Sunday, January 31, 2010

Brand Management Part-2 Brand Equity & Brand Franchise

Brand Equity
Regarding my previous post about What is Brand management? here is some more details about Brand equity & Brand Franchise today. Brand equity refer to the marketing effects or outcomes that grow to a product with its brand name compared with those that would grow if the same product do not have the brand name. At the base of these marketing effects is consumers' knowledge. We can say in other words, consumers' knowledge about a brand makes manufacturers/advertisers respond differently or adopt properly expert actions for the marketing of the brand.

Brand Franchise:

An arrangement between a brand name producer and a wholesaler or vendor that gives the wholesaler or vendor the private right to sell the brand producer's product in a exact territory. This arrangement is usually done by contractual agreement over a period of time. A brand franchise allows the wholesaler or vendor to sell the product in a noncompetitive market and therefore to set price boundaries as the traffic will bear.