in the context of brand design and thus point to risk factors which, in turn, have a negative influence on the success or value of a company, possibly with far-reaching consequences for the continued existence of a company.[6]
Companies are therefore required to implement or refine or deepen the brand concept and to implement the brand strategy specifically selected in a process, taking into account the possible opportunities and risks.
[1] Cf. Meffert et al. (2015), p. 569
[2] See Reeves (1961), in: Becker (2013), p. 248
[3] See Esch (2014), pp. 16-18
[4] Cf. Sattler / Völkner (2013), p. 21 ff.
[5] Cf. PwC et al. (2012), in: Sattler / Völkner (2013), p. 22
[6] Cf. Sattler / Völkner (2013), p. 96 ff.
I will gladly send you the detailed bibliography on request.
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