This article attempts to provide a basic overview by highlighting the key ideas and delivering the way through which concepts can be applied practically and also suggesting useful reading material too. Majority of the executives, strongly believe in keeping the customer as their primary focus that is understood as the key to business long term success and stability. Yet, there are few companies who actually put this theory into practice, while other do not give the needed attention to the management of marketing. If we take Oldsmobile as an example, it was one of those companies who since the 1980s was enjoying a time of glorious reputation. However it was only a matter of some years that the company failed to manage the reputation, which they once celebrated. Likewise, General Motors, despite of being a reputable brand continued to invest more and more in its brand repositioning and restructuring. The question arises that why such companies never thought of initiating a brand that serves a different segment, in order to serve an untapped need of the market. In the case of General Motors, the company can even think about bringing vehicles and transport that would suit the need of the increasingly popular segment, i.e. the youngsters. What the companies must realize is that from time to time it needs to expand into other segments, instead of liquidating the brand’s equity, to ensure a future of maximized profits. The major problem with the consumer companies of today, is their intense focus on reinforcing the brand, instead of investing more resources to increase the value to their consumers. Understanding the needs of the customers is as crucial as the brand itself. Further upon the author attempts to clarify the topic by illustrating through the seven examples mentioned in the article. These can be summarized as follows: 1) Create new marketing positions instead of centralizing the whole process on the Brand Manager 2) Create brands targeting the same segment of consumers within the company. 3) Restructure the way the brand equity is measured – use individual calculations.
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