Brand Asset Management by Scott Davis discusses the development of a brand image that sells within the modern market. Brand asset management is the inherent value organizations gain by having a proper image and brand for both the company and the market. Ensuring that the brand meets customer expectations is one way in strengthening your marketing prospects.
A brand is the forward face of the company that comes with significant competitiveness. According to the book 72% of customers will pay a 20% premium on their brand, 50% a 25% premium and 40% of customers will pay up to a 30% premium. This makes developing a brand a very lucrative endeavor.
- Developing stronger brands can lead to some of the following benefits:
- Loyalty that drives business.
- Brand-based price premiums that offer higher margins
- Strong brands that lend credibility to new product releases
- Greater shareholder and stakeholder returns
- Clear, valued and sustainable point of differentiation relative to competition
- Clarity in internal focus and brand execution.
- Forgiveness when a company makes a mistake
- 70% of customers use brands to guide their purchases.
Developing strong brands takes some time. It is processes of creating the right image for the company by having commitment to the right values. The book will help highlight the concept of brand pictures, brand asset management strategies, and supporting a brand management culture. It is a process of creating an external image by focus on internal principles.
Davis, S. (2002) Brand Asset Management. San Francisco: Josey-Bass