Branding offerings is a responsibility of marketing managers. A brand name is any word, “device,” (design, sound, shape, or color), or combination of these that is used to identify an offering and set it apart from competing offerings.
The major managerial implication of branding offerings is that consumer goodwill, derived from buyer satisfaction and favorable associations with a brand, can lead to brandy equity – the added value a brand name bestows on a product or service beyond the functional benefits provided. First brand equity provides a competitive advantage, such as the Sunkist label that signifies quality citrus fruit and the Gatorade name that defines sports drinks. A second advantage is that consumers are often willing to pay a higher price for a product or service with brand equity. Brand equity, in this instance, is represented by the premium a consumer will pay for one brand over another when the functional benefits provided are identical. Duracell batteries, Coca-Cola, Kleenex facial tissues, Louis Vuitton luggage, Boise audio systems, and Microsoft software all enjoy a price premium arising from brand equity.
Kerin, R. & Peterson, R., (2013). Strategic Marketing Problems, Pearson, pp. 141-142.
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