Benefits and disadvantages of branding

Benefits and disadvantages of branding In this article, I am going to introduce what is branding? Why does branding? and analyze both the advantage and disadvantage of branding. In addition, I will use some examples to support my critical viewpoint. First part, it introduces about what is brand, branding is a thing combine with our regular life, and how to recognize it. Second part, it elaborates some examples to support the analysis of the advantage of branding. The advantages can be explored from both company side and customer side. Third part, it will talking about the disadvantage, so I using some reference to support disadvantage. A definition for a brand has been shown in the Journal of Marketing Management by Professor Peter Doyle of Warwick University: A name, symbol, design, or some combination which identifies the product of a particular organization as having a substantial, differentiated advantage (OMally,1991,p. 107). Besides, company use branding as a tool to engage the customers buying their goods, also doing some promoting value, making some branding image, or attach consumers lifestyle (Rooney, 1995). On the other hand, customer use branding as a advantage to receive the benefits from the brands. As Ronny (1995) said that branding is a technique to build a sustainable, differential advantage by playing on the nature of human beings. Brand offer service to customer through advertising, promotion, and some e-media. Therefore, organizations use these tools as a media to attract consumers doing some economic and business active in the trade market. Advantage: Both branding and no branding have two-sides effect, the essential problem is how it has been done. For example, branding could help the brand promote their brand images in the trade market, also could earn some brand loyalty and increasing some brand value. On the other hand, no brand could has lower production cost, lower marketing cost, and lower legal cost than branding. After the organization entering the trade market, using the branding to communicate with their customer, they could receive benefit from branding. Such as reputable brand name, possible brand loyalty, brand value, maximum marketing efficiency, and even reduction of advertising costs (Onkvisit and Shaw, 2001). Branding name is a thing, a tool which companies use in the trade market. They admit that brand name may not set up or break down the organization but it would be a key point in their success or failure (Ronny, 1995). Normally, the organization use their brand name as part of their product even selling point, for example: Coke Cola, they use their brand name as the selling point, sales their products. Coke Cola is a famous brand around the world, moreover, in Chinese the Cola means could be fun, so that in Chinese culture the brand name plays a way in the trade market. It is easy for general public to think Microsoft, Apple, Asus and Acer as examples of famous brand. Actually, in marketing, brand has wider meanings rather than merely a name of a product. In the other hand, the simplest example to says is that a chocolate is a kind of food originally, however, if a company gives chocolate a name as Godiva, it becomes a branding name, therefore, the brand values comes appear, too. Moreover, according to Millward Brown Optimor website(2010) statistic, that technology industries brand value top 5 are Google($114260million), IBM($86383million), Apple($83153million), Microsoft($76344million), and HP($39717million), moreover, their brand value has changed about 14%(Google), 30%(IBM), 32%(Apple), 0%(Microsoft), and 48%(HP). Originally, those names consist of ordinary alphabet letters. But due to the branding activity in which the owners put great resource, those names, in itself, obtain marvelous values Generally, branding is not only a product that selling from business to customers , however, at the top of trade market, brand could be a product that selling and purchasing between business to business. Normally, small companies may merger other brand value and asset. The most famous example is that Lenovo merged IBMs PC department, after the merger, Lenovo has become the third top of pc manufacturers. Also their brand value has increased a lot. Another case in this point is Cisco. Cisco internet company in 20th century, through the acquisition over hundreds of time, their products manufactured by a simple router extended their product line from simple router to 25 kinds of network equipment. Each product has been ranked first or second in its industry. Brand loyalty is one of the advantage, too. Normally, we use return customer rates as away to test brand loyalty. For example, according to Ishii (2008) said that we could traced a customers purchased records, if we would found that they had bought some products from same company more than three times, then we could think this is a loyalty customer. But, in higher price product, for example, car, laptop, and house so on, we couldnt expect that customer would do repeat purchase very often. So, we might use brand image to be a method to test the brand loyalty. the competitive strength of an international brand is that it tends to be associated with status and prestige, while providing convenient identification for international travelers (Onkvisit and Shaw, 2001). Disadvantage: Obviously, branding, of cause, not only has advantages, but also disadvantages. In analysis above, the benefit for small company to merge a big company with famous brand is obvious. But it always is combined with high risk. Concentrating on economic benefit, market share and production capability, companies involved in merger and acquisition usually ignored divergence between different corporate cultures. Also, the new business line may not be appropriately melt into of their existing products categories. Whats worse, even the enterprise are constrained with limited financial resource to handle the merger and the following painful adjustment, which could be fatal to both companies in that merge case. The most well-known example is the convergence of BenQ and Siemens. BenQ has invested Siemens over six billion (EUR). But at the end of the investment, BenQ has announced the cessation of all investment for Siemens. Due to the unmatched business line and corporate culture, BenQ, without possessing proper knowledge and ability of merger, has made a big lost on these investment, leading an decrease of both BenQ and Siemens brand value. Another disadvantage of branding is its high legal cost. From the virtual to real, ideal to design, and picture to imageà ¢Ã¢â€š ¬Ã‚ ¦so on, the intellectual right are everywhere, even though it is only a sentence, all associated with legal cost. As Onkvisit and Shaw (2001), said that a brilliant brand name is useless, unless it is legally protected. For brand, the slogan, logo, even the design, these all are the part of brand value. If someone copies it without permission, or in a illegal way to make money, then the legal cost has appeared. Business would lost a huge amount of income , because of the illegal product had appeared in the trade market. Normally, the illegal products are far cheaper than the genuine ones, because they dont have any RD cost. So in the trade market, lower priced pirate products usually are more popular among consumers. For example, computer software is easily to copy. The biggest victim is Microsoft Windows systems. Their brand income are lost almost mo re than ten billion per year. Nevertheless, while the brand doing business activities, marketing cost and product cost are two things that they have to considerate. It might be the disadvantage, because from the beginning, the company is just set up, they had to spent some cost on promotion and launches some advertisement to increase their branding image and attract new customers. Every manufacture produce their product, not only original cost, but also involve labor cost, transfer cost, official costà ¢Ã¢â€š ¬Ã‚ ¦so on, these cost are all their necessary manufacture cost. Extra funds need to be raised for marketing and branding, which causes more pressure to companies who are already heavily concerned with manufacturing cost. Conclusion: Finally, to brand or no to brand is the first question of the new company which is just set up. No matter which way the company has chosen, it may have effected of company. To branding, the manufacturer would face some problems to deal with. For example, they have to think a advertise to promote their brand at the beginning. Then they have to do some strategies to compete with their competitors. They need to render benefit to customers, therefore they could receive some brand royalty of customer. Another way for company to increase its brand value is to purchase other company. First of all, they might need to take the culture into consideration. Secondly, they might concern whether company can take the high-risk in investment or not. Thirdly, they might think of the marketing cost and product cost. However, the most important thing is the legal cost, it might plays an important role of the branding, because the value of the whole business lost, have influenced the enterprise lot. The cost of illegal product might influence the companys income, the brand value and even brand image. Customer might prefer lower price of product of high quality. In addition, if the organization could offer higher quality of service and same quality of quantity, customers would still be loyalty of the brand. Words : 1534.

Trade Protectionism Put to the Test Essay -- Essays Papers

Trade Protectionism Put to the Test The idea behind trade protectionism as policy is that domestic industry cannot or should not have to compete with imports from foreign producers and that domestic workers’ jobs are at risk when trade is unrestricted. Most economists, and a large portion of the public would agree when looking at the big picture that free trade is positive for importers and exporters, as well as consumers. The very basic theories of comparative advantage, specialization and trade make a compelling argument for trade without barriers. Trade based on comparative advantage produces higher outputs for both importers and exporters, higher quality of goods, lower prices, greater varieties of goods from which to select, and an overall greater sense of economic well-being. The disadvantages of implementing quotas, tariffs, or other forms of barriers to trade far outweigh any perceived advantages. There are cases to prove that more jobs are actually lost under protectionism than saved. Historicall y, trade barriers result in higher prices to consumers, higher taxes (taxes on imported goods as well as those to cover additional bureaucratic infrastructure to force compliance with trade restrictions), developing counties that have no way to repay debt as their ability to export is squashed, and trade wars that have proven a deterrent to world peace. This paper will look at the evidence that trade protectionism has an overwhelmingly harmful effect on developing countries. It creates and rewards inefficiency in the marketplace. It benefits only special interest groups while the masses are forced to pay higher prices for lesser quality and choice. The costs (both monetary and non-monetary) far outweigh any benefi... ...some military conflicts. During the 17th and 18th centuries in Europe, mercantilism led to nonstop wars in efforts to expand empires and build larger markets. The American Revolution and the Civil War can be said to have many issues at their core, not lease of which were tariffs and export restrictions. In 1930, the Smoot-Hawley Act, was signed by President Hoover and raised tariffs (some as much as 100%). What followed were similar trade restrictions implemented by other countries. This was followed immediately by the Great Depression and then by World War II. Obviously, these historical examples do not represent empirical data to connect trade protectionism to war and unrest. However, it is enough to give pause for thought to consider the possibility that trade restriction policies (and those created in retaliation) may create and feed hostility and ill will.

Are we influenced by TV and film? Essay

Censorship of the media allows either the government or a governmentally appointed department the right to dictate to individuals what they are allowed to view. In a democratic society, personal freedom is of paramount importance and therefore we should have the right watch what ever we want. But, the most vulnerable in society, for example young children need to be protected, and consideration must be given to the feelings and sensitivities of minority groups, for example racially motivated violence or hatred. It is only though legislation that society is able to ensure that the vulnerable are protected. Censorship of television, film and videos allows our children to be shielded from unsuitable material, including bad language, sex and violence. All societies have some form of censorship or control over the media. Although there will always be differences of opinion on what is suitable or acceptable, the issue is who do we allow to control media output and how do they do this. Every film and TV programme that is going to be shown at the cinema or released on video or DVD must be classified by the British Board of Film Classification (BBFC). The BBFC was formed in 1913 and they view each film prior to release and give it a certificate. They decide on a classification for each film depending upon the content in terms of language, sex, violence, morality, and horror. The government can also put restrictions on any broadcast that reveals information on their work that may jeopardise the security of the country, under the Official Secrets Act. They can also stop publication of anything that could raise racial conflict, under the Public Order Act, and can use the ‘D’ notice to contain any information that may not be in the public interest to divulge. Mary Whitehouse was a leading campaigner in the fight to censor violence on television. On the 5th May 1964, she said, ‘If violence is shown as normal on the television screen, it will help to create a violent society’, and believed that the unprecedented levels of social and criminal violence in western society was caused by the saturation of violent crime on television. In 1963 she launched a ‘Clean-Up TV Campaign’, and obtained half a million signatures on a petition, which she presented to the Governors of the BBC. This had little effect, so in 1965 she co-founded the National Viewers’ and Listeners’ Association who attempted to pressurise the Broadcasting Authorities into improving public accountability on policies of taste and decency. The association also put pressure on governments to establish an Independent Broadcasting Council, but it was not until 1989 that the Broadcasting Standards Council was formed but because it was, and still is, an advisory body it had little impact on the standards of programmes.

Legal Protection And Intellectual Property Rights

Intellectual property is defined in the World Intellectual Property Organization (WIPO) as the creation of the mind. According to WIPO the work does not have to be literary in order to be protected. Names, images, symbols, designs..etc. are all protected. Intellectual property rights are mentioned in article 27 of the universal human rights act that gives the inventors and creators to benefit from their work. Those rights are obtained through registering patents, trademarks, and copyrights. There are several reasons behind offering protection to intellectual property. First, the legal protection encourages inventors towards creating and discovering, and that will lead to further innovation. Economic growth is also considered an incentive†¦show more content†¦TRIPS aims to protect IP in a broader level (globally), support international trade, and pursue public interest. TRIPS deals with different IP rights e.g. patents, copyrights, and trademarks. This paper will discuss all three types of IP. The protection granted for owners of intellectual property rights under TRIPS promotes the business and economic development and that will result in increasing the level of innovation in several countries. Inventors will also be encouraged to contribute to activities involving research and development; knowing that their work is legally protected. Countries impose rights of protection to IP in order to ensure citizens are innovative in their own country. Developed countries offer very high protection of IP rights and because of that, those countries are considered very innovative. Article 8 of the TRIPS agreement states that members may â€Å" adopt measures necessary to protect public health and nutrition, and to promote the public interest in sectors of vital importance to their socio-economic and technological development, provided that such measures are consistent with the provisions of this agreement.† This provision validates the recognition of problems arising from over-protection of IPRs by TRIPS. It allows members of the agreement to react upon misuse of the IPR by IPR owners, provided that measures taken are complying with the provisions outlined in TRIPS. However, the impact