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
issue will be published on September 1st, 2006
A New Brand Marketing
is in Demand
Schmid-Preissler, SchmidPreissler International
The market has changed
tremendously in the past few years. While
businesses and the media are complaining almost
in unison that consumers do not feel like buying
and thus try to find the reason for slow
business in the consumer and politics (VAT
increase). All the while other businesses are
doing so well that one must come to the
conclusion that we often lose sight of what is
going on and thus leave opportunities untaken.
The scenarios have changed radically. Turnover
in vertically organized fashion retail is
growing at a two-digit range, while ‘the
industry’ (and this applies to almost all
industries across the board) is suffering from
stagnation or even recession. Many have doubts
about the brand and ‘dream’ at the same time of
owning a brand like Armani or Prada.
Why is that?
The catalyst for the changes on the market lies
in the delayed effect of the change of values.
In other words, it lies in the changing
relationship of people to all that is material
and a new comprehension of consumption.
In the late 50’s, Ludwig Erhard predicted in his
book ‘Wohlstand für Alle’ (Prosperity for All)
that human beings are not creatures who could
find their mission in life in consumption. To
the contrary, once basic material needs have
been fulfilled, purchasing decisions are
influenced by other motivational structures than
those of ‘wanting to have’: Quantity gives way
to quality, need and want determine the segment
(Economy, PremiumEconomy, Premium and Luxury)
that the consumer uses. The book, the theatre
visit or the Nordic Walking class (immaterial
goods) compete increasingly with the new t-shirt
or the current fragrance.
The change in values is not just the result of a
new evaluation of values, but is in fact the
consequence of reflection. Since we know that
free enterprise is not only shaped by the
mechanisms of the economic cycle, but that in
any event the human exertion of influence is
decisive, we also know that the psychological
influence on the economic events are more
important than influences justified in facts and
What are these consequences?
Companies have to deal
more with their own identity. They must
occupy strong and sophisticated values for
themselves and also communicate them.
In the future, brand
leadership has to be viewed more
holistically. Communication in the sourcing
market, job market, capital market and sales
market and the social environment require
becoming more and more important for
businesses and thus more important for the
image of the business. Communications
budgets are going to move more and more from
product management to corporate
More than ever, qualified
brand marketing is a requirement. Classic
advertising alone is no longer enough.
In order to better finance a new brand
marketing, a paradigm shift is required. So far,
marketing budgets were based on sales or
earnings results. If business was going well,
budgets were well stocked. If sales and earnings
dwindled, out came the red pen. Sometimes they
sang praises of the brand and sometimes the
brand was degraded to a means to an end.
A new brand marketing must orient itself on the
brand equity and this value has to earn
interest. Only then will there be enough money
in the future to finance brand marketing. Brands
should no longer be misused as ‘secret reserve’.
Especially since they are the most important
asset of a business, whose core is brands.
The SchmidPreissler Brand Equity+Performance©
model is a sophisticated method to structure
data available in businesses today and to deduce
reliable data regarding the monetary value of
the brand and to be able to track changes in
regular intervals. Individually - for every