Brand Management: Strategies for Building and Managing Brand Equity
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This report explores the importance of branding as a marketing tool and the key components of a successful brand strategy for building and managing brand equity. It discusses different strategies of portfolio management, brand hierarchy, and brand equity management. The case study focuses on Bentley Motors Limited.
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Brand Management
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Table of Contents INTRODUCTION...........................................................................................................................3 TASK 1............................................................................................................................................3 P1 Importance of branding as a marketing tool......................................................................3 M1 Evaluate how brands are managed successfully over time using application of appropriate theories, models and concepts................................................................................................5 P2 Key components of a successful brand strategy for building and managing brand equity5 M2 Apply appropriate and validated examples within an organisational context.................7 TASK 2............................................................................................................................................8 P3Differentstrategiesofportfoliomanagement,brandhierarchyandbrandequity management............................................................................................................................8 M3 Critically analyse portfolio management, brand hierarchies and brand equity using appropriate theories, models and frameworks......................................................................11 TASK 3..........................................................................................................................................11 P4 Evaluate how brands are managed collaboratively and in partnership both at a domestic and global level.....................................................................................................................11 M4 Critically evaluate the use of different techniques used to leverage and extend brands.12 TASK 4..........................................................................................................................................13 P5 Evaluate different types of techniques for measuring and managing brand value using specific organisational examples..........................................................................................13 M5 Critically evaluate application of techniques for measuring and managing brand value in relation to developing a strong and enduring brand.............................................................14 CONCLUSION..............................................................................................................................15 REFERENCES..............................................................................................................................16
INTRODUCTION Brand management is seen as the effective incorporation of marketing functions in such a manner that enhances value of the product for the customers (Agante and Pascoal, 2019). Adoption of effective marketing activities allows company in developing their strong image at marketplace which further supports them in increasing number of its loyal customers. Brand managementallowsbusinessenterprisesingrabbing highernumber of opportunitiesthat ultimately results in higher profitability at marketplace (Arbouw, Ballantine and Ozanne, 2019). The present report is based on Bentley Motors Limited, a UK based British manufacturers and marketer of luxury cars. The respectivecompany was established in the year 1919 and headquartered in Crewe, England, United Kingdom (THE BENTLEY STORY, 2019). This report will provide description about core concept of brand management, its importance as a marketing tool. It will later on explain about portfolio management, brand hierarchy, brand equity management and how all these supports in developing effective brand. Furthermore, it will provide explanation on brand extension and leverage at domestic as well as international level. In the last section of project, different techniques used for managing and measuring brand value will be explained. TASK 1 P1 Importance of branding as a marketing tool Branding is also identified as an effective marketing practice which allows business enterprises in creating their strong brand value at marketplace. This includes uses of promotional techniques, symbols, logo, designs, packaging, brand name etc. in such a manner that is supportive in influencing interest of customers towards them (Ashill, Semaan and Williams, 2019). This is also supportive in creating demand of the company as well as its products at marketplace that will result in the increase of sales performance of this company in rightful manner.In respect of Bentley Motors Limited, the respective marketing manager of this emphasises on using various marketing activitiesfor managing their brand effectively at marketplace. This is because, they believes that branding is an marketing tool which will bring quicker success to them. In this regard, importance of branding as a marketing tool has been elaborated below:
Brand enhances recognition:Usage of attractive and unique logo allows businesses like Bentley Motors Limited in raising its brand recognition at marketplace. It can be said that selection of meaningful and unique logo places stronger impression on customers mindset. This influences them to recognise the same brand with its Logo whenever they comes in contact with it. Generates new customers:Another importance of branding for Bentley Motors Limited is that it creates more number of customers for the respective company. This usually happens when people are aware about the brand name, its products, quality of services etc. This directly enhances their trust over the same (Aziz and Ngah, 2019). This simply states that branding is an effective marketing tool which is supportive for firm in influencing interest of customers towards them. Along with this, it also develops their loyalty among customers towards the same brand. Raises satisfaction level of employees:Business which uses effective and valuable marketing activities in terms of branding also contributes in developing pride among employees (Batt and Bruhn, 2019). This is because, employees know that they are working for trustable company which is popular at marketplace. This directly results in the enhancement of satisfaction level of employees. Perception and view point of individual is continuously changing towards the brand with the passing time. This generally happens because business enterprises adopts range of marketing activities that leads to higher business growth of the company in rightful manner. In addition to this, it can be said that branding is changing for the business enterprises as its business managers are perceiving it in a different manner. In order to use branding in rightful manner, it is essential for manager to develop their understanding as well as knowledge on it so that they can tackle various business situation and attain higher profits. In context of Bentley Motors Limited, the respective manager of this company ensures to make use of branding in various organisational context. Few examples of this are described as below: Marketing head of Bentley Motors Limited prefers to conduct market analysis and detailed market research with the existing presence market zone in order to order to identify different needs and requirements of customers so that they can incorporate all of the information in their newly developed products (Bhattacharya, Kumar and Dutta, 2019).
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Business managers of the respective company also make use of branding in order to explore proportion of their potential customers in order to maximise its sales performance in rightful manner. M1 Evaluate how brands are managed successfully over time using application of appropriate theories, models and concepts In context of Bentley Motors Limited, its managers make use Aaker brand equity model in order to enhance effectiveness of its brand image at marketplace in rightful manner. This framework is consisting of four core dimensions which are explained below in brief: Brand loyalty: At this dimension, mainly loyalty of customers is seen on the basis of level of extent at which they are loyal towards the brand. Here, manager of respective company focuses on checking that how many customers are loyal towards them (Boukis, 2019). Brand awareness: This dimension states the level at which public are aware about this brand in rightful manner. Perceived quality: In this, manager tries to focus on exploring that at which extent its customer perceives its quality. Here, main emphasis of Bentley is to check that in which manner its customers are taking it. Brand associations:At this dimension, Bentley Motors emphasis on associations which are triggered by this brand in effective manner. As per the above described framework, it can be said that this model is helpful in developing knowledge of individual over the brand equity. It also aware them about the positive and negative dimensions of the company that can be handled by its respective manager without any error. Apart from this, the company also makes use of CBBE model to build an effective image of the brand in the mind set of customer. It acts as the route map for the management of Bentley Motors to examine their progression in relation to brand building. It will also support marketing teamofcompanyinapproachingalargebaseofpeopletherebyenhancingtheirsales performance in the near future. P2 Key components of a successful brand strategy for building and managing brand equity There are several appropriate and effective components which the firm could use in relation to ensure successful brand strategy for building and managing brand equity (Carlson and et. al., 2019). To reflect this appropriately, Keller's Customer Based Brand Equity Model is
applied in context of the firm. Hence, the CBBE model with respect to Bentley is discussed below: Brand Identity: The very first step in relation to building and managing brand equity is related to creating awareness or brand salience of the brand. Moreover, one of the key components within the organisation is that the company is also required to develop a correct and accurate perception within the organisation.Bentley could undertake several activities to enhance its brand identity. For instance, it could opt for big product launches and present its products within Expos which would be enhancing the scope of familiarity of its products and the firm (Casprini and et. al., 2019).Another way through which this could be undertaken is marketing campaigns reflecting the processes of manufacturing as well as features of new products. Brand Meaning: This component reflects how the company could build its performance and imagery within the marketplace. For example, Bentley must ensure in this stage that its vehicles are in alignment with the needs of customers. In order to ensure effectiveness, the company must ensure enhanced performance on the basis of features, reliability, serviceability, durability as well as efficiency.For this purpose, Bentley must utilise and implement different methods such as questionnaires and surveys through which the company could ensure customer feedbacks. Moreover, the firm could also indulge in social media conversations with customers to ensure appropriate and effective insight into the perception of customers (Chang and et. al., 2019). Moreover, in terms of imagery, the company must ensure high quality creation with economical ways to bring an appropriate brand image in the market.Bentley could ensure the same through modifying its supply chain and acquiring raw materials that are economical. Furthermore, the company could also ensure creation of electric vehicles that would provide the company with economical advantages. Brand Response: This stage needs the firm in focusing towards judgements and feelings of individuals towards the brand. Several judgements could be created by the customers towards the company, such as perception of quality, credibility, consideration as well as superiority. In relation to feelings, the organisation must emphasise on how best its products induce positive feelings within the minds of customers.For example, Bentley could ensure creation of vehicles that
provide the customers with better comfort, design and empowerment.This could ensure feelings like security, social approval, fun, self respect and so forth (Cheng and et. al., 2019).Brand Resonance: This is perhaps the last stage of the model, as well as the last component in building and managing the brand equity. This is one of the most desirable level to reach by a company. Hence, in order to ensure effectiveness within the same, the company is required to work in ways where psychological bond is developed by the customers with the brand. In relation to this, Bentley couldensurethatbehaviouralloyalty,developmentofsenseofcommunity,attitudinal attachment and active engagement is developed by the company with their products (Cooper, Stavros and Dobele, 2019). M2 Apply appropriate and validated examples within an organisational context. In terms of several examples, Bentley could apply the above mentioned components in several ways which are mentioned below: Brand Identity: In creation of awareness, Bentley must appropriately search the environment to determine the target market of this firm. Moreover, the firm must narrow down the same to ensure that that prominent target market is used to market their products.For this purpose, the organisation could implement Segmentation, Targeting and Positioning (STP) approach in order to appropriately and effectively ensure determination of target market (Foroudi, 2019). Brand Meaning: In relation to developing positive relationships, Bentley could adopt several models or could use appropriate market research through feedbacks and surveys which would help them in realising the needs of customers, which would help them in developing a positive brand image. Moreover, another appropriate method through which the firm could create its brand image through philanthropic activities, that requires the company to donate or help several communities after a limited number of products are sold. Brand Response: The organisation could enhance its quality by adopting high end technology in its manufacturing. For credibility, the firm could adopt product testing. Moreover, social media must be used by the company to market its product to develop positive response (Gorgitano and Sodano, 2019).In addition to this, marketing campaigns of the company must associate
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campaigns supporting several celebrities of cinema which would attract more people towards the product. Brand Resonance: The company, along with its products, must provide customers with gifts and customer loyalty through after sales service, which is essential in relation to developing appropriate resonance.This could be done by Bentley through appropriately and effectively providing benefits like life-term loyalty as well as assured vouchers on events like Christmas or New Year, that would be driving the customers more towards being loyal to the firm. TASK 2 P3 Different strategies of portfolio management, brand hierarchy and brand equity management. Portfolio management Brand portfolio is considered as the collaboration of variety of brands which belongs to single brand. In this, every individual brand operates its ow business activities and other operational areas (Greyser and Urde, 2019). Also, they enjoys other benefits with different brands belonging to the same portfolio because they can use resources and other promotional activities done by the other brands belonging to same portfolio.The main advantage of portfolio management is that it supports company in avoiding uncertain risks and also helps in allocating available resources in effective manner.In context of Bentley Motors Limited, it can be said that thiscompanyusesitsowntrademarkdevelopstheirdifferentimageatmarketplacein comparison of their competitors. This company also adopts range of strategies in order to effectively manage its portfolio. These strategies are explained below: Active portfolio management:It is termed as an effective strategy according to which business managers puts specific investment on the basis associated goal. This is effectively done as per the predetermined benchmark towards targeted returns. Passive portfolio management:As per this strategy, business managers often analysis their past records based on returns generated from market. It simply develops knowledge of respective on the market response and return that gained from the same zone (Gul, Jan and Amin, 2019).
At the time of implementing these strategies, it is required by manager ofBentley Motors Limited to at the main drawback of portfolio management that is creates higher level of complication which could also result in the reduction returns for the company. Source: (What is brand portfolio strategy, 2018) Brand hierarchy An effective collaboration of two or more brand strategies on the basis of their variant elements as well as components are also termed as brand hierarchy.Brand hierarchy also works as the supportive factor for entity as it enhances brand awareness among customers and also increases their recognition towards the same brand. It is also supportive in attracting attraction of customers towards each brand in rightful manner.The main core strategies which are often used in brand hierarchy are explained below:Brand of house:In this, main emphasises of company is on promoting single but main brand of the company at marketplace in effective manner which directly promotes other categories of the same brand (Hanna and Rowley, 2019). For example:Bentley Motors Limitedpromotes its own brand which will directly help them out in promoting all of its product categories across the world. This will be supportive for them in increasing their sales performance worldwideCorporate branding: Corporate branding is often seen as the marketing approach according to which business managers mainly indulge into promotion of all popular products as well as services of single company. It can be said that the main motive of this Illustration1: What is brand portfolio strategy
promotional technique comes under branding is to enhance its sales performance so that their profitability can also be developed. House of brands: This strategy simply states that companies are required to promote their all sub brands separately in order to develop their own brand value for the single product. In this strategy negligible priority is given to the main brand (Helmi, Bridson and Casidy, 2019). This strategy requires higher range of financial resources in order to develop separate branding strategy for all individual sub brand. With reference toBentley Motors Limited, its manager adopts this strategy to promote individual brand like Bentley Turbo R, Bentley Arnage, Bentley R Type Continental etc. at marketplace. This is supportive in increasing their sales performance for all of its separate brand. While acquiring these strategies, it would be required bybusiness managers of Bentley Motors to consider their financial statements as it is an expensive process which might develop financial problem in the near future. Along with this, it also creates complication for the managers to separately manage branding of every company. Strategies to manage brand equity Brand equity is mainly termed as the commercial value of the company as per consumer's perception towards the brand name rather than particular product or service. The main benefit of strong brand equity is that its influences customers to willingly buy products and services even at premium prices in order to experience effective services offered by company.There are various strategy to manage brand equity that could be adopted byBentley Motors Limitedwhich are described as below:Holding up the brand image:This is main strategy adopted by business manager of Bentley Motors Limited is to maintaining their brand image at marketplace in order to manage its own brand equity in effective manner. This can be effectively done by providing exact same product inclusion of same features which have been promised to customers (Japutra, Nguyen and Melewar, 2019). It will work as the influential factor for the business enterprise as develops loyalty among customers for them. Innovation: It is important forBentley Motors Limited to go for differentiation strategy whileintroducingnewproductatmarketplace.Thisstrategywillworkasthe performance booster for the company as they are influencing customers with every new product this simply means it will bring strong boost in the sales performance of Bentley
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Motors Limited as they are offering featured cars to them. This will also support the respective company in gaining competition advantages. Implication of these strategies are effective for the Bentley Motors Limited but also it is also seen as costly method for company because they have to constantly invest amount in innovations and other activities for maintaining their brand equity. M3Criticallyanalyseportfoliomanagement,brandhierarchiesandbrandequityusing appropriate theories, models and frameworks From the above analyse on brand hierarchies, portfolio management and brand equity it can be said that all of these terms are highly effective and valuable for the company which allows them in developing their strong brand name at marketplace in rightful manner. Business managers of the company prefer to adopt several models and concepts in order to manage their brand over the changing period of time. Here, business managers often prefers to adopt several strategies that helps in enhancing their brand value and developing brand image of company at marketplace in rightful manner (Ryu and et. al., 2019). With reference to Bentley Motors Limited, its manager makes use of Aaker’s equity model in order to manager their brand at marketplaceinrightfulmanner.Usageofthisframeworkwillsimplyallowthemin implementing all of their developed marketing strategy that directly supports them in gaining competitive edge. TASK 3 P4 Evaluate how brands are managed collaboratively and in partnership both at a domestic and global level. Collaboration as well as Partnership Agreements Partnership agreements refers to the contract of two or more company who works together, share responsibilities and profits with one another. Businesses working at international scale often indulge into collaboration and partnership agreement in order to gain benefits at both the national as well as international marketplace (Sarker, Mohd-Any and Kamarulzaman, 2019). These collaborations are supportive for companies in managing their brand effectively. Example of international collaboration and partnership agreement at both the international and domestic level are described below in effective manner:
At domestic level:At domestic level, it has been explored that Bentley has entered into the collaboration with innovative American technology start up, Filld a mobile application that is developed for providing fuel delivery services to its customers (BENTLEY AND FILLD TRIAL INNOVATIVEFUEL-ON-DEMANDCOLLABORATION,2019).Thisapplicationwas especially developed by Bentley vehicles according to which car owner or operator can easily ask for fuel delivery and can further choose delivery time too. This service was initially available for Bentley users in California only in order tosave time of customers in terms of searching for fuel station and filling fuel in it. This collaboration will allow the company in enhancing satisfaction level of its customers. This ultimately results in development of trust of customers which will also makes them loyal towards the company for longer period of time. At international level:Bentleys Motors and ExxonMobil have entered into strategic partnershipin order to showcase its performance in profitable manner with the inclusion of advanced synthetic motor oil technology (ExxonMobil, Bentley Motors extend their strategic partnership,2019).Boththecompanieswillfurtheremphasiseoncontinuingwithits collaboration in technology, motor sports, marketing and lubricant sales. Collaborative working of these companies will allow them in providing best quality of luxury cars to customers that will directly boost up their sales performance as they are providing best services to its customers. Internationalcollaborationwillhelp thesebusinessesinservingtheircustomersinmore appropriate manner. M4 Critically evaluate the use of different techniques used to leverage and extend brands. Brand leveraging is termed as an supportive strategy that allows business enterprises in using core strengths of their existing brand for the purpose of launching their new brand belongs to same company. This new brand also belongs to the same categories. This considered as the effective method as it supports them in creating awareness about their brand and its offering among customers in order to influence their interest towards it in rightful manner. In context of Bentley Motors Limited, it can be said that its top management team have decided to leverage Bentley Mulsanne at marketplace this company is highly popular at marketplace which allows managers in enhancing its market share at marketplace. It can be said that Bentley is already having strong market presence which directly supports them in gaining advantage leverage at marketplace (Sarker, Mohd-Any and Kamarulzaman, 2019). Later on, it can be said that there are numerous of techniques that are adopted by business associations like Bentley for extending their
brand. Main techniques could be adopted at the time of brand leverage are Line extension and brand extension. In context of Bentley, this company make use of line extension in order to develop their brand value in rightful manner. According to this strategy, company prefers to company introduces few more categories of products under same brand name. This helps them in providing higher number of options to the customers. As a result, it increases sales performance of company along with its profitability. TASK 4 P5 Evaluate different types of techniques for measuring and managing brand value using specific organisational examples. In order to maintain brand value of the company, it is essential for its business manager to maintain and measure their respective brand value at regular basis. This helps them out in taking required initiative so that developed problem or issue can be rectified (Stewart, 2019). With reference toBentley Motors Limited, its manger make use of below stated techniques associated with managing and measuring brand value. These are described below in effective manner: Techniques for measuring brand value Income approach method:The main emphasise of this method is on evaluating gross earning of business enterprise for the purpose of exploring its actual value at marketplace. This method is often adopted by manager ofBentley Motors Limited, in order to measure its brand value. In order perform it in effective manner they uses range of statements like cash flow, income statements, cost savings etc. At the time of calculating they prefers to calculate exact figures from this. As a result, it will support this company in actual brand value of company in rightful manner. Cost based method:As per this method, major focus of company is measuring expenses of company in order to check actual costing of the respective enterprise. It mainly includes expenses related to advertisement,investments, marketing activities etc. by doing this they can easily measure their brand value. It allows business enterprise in exploring their profits (Sultan and Wong, 2019). Techniques for managing brand value
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Innovation:Innovation is considered as an effective method which allows businesses in managing their brand value in rightful manner. This technique is supportive in attracting maximum number of customers towards them in rightful manner.For instance:Apple uses this technique to differentiate its mobile phone range from its competitors. The main focus of Steve Jobs is to incorporate some new features in its every new device for attractinghigherrangeofcustomerswithitsinnovativeproducts.Thisdirectly contributes in managing brand value of company and influencing its sales performance in right direction. Brand awareness:This method states that, business enterprises are required to focus on using several marketing strategies and campaigns through which they can easily enhance awarenessabouttheirproductandservicesatmarketplace(Wijaya,Semueland Adiwijaya, 2019). Usage of this technique for managing brand value can be understood with the help of example. For instance: manager of TESLA, adopts several marketing activities, like campaign, social media promotions and others for managing its brand value. This generally happens because they are enhancing awareness of maximum number of customers towards their brand. M5 Critically evaluate application of techniques for measuring and managing brand value in relation to developing a strong and enduring brand. According to the above described techniques, it can be said that usages of measuring and managing techniques allows business enterprises in improvising their brand value in rightful manner. This is also supportive for them in developing strong image of company at market place as they are having good knowledge about their brand value which directly allows them in taking required initiative for rectifying errors that are placing impact over their brand value. In respect of current chosen company that is Bentley, it can be said that its business manager have prefers to adopt income based approach in order to measure its brand value at marketplace. This effectively develops their knowledge over actual value of this company in front within the industry. This knowledge will provide them time for improving its brand value at marketplace of they finds it non worthy or ineffective. As a result, it is easier for respective company in developing their strong brand image at marketplace.
CONCLUSION On the basis of above described report, it is comprehended that brand management is identified as the important initiative of the company which supports them in developing their positive image at marketplace. Strong brand image at marketplace allows business enterprises in enhancing heir sustainability at marketplace because they have larger group of loyal customers which maintains their sales performance. It has also been explored that brand management works as the important marketing tool that works as brand booster for respective enterprise as it allows them in developing their strong brand image. Later, it has also been analysed that it allows businesses in enhancing their brandequity as well. Business enterprises uses different different marketing activities for maintaining their brand image at international as well as domestic market place. This is mainly done with the usage of collaboration and partnership methods. Along with this, it can be said that brand management is not only the single time activity but business enterprises are also required to use effective technique time to time in order to manage and measure their brand value at regular basis. This also helps them out in taking effective step if the identified value does not seems to look predictable.
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