Excerpt of further issues topics:
Brand Equity and Brand Strategy,
Brand Equity and Brand Diffusion, Brand Equity
and Company Success, Brand Equity and Sales and
Acquisition of Brands or Companies, Brand Equity
and Marketing Investment
Brand Equity and Brand
Schmid-Preissler, SchmidPreissler International
We often experience, that
in difficult times the marketing budgets are in
first place when it comes to cutting costs.
Investments in Research & Development as well as
in Brand Marketing are often disproportionately
affected, when budgets are cut. Last but not
least, because according to German labor laws,
it is in general easier to cut budgets than to
cut jobs. And this happens, even though the
importance of brand marketing for market success
has been long establish and is no longer a
Brand marketing creates trust with the customer.
It serves for orientation, it turns one's
attention to what is new, and it points to the
range of products on offer. If this orientation
and the trust communicated through the company
are missing, it is reflected in consumption and
more so than the general economic situation
would indicate. The old German advertising
adage: „He who does not advertise dies!“ is
currently coming true for many brands and
businesses who have disproportionately curtailed
their marketing expenditures.
The restraint of many customers, when it comes
to purchasing cannot be directly attributed to
economic hardship but is rather caused through
the insecurity and the lack in orientation on
the part of the consumer. Domestic demand is
stagnating and growth that is not export induced
is holding off. Partially reduced marketing
budgets are in many respects fatal, because the
consequences pertain not only to the business
itself, but also the consumer climate and
indirectly even the economic climate.
Of course, people nowadays need neither
instruction nor seduction. The consumer of today
is enlightened, sensitive, looking for the
individualistic and is sure as never before when
it comes to knowing what he/she wants and what
he/she does not want. What the people do want is
communication, dialogue and they want clarity
and dependability. Brand marketing can offer all
The tasks brands have to solve in the future, is
to communicate immaterial values, which offer an
unmistakable identity to products. With their
personality they escort products and they create
a bond between the products and the customer.
All this cannot be achieved with cuts in
Only consequent brand marketing secures the
value of a brand and offers the ability for
further development of brand advantages to
companies with brands.
It is not always easy to make an always and
forever valid statement in regards to the
contribution brand marketing is making to the
corporate success. However, there are ways to
establish what brand marketing is able to
achieve. Prerequisite for this is, that the
means used for brand maintenance and brand
support are subject to a thorough verification
of results and these results are displayed in
the calculation of the products.
It is not enough to speak in general of having
spent a certain percentage for marketing.
Marketing funds should not be seen as
expenditures, but rather as investments which
are based on the value of an object, just like
it is with other assets.
For the future, successful brand marketing has
to be set up in a way, that the value of the
brand is on center stage and thus makes it
possible to determine the return-on-investment
and to allocate it to the brand.
A well developed and managed brand, whose value
is exactly determined, constitutes an asset for
the business, which needs to be interest-bearing
and thus ensures earning power for the company.
It is imperative to always keep an eye on the
brand to utilize ascertainable reference values
for the calculation of the market value.
With the SchmidPreissler Brand
Equity+Performance© Program, we have developed a
program that calculates the monetary brand
equity in the sense of a working capital, which
aims at a return-on-investment of the brand
equity. In case of questions or if you require
further information, I can be reached at +49
8022 91 78 22, Dipl. Vw. Christina