Thursday, 4 June 2020

The new competition

Prof. Theodore Levitt wrote, “The new competition is not between what
companies can produce in their factories but between what they add to their factory
output in the form of packaging, services, advertising, customer service, financing, delivery
arrangements, warehousing, and things people value.” Thus, a brand is much more than
what AMA definition describes. It is a product, but one that adds other dimensions
differentiating it in some way from other products designed to satisfy the same need
(Kevin Lane Keller, Strategic Brand Management, 2nd ed., 2003). These other differences
include not only tangible and rational aspects related to brand performance, but also
intangible, emotional, and symbolic meanings consumers perceive the brand represents.

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