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Creating Brand Value

Globalization of commerce has forced businesses to rethink several aspects of their brand in order to remain afloat. One major concern for modern brands is the creation of value. Brands are now acutely aware that they must provide value from the beginning to the end of the customer journey. Moreover, brands must provide holistic value throughout the brand value chain to ensure they satisfy all stakeholders. Casey Schmidt in her article, “Designed to deliver – the powerful impact of following a brand value chain model” emphasizes that in order for all brands to create value and be successful, they must follow the four stages of the brand value chain model.

It is crucial that brands make a sound investment in their marketing program. They must do extensive research on product development to provide a quality product in the market. Brands must create relevant marketing communications such as advertising, sponsorship, and public relations. These activities create initial value. An example of an investment that creates value is Coca-Cola which spent 4.24 billion dollars in global advertising in 2019.

It is important for brands to place value on the consumer mindset. Brands must make their customers aware of their offerings and help them gain a positive perception of the brand. This will ultimately generate loyalty.

Brands need to look at their market performance. It is vital that brands understand the total effectiveness their brands have on the market. It is wise to examine a brand’s market share, expansion success, cost structure, and profitability.

Lastly, brands must ensure they are providing value to their shareholders. Brands must look at the value/price of their stock, and their price-to-earnings ratio.

These 4 areas of the brand value chain must be closely looked at by all brands in order to create lasting value.

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