A:

A company's marketing efforts have a direct impact on sales and market share, but they are not the only factors that influence industry performance. A positive brand image is vital to business success, and a brand is much more than a familiar name presented through traditional advertising strategies.

A brand encompasses the consumer's complete experience with both the product and the company, making it a powerful tool for gaining market leverage. Apple, for example, built its brand on the passion and innovation of its founder, and it gained recognition for meeting the wants and needs of modern consumers.

Brand awareness obtained a fair portion of market share in the early days of personal computers, and it still takes a strong brand to remain a market leader in this field as technology advances. Apple upholds its positive brand image by connecting with consumers and continuing to meet their needs. Good business ethics and creative marketing campaigns also maintain the company's market position.

An integrated strategy for marketing and branding is the most effective at increasing market share. Marriott marketed its Renaissance hotel line as accommodations for business travelers with an interest in the culture and experiences a destination offers. The company built this brand image by creating an interactive website that allows visitors to explore local attractions near each hotel, a strategy that has earned the company a favorable position among the target segment of the market.

In some situations, a market may be primarily price-driven, meaning the company with the lowest product prices hold the largest share of the market. However, the power of branding and marketing is evident in these markets, too. Soft drink leaders such as Coca-Cola and Pepsi, for instance, consistently generate more sales than more cheaply priced competitors.

RELATED FAQS
  1. Why is brand equity considered an intangible asset?

    Brand equity is an intangible asset because the value of the brand is not a physical asset and is instead determined by consumer ... Read Answer >>
  2. What are some of the benefits of positive brand equity?

    Learn how having positive brand equity enables companies to make a higher margin on sales and spend less money on marketing ... Read Answer >>
  3. What are some examples of companies or products that have outstanding brand equity?

    Brand equity is the heart of reputation building for companies and products. With solid equity, the quality of a service ... Read Answer >>
  4. How much of the global beverage industry is controlled by Coca Cola and Pepsi?

    Examine the global nonalcoholic beverage industry, and learn what percentage of the market is controlled by the two major ... Read Answer >>
  5. How do name-brand products compete with their generic competitors?

    On April 2, 1993, Phillip Morris announced that it was cutting the price of its cigarettes to compete with the growing number ... Read Answer >>
  6. Why is social responsibility important in marketing?

    Drive consumers toward products and services by prioritizing social responsibility in marketing to enhance the company's ... Read Answer >>
Related Articles
  1. Small Business

    The Power Of Branding

    It's the ultimate economic moat, and we look at the approaches and effects of good and bad branding.
  2. Financial Advisor

    Why These Are the Most Valuable Brands of 2017

    A company's brand can be worth billions of dollars. Here are the most valuable global brands in 2017.
  3. Small Business

    Well-Established Brands Worth Billions

    We look at the most valuable brands in the world, and explain what makes them successful.
  4. Small Business

    How Companies Create A Brand

    We take a hands-on approach to creating a brand, and see what it can mean as an investor.
  5. Small Business

    Understanding Brand Identity

    A brand identity comes from visible elements, such as the company name, the design of its logo, its packaging design, and colors, tagline and typeface.
  6. Small Business

    Top 100 Most Valuable Global Brands 2016

    A look at the BrandZ 100 Most Valuable Global Brands Report
  7. Small Business

    9 Brands Resurrected Into Household Names

    All of these brands saw a dip in their popularity, only to have a revival to even greater heights.
  8. Investing

    Best Buy Betting On House Brands

    Best Buy uses its house brands strategically, but is this hurting the company or helping it to stay on top?
  9. Small Business

    6 Branding Tips For Small Business Owners

    One of the most important areas for all businesses to utilize is branding.
  10. Small Business

    Reinventing Brands: Makeover Or Move Over

    Brands undergo various changes to remain competitive. Discover those that changed and those that fell behind.
RELATED TERMS
  1. Brand Management

    Brand management is a function of marketing that uses techniques ...
  2. Brand Identity

    Brand identity is how a business presents itself to and wants ...
  3. Brand Equity

    The value premium that a company realizes from a product with ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business ...
  5. Mindshare

    The amount consumer awareness or popularity surrounding a particular ...
  6. Product Line

    A group of related products manufactured by a single company. ...
Hot Definitions
  1. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  2. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  3. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  4. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
  5. Inverse Transaction

    A transaction that can cancel out a forward contract that has the same value date.
  6. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
Trading Center