The
brand value chain model has several basic premises. Fundamentally, it assumes
that the value of a brand ultimately resides with customers. Based on this
insight.
The
model has four stages that are...
Stage 1: the brand value creation process
begins when the firms invests in a marketing program targeting actual or
potential customers.
Stage 2: The associated marketing activity
then affects the customer mindset-what customers know and feel about the brand.
Stage 3: The mindset, across a brand
group of customers, produces the brands performances in the market places-how
much and when customer purchase, the prices that they pay and so forth.
Stage 4: Finally, the shareholder or
investment community considers this market performance and others factors such
as replacement cost and purchase price in acquisitions to arrive at the
assessment of shareholder value in general and the value of the particular
brand.
The model
also assumes that a number of linking factors intervene between these stages.
These linking factors determine the extent to which value created at one stage
transfers or multiplies to the next stage.
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