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Although the brand has a long history as a feature of the product (there is evidence that names and labels were placed on products in ancient times), only in the twentieth century did the brand and brand management become a particularly important area of business and marketing activities.
“Branding dates back to the time when the market began to be flooded with uniform mass-produced products that were practically indistinguishable from each other, so the previous simple, direct sales no longer met the needs of companies. Competitive branding has become an imperative of the industrial era, in the context of fabricated identity, together with the product, an image-based difference had to be produced. ” (Klein, 2003: 30).
In today’s dynamic and unstable environment (globalization, demand transformation, increasingly demanding customers, business informatization, strengthening competition, market segmentation) the main indicator of the position and success of the company is the corporate image. Market share and profit significantly depend on it. Creating a corporate image is a complex and time-consuming job that involves many company activities. Corporate image is the result of the interaction of all the experiences, impressions, beliefs and feelings that people have about a company.
Thus, the image is a consequence of the experienced, not the actual quality of the company. This psychological construction directly determines business or market behavior towards the product and the company, and it can be both positive and negative.