Brands and Brand Equity

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Brands and brand equity: definition and management Lisa Wood Sheffield Hallam University, Sheffield, UK Brand management In consumer marketing, brands often provide the primary points of differentiation between competitive offerings, and as such they can be critical to the success of companies. Hence, it is important that the management of brands is approached strategically. However, the lack of an effective dialogue between functions that are disparate in philosophy and do not have a common and compatible use of terminology may be a barrier to strategic management within organisations. No more is this evident than between the functions of marketing and accounting. This article seeks to establish the relationships between the constructs and concepts of branding, and to provide a framework and vocabulary that aids effective communication between the functions of accounting and marketing. The assumption in the article is that good communication between functions within organisations aids strategic management. A model for the management of brand equity is also offered. The following discussion focuses on the concepts of brand equity and added value as they relate to the brand construct itself. Brand equity An attempt to define the relationship between customers and brands produced the term ``brand equity'' in the marketing literature. The concept of brand equity has been debated both in the accounting and marketing literatures, and has highlighted the importance of having a long-term focus within brand management. Although there have been significant moves by companies to be strategic in the way that brands are managed, a lack of common terminology and philosophy within and between disciplines persists and may hinder communication. Brand equity, like the concepts of brand and added value (discussed in the section headed
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