Before long, summer arrived at Ô Sè hermitage. Here and there, heavy showers appeared between days of scorching sunshine. Tonight, too, was just past the full moon. The moon had disappeared, leaving a reddish sky and a faint veil of night mist just enough to soften the sultry air.
On the doorstep, by candlelight, Lưu Lãng Sư and Lệnh Hồ were still awake. The old man and the young man sat quietly listening to the little stream burble, contentedly breathing in the cool, fresh air and… Con Mèo cigarette smoke.
After quite a long while, Lưu Lãng was heard speaking again to begin the story:
‘Lately, there has been renewed talk in Ó Cốc about brands and trademarks. What is your view, young hero?’
Lệnh Hồ interrupted his wandering thoughts and hurriedly replied:
‘Ah, this... I see that we are discussing basic concepts, yet we still cannot seem to reach a consensus. First there is textbook theory, then real-life stories get thrown in, and everything becomes a muddle. Still, it reveals a real problem: a lack of consistency.’
“Yes… They may not disagree because of ego. The difficulty is that some need to understand ‘why,’ while others wonder ‘how.’ Their scope and thinking differ, so they sometimes emphasize issues the other side hardly cares about…”
Sensing a hint of worry in Lãng Sư's voice, Lệnh Hồ prompted:
‘Since that is the case, Master, please summarize everything from beginning to end so that your student may gradually grasp it, first understand it himself, and then share it with others according to his abilities and circumstances.’
‘Ah...’ The old monk smiled gently, then reached out and handed the young man an old, faded sheet of paper, as though he had been waiting for this moment all along.
‘Young hero, take a look. These are the world's ten most valuable brands in 2002, measured in billions of US dollars. The figures are rather old, but you can still use them for reference.’
1 Coca-Cola ($69.6)
2 Microsoft ($64.1)
3 IBM ($51.2)
4 GE ($41.3)
5 Intel ($30.9)
6 Nokia ($30.0)
7 Disney ($29.3)
8 McDonalds ($26.4)
9 Marlboro ($24.2)
10 Mercedes ($21.0)
Source: Interbrand; JP Morgan Chase, 2002
‘Young hero, have you ever wondered why brands such as Coca-Cola, Microsoft, IBM, or Disney seem to achieve global marketing success so easily while so many others must work tirelessly? Why do we, as customers, feel so loyal that the mere sight of a logo makes us devotedly reach into our pockets to buy?’
‘So what is the meaning of a brand, Master?’
“You must begin by asking ‘Why.’ A brand helps distinguish a company's products or services from those of its competitors. There is abundant evidence that customers will pay more for a strong brand and remain loyal to it. The key, therefore, is to understand what brands are and why they matter so much.”
“Mr. Mac Donald once summarized the importance of brands as follows:”
“…Factories do not generate profits; customer relationships do, and the company and its brand names sustain those relationships.”
“Companies that have invested in and protected leading brands are becoming increasingly prosperous, while others fall behind and fight over the meager profits left in commodity markets.”
‘So what is a brand?’
‘There is a definition as follows:’
“A name, term, sign, symbol, design, or some combination of these, intended to identify the products or services of 1 company or 1 group of companies and differentiate them from those of competitors.”
“InterBrand, 1 leading brand consultancy, offers the following definition:”
“A blend of intangible and tangible attributes embodied in a brand which, when properly managed, creates influence and value.”
‘At this point, I think we should also discuss three important terms related to brands, so that you, young hero, can understand them as follows:’
‘Brand Equity:’
‘Brand equity refers to the value of a brand based on the extent to which it commands strong loyalty, name recognition, perceived quality, and powerful product associations. Brand equity also includes intangible assets such as copyrights, trademarks, and relationships with distribution channels.’
“Brand image:”
“Brand image refers to the system of beliefs customers hold about a particular brand. Developing a strong one is essential, because a poor brand image makes success extremely difficult.”
“Brand extension:”
“Brand extension refers to using an existing brand name to launch a new or improved product in a new market segment.”
“Brands and products:”
“A brand can rarely be developed in isolation. It generally needs to belong to a product line or product group within 1 company.”
‘A product line is a group of brands closely related in the functions and benefits they provide. For example, the collection of desktop and laptop computers produced by Dell.’
‘A product mix refers to a collection of brands marketed by a business. Thus, a product mix may contain several or many product lines. Its width can be measured by the number of product lines a business offers. For an interesting example, young hero, visit Hewlett-Packard's (“HP”) website. HP has a broad product mix covering many segments of the consumer and business computer markets.’
“Brand management is an important part of any company's product strategy, especially for businesses operating in fiercely competitive consumer markets.”
…to be continued…
Source: OpenShare
