DOCTORETAIL®

The purpose of this article is to discuss and elaborate the main issues encountered in managing brand equity. In order to achieve this purpose, we first analyse the concept of brand equity; second, we provide a comprehensive framework for managing brand equity; and finally, we distinguish different ways to leverage and measure brand equity.  Brand equity can be regarded as a managerial concept, as a financial intangible asset, as a relationship concept or as a customer-based concept from the perspective of the individual consumer. The main asset dimensions of brand equity can be grouped into brand loyalty, brand awareness, perceived quality and brand associations. There are three alternative ways to leverage brand equity: first building it, second borrowing it, or third buying it. In a general sense, brand equity is defined in terms of the marketing effects uniquely attributable to the brand. That is, brand equity relates to the fact that different outcomes result from t...

Building pharma brands driven by customer-focused innovation will enable companies to differentiate their products in a crowded marketplace Business consultant and author, Peter Drucker, whose thinking greatly contributed to the shape of the modern business organisation, wrote: ‘The aim of marketing is to know and understand the customer so well, the product or service fits him and sells itself’. On that basis my perspective would be that the pharmaceutical industry is not a customer centric business, which uses deep customer understanding to drive innovation at a molecule, brand or commercialisation level. A controversial statement perhaps but let us use it as a hypothesis which we can explore.  What has driven pharma industry success?   The reality is that much of the pharmaceutical industry’s success has been driven by three core areas:  Smart R&D engines (in many cases now faltering)  Effective patent extension, life cycle manageme...