Mid-Term Exam Essay Example | Topics and Well Written Essays - 1250 words

Mid-Term Exam - Essay Example Moreover, it is also defined as influence of knowledge concerning the response of the consumers to the brand marketing. Therefore, brand equity is a function regarding to the choice of consumers in a target market. In fact, the concept of the brand equity occurs though the choices made by customers concerning the products and services, and familiarization of customers with the brands, whereby they have a favorable perception towards distinction of the brand. Maintaining Brand Equity The effort of maintaining the brand equity involves focusing on brand awareness in order to increase the probability of customers familiarizing with the availability of products. In fact, this increases the degree of consumer association with the commodities offer by a certain company. Moreover, there is need to measure the ratio of the marketing niche, which relates to former knowledge concerning the brands. Therefore, creating brand awareness is a substantial way of maintaining the brand equity and bran d recall. The other effort is to facilitate brand recognition of the products by consumers through their prior knowledge. Moreover, there the brand is associated with the deep customer mind concerning the brand, whereby establishing a positive perception about the brand. The other initiative related to the effort to foster brand loyalty, whereby the customer has fear of consuming commodities from other brands, thus they end up remaining loyal to a specific brand which contributes to maintenance of brand equity. Product Life Cycle Concept Introduction stage: this stage involves introduction of the product into the market with an aim of building a clarified identity though promotion to create awareness (Kotler & Keller, 2012). This is the stage before the products are offered to the customers, whereby the product undergoes development process that entails prototyping and various tests. Substantial cost is incurred in at this stage due to the additional distribution expenses. Moreover, there are few customers with the awareness of the products; thus, the sales volumes are low and the profits might have a low or negative figure due to the high cost and the low sales. Growth Stage: at this stage, the sales volume and profitability commences to increase due the appropriate organization of the products, whereby customers from a habit of consuming the products. The company focuses on brand preference the attaining the set objective that involve a set market share. Competition increases at this stage forcing the company to focus on advertisements in order to ensure that customer are convinced to buy the products, though the profits reduces at the end of the growth stage. Maturity stage: there is a continued increase in sales, though there is a decreased rate compare to the past due to competitors offering the same products in the same market. Therefore, the business focuses on maintaining their market share through an extension of the product life cycle, instead of foc using on profits. Decline stage: At this stage, there is a reduction of the sales volume and an alteration of trends due to the inauspicious of economic conditions. There are reduced sales volumes, while market saturation increases due the technical obsolescence and chances in customer tastes and preferences. Profitability is maintained when there is development of brand loyalty, though there are increases in the unit costs and reduced production resulting to constant profits. Innovations in Interactive Television and Online