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
Short-term thinking of
profits and quarterly dividends – the „biggest
enemy“ of the development of brand equity.
Schmid-Preissler, SchmidPreissler International
Nowadays, many companies
commit themselves in their corporate policies
aimed at consumers to treat the environment
ecologically safe, to have an ethical and
morally irreproachable contact to vendors and
other partners on the market as well as offering
fair cooperation all around, just to name a few
However, where is the commitment to the brand?
Where is the commitment to protect and maintain
its equity, to nourish and increase, to make
sure the most important asset of a company has a
So far, most businesses summarize the
expenditures they transact for the brand under
‘marketing expenditures’. In general they assume
that thanks to the brand on the product, the
creation of value and ultimately profits are
going to be higher than they would be without
In other words: It is assumed that brands could
be important within the marketing process.
However, they are usually not allowed their own
Currently there is a tendency, which bears risks
for the long-term protection of brand equity,
namely the short-term thinking of profits and
quarterly dividends. More and more often we see,
that budgets for advertising and communication
are slashed in the erroneous belief, nobody
would notice. Control over distribution is
forgone for the sake of more stores. The
maintenance at the point-of-sale is being
downgraded. Image-marring rebate actions are
insufficiently opposed. After-sales service is
scaled down, just to name a few examples.
Businesses who integrate brand orientation into
their corporate policies strengthen the
foundation the business is built on.
Brand equity orientation is a reference to what
the turn of an era and the paradigm shift in
marketing amount to: Companies have to make
arrangements for visualization and realization
of brand equity, because only through brands
with acknowledged value, brand leadership can be
achieved or maintained. At all times and
everywhere net asset values of a company bring
about predominance on the market. The brand is
such a net asset value.
Only he/she who truly places a high value on
his/her brand in his/her mindset and conduct is
going to be part of the winners.