Is Branding Still Important?

MARKETING ANSWERS FAST.COM (382 words) IS BRANDING STILL IMPORTANT? This is an often debated issuing in contemporary marketing discourse. Without doubt we are travel away from the era of big scratch dominance. When I was in graduate school, we studied a principle called the rule of the 3s. This theory proposed that a product family could only support three major brands and a few corner brands profitably. The rule of 3s pattern is exhibited by McDonalds, Burger great power and Wendys; GM, Ford Chrysler; Coke, Pepsi, 7UP; NBC, ABC CBS and Visa, Mastercard and American Express. What do these assorted industries have in common? Theres a market share drawing card, a market share rival and a market follower that collectively comprise 80-90% of the category and a few niche brands each with 1-5%. The brand attraction and brand challenger were constantly engaged in current head to head combat competing for the same customer segment. echo the burger wars? The cola wars? Rarely however did the challenger overtake the leader for two reasons: 1) the leader had greater economies of scale and 2) mass media was high-priced and the leader had more marketing resources with which to fight. That was the natural advantage of size. Further, a brands size was highly correlated with monastic bon ton of entry.

The first brand to create the category typically maintained the largest share of the category regardless of the number of other entrants. This is the inherent value of being first. Follower brands (e.g. Wendys, 7UP, Chrysler) and niche brands (e.g. KFC) rarely engaged the brand leader or the brand challenger. success for the follower brand was to stake out a small segment of customers who valued something different (the uncola, wheres the beef) and be content to grow as the segment grew. The follower brand remained relatively quiet and did nothing to further the rivalry amidst the leader and challenger. The ongoing fight between the leader and challenger rarely benefited... If you want to get a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.