A strong brand is an entry barrier for the competition. It will be difficult for a new entrant to enter a business in which there are established brand identities because the consumers won’t shift to the new entrant that easily. A brand reduces business risks and uncertainties. It generates steady cash flow for the company and helps the company to earn long term profits. Brand extensions earn more profit to the company. The value of a brand to the company is the difference between the marginal revenue and the marginal cost of brand management.
By recognizing the brand as an economic asset, like other business assets, it starts to be managed for growth. Brands generate profits in three ways. The first one is by charging a price premium. For example Levis socks have the same production material used in any non branded socks but the price difference is huge because of the brand name of Levis. The second one is the by creating loyalty. Brand loyalty is what can generate profits even in adverse conditions. The third one is by generating high profit margins. Strong brands will always generate high profit margins.
Successful brands stand for something clear and are consistent over a period of time, a set of values and attributes that are called Brand Equity. Brand assets are driven by brand strengths and they create the brand equity. It is the actual strength of the brand in the eyes of the consumer. Brand value is the actual financial worth of the brand. The core tasks of brand management are to gain market leadership and gain market share.
一个强大的品牌是市场竞争的一个进入壁垒。它将进入一个企业中，有成熟的品牌身份，因为消费者不会转移到新进入者，新进入者很容易。一个品牌可以降低商业风险和不确定性。它产生稳定现金流的公司，帮助企业获得长期利润。品牌延伸赚取更多的利润，公司。一个品牌的公司价值的边际收益和品牌管理的边际成本之间的差异。
通过识别品牌作为一种经济资产，其他业务资产一样，它开始被管理的增长。品牌产生利润的三种方式。第一个是收费的价格溢价。例如牛仔裤袜都用在任何非同一生产材料品牌袜子，但价格差异是巨大的由于利维斯牛仔裤品牌。第二个是通过创造忠诚。什么是品牌忠诚度甚至可以在不利的条件下产生的利润。第三个是产生高利润率。强大的品牌会产生很高的利润率。
成功的品牌代表什么明确和一致在一段时间内，一组被称为品牌资产的价值和属性。品牌资产由品牌优势带动，他们创造的品牌权益。它是在消费者心目中的品牌实力。品牌价值是品牌的实际经济价值。品牌管理的核心任务是获得市场的领导地位，并获得市场份额。
