These complex and unique dynamics merge to form what is known as brand equity or the ability of a business to achieve competitive advantage and thereby drive sales, profits and market share.
In short, brand equity is what creates a sustainable competitive advantage. Branding creates a sustainable advantage through many efforts which could include:
Because branding is an intangible, often abstracted concept it is too often misunderstood. It is undermined by being viewed as a marketing device or tool, rather than as a business strategy. Further, in rapidly-changing economies the seduction of short-term profits has seen companies take a naïve and short-sighted approach to their brands. This is particularly true of the technology markets that have had to deal with:
Bluntly put, the consumer technology market has been primarily focused on driving adoption rather than building brands. A good case in point has been the neglect of Africa where grey brands have been given fertile ground to proliferate. Now that Africa is being recognised as a viable market for further growth outside first world markets, technology brands are being forced to battle with piracy, grey markets and inferior clone products.
Technology brands have through massive adoption, enjoyed huge growth and popularity. Brands like Microsoft, Intel and IBM have quickly squared up to centenarian brands in terms of brand value. However, they now have to stand the tests of time. Part of their learning going forward is understanding how brand management and the growth of brand equity are undeniable linked to sustainability. Brand awareness is created by laying a foundation of awareness, but it is ultimately sustained by creating high levels of brand loyalty. Ultimately, brand loyalty can only be sustained by marrying the brand promise with brand delivery. Simply put, it is all about doing what you say you will. A tough challenge and one that can only consistently happen when the brand is the business. When the brand is the nerve, cells, heartbeat, blood and guts of an organisation and when the brand drives that organisation every day to deliver on its promise to customer each and every day.
