Stakeholder Groups and Brand Value

Abstract

The paper discusses the various stakeholder groups and brand value. Brand value is the perceived value of a brand in the minds of the customers. This is calculated as the ratio of the benefits derived from the product or the service and the price the customer pays for it. For price- sensitive customers, this is a function of product performance, whereas for premium products, it is equal to the equity of the brand. Unlike the previously held notion that brand value is created mostly by customers, the paper presents the various stakeholders with a role in creating and building brand value.

Table of Contents

Stakeholder Groups and Brand Value4

Brand value4

What You Get4

Stages of Brand Value7

Building Brand Value from the Inside Out - Employees9

Employee Brand-Building Behavior11

Creation of Brand Value by Customers12

Discovering the Brand12

Defining the Brand13

Delivering the Brand Experience15

Stakeholder Model of Brand Value Creation18

Stakeholder Identification18

Stakeholder Prioritization18

Sources of Brand Value20

The Stakeholder Model22

Supplier Competence and Brand Value24

Supplier Competence24

Purchasing Value24

Switching Cost25

Buyer Satisfaction26

Brand Loyalty26

Brand Trust26

Conclusion27

References28

Stakeholder Groups and Brand Value

A brand is a combination of tangible and intangible elements (Bodet, 2008). The journey from a mere product to a brand is not an easy one given the cut-throat competition. A brand is something that the target audience can relate to. They have an emotional association with the brand. A brand has a personality and stands for itself (Kuusik, 2009). To be more precise, a brand is composed of several elements, making the brand value greater than the total value of the brand (Hallward, 2005).

Brand Value

Brand value may be defined as the value that a customer perceives is associated with a brand. This value is the difference between what a person gets against what he pays for. For brands that charge a premium price, it becomes the value that becomes part of the brand equity, meaning it directly contributes to brand development. For brands that are priced at a discount, the value of the brand may be defined in terms of the performance of the product (Bodet, 2008).

What do customers receive of the brand?

The purpose of a product or a service is to meet the needs and wants of the customers (Ahearne, 2007). How well a product manages to meet the needs of the customer is what is called what you get against the price you paid.

Brand value is a combination of several factors including brand equity, product features and the price of the product. The repurchase of a certain product or service and the need to recommend the product to someone else stems from the brand value derived by the person from the product or service (Hallward, 2007).

Brand equity refers to the power enjoyed by a brand in the form of goodwill and recognition. It is this value that translates into higher profit margins and turnover for the brand builder. Product features refers to the set of benefits that are offered by the product. Brand value refers to the brand's ability to charge a premium price for its premium ...