Conceptual Principles of Brand Formation
Authors: Kovalchuk K. V., Podorozhna M. R.
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The article presents a conceptual basis for the formation of a brand based on the analysis of key ideas of researchers and practitioners engaged in branding issues, business philosophy in market relations, development of trademark and brand, development of marketing strategies, advertising, promotion of goods in the market. According to the analysis of generally accepted conceptions ("Brand capital", "Brand wheel" model, "Theory of image", "Strategic brand management", "4-D Branding", "Maximization of potential shopping brands", "Value-based-Marketing ») and theories of the brand of such scientists as D. Aaker, T. Ged, D. Ogilvi, Y. Ellwood, J.-N. Kapferer was formed the conceptual framework of branding, which includes such concepts as "brand capital", "trademark", "image", "reputation"; the characteristics of the brand are highlighted - leadership, identity, uniqueness, value, advantage; the essence of the brand is defined from the positions of manufacturer, which forms the competitive advantages of the product for the consumer through satisfaction of the functional, social, economic, psychological needs of the latter. Particular attention in the article is paid to the conceptions of brand positioning, where the main "players" of the market are determined as the company, competitors and consumers. The brand’s position provides information on identity through communication tools. The brand’s positioning includes the desire to emphasize its key aspects, and the idea of a positioning strategy is represented by the clear idea of the brand position communicated to the consumer. The brand’s position is disclosed through a set of associations, ideas and expectations that the consumer connects with the brand. This is a relative conception based on a comparison by the consumer of this brand with competing brands. The real confirmation of the use of these conceptions in the formation of the brand of companies is provided by an analysis of the rating positions of such global brands as Apple, Amazon, Mercedes-Benz, Toyota, Google, Microsoft.