Companies often create a brand for products, which typically is a special name or picture related to the goods. Over time, companies can establish brand equity as consumers become familiar with certain goods and rely on the products’ quality and usefulness. Managing brand equity is then necessary for a company to ensure that consumers remain loyal to that brand of goods. Different methods for managing brand equity include copyrights, patents or trademarks, the development of a business strategy and the recognition of different market stages to properly manage products. These activities can often help a company guide its products through even the most difficult economic times.
Manufacturing companies often develop specific goods to meet consumer needs. Before the creation or release of such goods, a copyright, patent or trademark might be necessary to protect the goods from competitors. These intangible assets will prevent a competitor from directly copying the product or the production methods to create goods, in some cases. Managing brand equity might demand that these legal protections be taken to prevent competitors from infringing upon the company’s product or name to lure customers toward a different product. Certain types of goods will usually qualify for each of these protections.
Managing brand equity will also lead to the development of a business strategy. The strategy will start with the ability to purchase and use certain quality materials to produce finished goods. After the company secures its necessary production materials, it must define production methods and inroads for getting the products into the marketplace. Written strategies might also include ideas or activities that are necessary to prevent competitors from overtaking the company’s market share. Managing brand equity usually is a full-time process for a business.
Like any other business process, managing brand equity demands the recognition of various business stages in a market. A growth stage typically means few competitors and the ability for a company to charge higher-than-average market prices. This stage evolves into a competitive or turbulent stage in which more competing products enter the market from other companies. The maturity stage indicates that supply and demand typically are at their equilibrium, with the market potentially leading to a decline in demand. These latter two stages often mean lower profits because of wider product availability.
Defining the previous stages in a market can help a company manage its brand equity successfully. Different activities are necessary to achieve success during each stage. For example, blanketing the market during a growth stage allows for the best reach in a market. During competitive and mature market periods, a company usually must protect its market share through aggressive business campaigns. Companies often survive these market periods through strong customer loyalty that was created during the growth stage.
