Marketing
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Introduction:
The article “The Best Global Brands,” by Gerry Khermouch focuses mainly on the importance of brand loyalty and a companys potential. In order for a company to succeed and have high profits, how the consumer perceives its name is key. This image is created by a number of different variables. When all of the variables are fulfilled by the product or company, the consumer is happy, thus creating a brand loyalty relationship. Many companies are trying to cut costs and/or reintroduce their old product as something new and improved.(Khermouch 2) This approach has failed many and now other companies are trying to keep prices the same by offering the same great product without cutting the corners.
Analysis:
1: Companies spend years upon years trying to build a name for themselves. Their name represents their products and is also represented by everyone who works for that company. Building a brand name with consumer loyalty is key because:
even during an economic slump, a consumer is more likely to purchase a brand name that they know and trust versus trying a new brand.(Khermouch 1)
In the eyes of the consumer, they are receiving a product with the same benefit either
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way. (brand name vs. off brand )(Khermouch 2)
New flavors, formulas, and packaging may spark slight interest for a short period of time, but the product usually isnt new or any different from the old product. (Khermouch 2) This tactic is not effective and has been proven not to work time and time again.
2: The consumer essentially controls the market in a sense. The consumer has the ability to choose when, how, and where they want to purchase a good or service. All of these factors can boost a companies sales with the right tactics and approach.
A strong brand name can boost sales and have a lasting effect for years to come.
Simple changes in the business climate or economy can impact sales greatly.
When the external environment is negative companies decide to cut production costs by:
-offering the same product by compromising the quality
-cut prices
-cut marketing budgets.(Khermouch 2)
All three of these options are not ones that will benefit a company, but rather keep it stable and in business until the situation gets better.
3: When the economy goes sour, these industries are most impacted:
-telecommunications
-finance
-travel
-luxury goods (cell phones, etc.) (Khermouch 2)
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4: During these hard