Theoretical approaches to essence of brand for products of industrial enterprises
Розглянуто теоретичні аспекти розуміння сутності бренду підприємства в історичній перспективі і визначено етапи розвитку теорії бренду. Авторами пропонується пояснення сутності бренду на основі аналізу інтересів основних зацікавлених сторін підприємства. Розроблено логічну модель категоризації конта...
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| Zitieren: | Theoretical approaches to essence of brand for products of industrial enterprises / A.E. Voronkova, S.V. Yatsentyuk // Економіка пром-сті. — 2013. — № 1-2 (61-62). — С. 147-155. — Бібліогр.: 21 назв. — анг. |
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| author | Voronkova, A.E. Yatsentyuk, S.V. |
| author_facet | Voronkova, A.E. Yatsentyuk, S.V. |
| citation_txt | Theoretical approaches to essence of brand for products of industrial enterprises / A.E. Voronkova, S.V. Yatsentyuk // Економіка пром-сті. — 2013. — № 1-2 (61-62). — С. 147-155. — Бібліогр.: 21 назв. — анг. |
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| description | Розглянуто теоретичні аспекти розуміння сутності бренду підприємства в історичній перспективі і визначено етапи розвитку теорії бренду. Авторами пропонується пояснення сутності бренду на основі аналізу інтересів основних зацікавлених сторін підприємства. Розроблено логічну модель категоризації контакторів промислового підприємства.
Ключові слова: бренд, промислові підприємства, зацікавлені сторони, контактор, клієнт, модель.
Рассматриваются теоретические аспекты понимания сущности бренда предприятия в исторической перспективе и определены этапы развития теории бренда. Авторами предлагается объяснение сущности бренда на основе анализа интересов основных заинтересованных сторон предприятия. Разработана логическая модель категоризации контакторов промышленного предприятия.
Ключевые слова: бренд, промышленные предприятия, заинтересованные стороны, контактор, клиент, модель.
The theoretical aspects of understanding the essence of the brand of enterprise in historical perspective are considered, and the stages of the brand theory development are defined. The authors’ explanation of the essence of brand based on the analysis of interests of major stakeholders of an enterprise is proposed. The logical model of categorization of industrial enterprise contactors is developed.
Keywords: brand, industrial enterprise, stakeholders, contactor, customer, model.
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| first_indexed | 2025-12-07T18:26:38Z |
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–––––––––––––––––––––– Економіка промисловості Экономика промышленности ––––––––––––––––––––––
ISSN 1562-109X 147
2013, № 1-2 (61-62)
УДК 658.8 AllaEzhenivnaVoronkova,
Doctor of Economics, Professor,
Volodymyr Dahl East Ukrainian
National University, Lugansk
Stanislav VasіliovychYatsentyuk,
National Mining University
THEORETICAL APPROACHES TO ESSENCE OF BRAND
FOR PRODUCTS OF INDUSTRIAL ENTERPRISES
1. Introduction
An intensive development of market eco-
nomic relations in Ukraine causes significant
changes in the practical approaches to doing
business in all sectors. The implementation of
market values has led to a gradual change in
orientation of enterprises, including industrial
ones, from their own capabilities and needs to
consumers’ requirements. Industrial enterprises
have begun to seek the formation of their stable
perception as a reliable partner, a supplier of
high quality products, etc. More and more man-
agers have begun to think about the formation of
a favorable image of their companies. An inten-
sive introduction of such economic categories as
brand, brand image, etc. into the domestic busi-
ness practices has been started (Fig. 1).
Source: based on the statistical data [1]
Figure 1. Dynamics of the number of patents, trademarks and industrial designs in Ukraine:
IP Filings by years
However, managers and business owners
have faced with the problem of lack of practical
skills to build an effective policy for develop-
ment of brands, and with the large number of
existing approaches to the development of
brands for different markets in foreign literature
and practice. Moreover, if brands in the B2C
market have been consistently included into the
0
5000
10000
15000
20000
25000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Patent Trademark Industrial Design
© A.E. Voronkova,S.V. Yatsentyuk 2013
–––––––––––––––––––––––––– Економіка промисловості Economy of Industry ––––––––––––––––––––––––––
148 ISSN 1562-109X
2013, № 1-2 (61-62)
practice of brand-management, the methods and
tools of brand-management in the market of
products for industrial use (B2B) is still relative-
ly undeveloped. Despite the fact that since 2005
the rating of corporate brands in Ukraine has
been formed annually [2], the practice of brand
management at the level of individual products
is at an early stage of development. However,
the need and the urgency of creation of the
scientifically based theoretical approaches and
practical tools to the brand management in B2B
market are obvious. For industrial enterprises
development of brands is a crucial issue because
of opportunities for intensive development due
to obtaining the unique competitive advantages
on the B2B market. In this case harmonization
of approaches to the brand essence in market of
industrial products is an important problem to be
solved.
Critical analysis of the recent researches
showed that the issue of brand management and
the study of the essence of brands both in B2C
and B2B market have been considered by nu-
merous scientists and business practitioners. The
analysis of the content of the term "brand" as an
economic and management category showed
that in the development of the theory and prac-
tice of management, not only the content of the
branding concept has been transformed, but also
its economic and management semantic essence
has been changed significantly. Approaches of
managers at various levels to understanding the
meaning and importance of establishing an ef-
fective viable brand, its impact on the value of
the company, and its role in the creation of rele-
vant competitive advantage in the market have
been revolutionary changed as well. Even in the
researches of such a prominent scientist and
practitioner in marketing and brand management
as Phillip Kotler interpretation of this term in the
period from 1984 to 2012 had been transforming
from identification of the brand with a trade-
mark [3] to the perception of the brand as a cer-
tain mental and emotional phenomena, which
can be formed only in the minds of consumers,
and the company as a brand owner is able to
only heighten or diminish this perception [4].
It should be mentioned that the analysis of
the national legislation [5, 6] showed that the
terms "brand" and "brand name" (which by the
way are the only attributes of brand identity) are
treated as general marketing terms that unite
brands in "group of combined assets" and are
associated with the product name, formulas, rec-
ipes, technological expertise, and so on. On the
other hand, internally generated brands are not
recognized as intangible assets and are not in-
cluded in a balance sheet. Thus, it can be con-
cluded that there is no organized approach to
understanding the essence of the brand either on
the legislation level or in the scientific re-
searches. Moreover, existing studies are mainly
devoted to the investigation of brands in the
B2C market. It should be taking into account
that the largest share in GDP is obtained by in-
dustrial production. In this case the absence of
common theoretical and practical approaches to
understanding the essence of the brand for the
industrial products is the scientific and practical
problem that should be solved.
So the goal of the presented article is to
determine the stages of development of the
theory of brand on the basis of the critical re-
trospective analysis, to define the basic stake-
holders of the brand, and to consider their inte-
raction in the branding process under the influ-
ence of the internal and external factors.
2. Theoretical approaches to the essence
of brand: retrospective analysis
As mentioned above the original meaning
of the term “brand” was identified with a partic-
ular sign (symbol). However, interpretation of a
brand has been gradually expanded and clari-
fied. Striking examples of meaning transforma-
tion of the term “brand” are the results of critical
analysis of the researches of Ph. Kotler [3], in
which the term “brand” initially wasn’t used
(1984), then it had been identifying with a
trademark (1988 - 2000). After that the empha-
sis had been gradually shifting from material
components of brand (2003) to psychological
ones (2005 - 2007). In recent studies Ph. Kotler
has already stressed that the brand “is more than
just a product, name, logo, symbol, slogan, ...:
all these are just parts of the brand, but not the
brand itself" [4 , p. 34]. In recent studies has
been observed that the brand should be consi-
dered as a certain composition of tangible and
intangible attributes that collectively represent
not only a product or a company but also the
psychological aspects of consumers’ perceptions
–––––––––––––––––––––– Економіка промисловості Экономика промышленности ––––––––––––––––––––––
ISSN 1562-109X 149
2013, № 1-2 (61-62)
of the satisfaction degree of their own particular
needs. For example, J.-J.Lambin notes [5, p.101]
that marketing activities of the company should
be focused not only on selling a product or a
service, but also on solving the problem of buy-
ers by consuming certain goods or services.
So in the process of developing the brand
theory the focus of scientific and practical re-
search have been gradually distributed between
three basic principal approaches:
(i) brand as a trade mark / sign [6, p. 221;
7 p.39];
(ii) brand as an asset of the company [8,
p. 14];
(iii) brand as a psychological perception
of the degree of satisfaction of consumer’s own
needs and wishes [5, p.22].
Scientists, considering the nature of
brand, gradually supplement its traditional inter-
pretation with new features. Retrospective anal-
ysis of existing studies of domestic and foreign
scientists allowed identifying five main stages of
development and improvement of the basic is-
sues to the brand theory (Fig. 2):
Source: composed by the author.
Figure 2. Development of the definition of brand in the retrospective
- І stage – until early 50’s of XX cen-
tury: brand is completely identified with a
trademark, stamp, stigma and used only as an
identifier of producer, fundamentally the term
“brand” is not widely used in scientific termi-
nology;
- II stage – from 50's - to early 80-ies of
XX century: brand is considered mostly as a
trade mark accompanied by a certain set of ver-
bal (word, phrase, name, term, name, slogan,
etc.), visual (symbol design, sign, drawing, col-
or, trademark, logo, emblem, stamp, advertising
(video series), image, font, etc.) and audio (tone,
Brand =
Trademark
Brand
Identity
1950’s
D. Ogilvy
Brand = trade-
mark + verbal,
visual, audio
features
Brand
Image
Brand = trade-
mark + verbal,
visual, audio
features +
psycho-emoti-
onal aspects
Brand
Power
Brand = trade-
mark + verbal,
visual, audio, tac-
tile, material fea-
tures and psycho-
emotional aspects
+ perception
created by the
client
Customer Based
Brand Equity
2000’s
D. Aaker, Ph. Kotler,
K.L. Keller, J.-N. Kap-
ferer, E. Ries& A. Ries,
J. Trout, P. Feldwick
1980’s
D. Aaker
Ph. Kotler
J.-J. Lambin
J. Trout
Tool for diffe-
rentiating
identification
of the producer
Tool for making a
unique selling proposition
in the market
2010
ISO 10668
Tool for increas-
ing brand equity
and brand value
Tool for increasing
brand equity, capital
and profit of the com-
pany, and providing the
unique competitive-
strength
Brand = trademark +
verbal, visual, audio,
tactile, material features
and psycho-emotional
aspects + perception,
created by the client +
assets of enterprise
CBBE + Assets
ofEnterprise
–––––––––––––––––––––––––– Економіка промисловості Economy of Industry ––––––––––––––––––––––––––
150 ISSN 1562-109X
2013, № 1-2 (61-62)
melody, timbre, audio range) properties that are
unique and related to the only brand;
- III stage -from the mid 80’s of XX
century to the early XXI century: brand is con-
sidered in terms of psychological aspects that
not only cover verbal, visual, tactile-material
and audio elements of emotional and psycholog-
ical aspects but also includes sense, promise, set
of perceptions, place in the mind of the buyer,
benefits, beliefs, values, level of confidence,
radical idea, reputation, expectations, stable as-
sociations, events, unique supporting property of
the goods, loyalty, buyer experience, image and
others elements. Except brand identity and brand
image attention is directed to the essence and
procedure of creating brand power;
- IV stage - the beginning of the XXI
century: brand is considered as capital which is
formed through the perception of the brand buy-
er at psycho-emotional level and creates a brand
value (Customer Based Brand Equity);
- V phase - from 2010 to the present:
brand is considered as a complex ordered collec-
tion of verbal, visual, tactile, physical, audio,
emotional and psychological aspects with under-
lining increased importance of financial and
economic characteristics as a basis for the for-
mation of intangible assets and capital of a com-
pany, as well as one of the most powerful and
effective tools to increase the profitability of a
company.
Recent studies have been focused on the
fact that brand should be considered as a com-
plex phenomenon that consists of a set of ele-
ments [9], attributes and values [10, p. 36], men-
tal constructions [11, p. 61], relations with cus-
tomers [12, p. 27], and so on. S. Zyman empha-
sizes that brands are the most important asset of
the company, which provides income [13, p
131]. L. Ivanov also notes that brand is the
second one in importance after human resource
assets [14, p 155]. This aspect is particularly
important in terms of creating an effective orga-
nizational and economic mechanism of forma-
tion and development of brand products for in-
dustrial use, because the ability of a brand to
create an additional income, to be an asset and
to create capital of an enterprise gives an oppor-
tunity to represent a brand as an object for man-
agement decision-making to ensure long-term
sustainable development of an enterprise, to
create its undeniable competitive advantages in
the market. Moreover, V. Pustotin emphasizes
[15] that, unlike an ordinary trademark, a brand
acts as a guarantor of future sales. Thus, the ex-
istence of a brand not only ensures the formation
of profit and equity in the current period, but
also causes a certain flow of financial resources
on more favorable terms in the future. More fa-
vorable terms should be considered as readiness
of the client to buy a given product (loyalty,
commitment to the brand [16 S. 20-23]), pay a
higher price for a brand [10 P. 128], buy new
copies not only if it’s necessary, but also as a
status process in order to support his own image,
reduce risks through simplified consumer’s
brand awareness, thereby providing additional
sales.
Analyzing the definition of the brand,
which is presented in the International Standard
ISO 10668:2010 (E) [17], three key positions
that are fundamental for further research should
be underlined:
(i) brand should be considered as an
ordered collection of certain tangible and intang-
ible properties and attributes, which together
form a psycho-emotional brand perception;
(ii) formation and development of the
brand should be targeted on creating a mental
and emotional perception not only by brand con-
sumers, but by all groups of stakeholders;
(iii) brand as an intangible asset can
create some economic benefit, and has a value
that is predictable and can be defined and di-
rected at the growth.
3. Brands’ stakeholders: defining the
categories
Based on the above analysis, the groups
of stakeholders are differentiated by two basic
criteria: understanding of brand identity and
purpose of its existence can be defined. Regard-
ing to the chosen criteria of the differentiation of
the brand definitions its expedient to separate
the following groups of the internal and external
stakeholders:
(i) internal stakeholders: brand spon-
sors (manufacturer of a brand, brand owner and
licensees) and the staff of an enterprise – manu-
facturer of the brand;
(ii) external stakeholders: buyers / con-
sumers / customers, potential investors, partners,
–––––––––––––––––––––– Економіка промисловості Экономика промышленности ––––––––––––––––––––––
ISSN 1562-109X 151
2013, № 1-2 (61-62)
external regulators, contactors and observers,
mass communication that is not brand partners.
Relationships between such stakeholders
as managers and owners of a brand, brand part-
ners will be in focus in the following studies.
Let’s pay an attention to the brand perception by
buyers / consumers / customers and contactors
of the brand.
No doubt it can be argued that the key ex-
ternal stakeholders of any brand both in the
market of consumer goods and in the B2B mar-
ket are from the category of “buyers / consumers
/ customers”. In this case, it should be clearly
identified which individuals should be attributed
to the group. This will allow formulating the
essence of the brand and identifying features of
the brand formation in the B2B market.
It should be mentioned that according to
the Ukrainian law [18, p. 1] the consumer is an
individual who purchases, orders, uses or in-
tends to purchase or order products for personal
use, not directly related to business activities
and performance of employee’s the duty. Thus,
considering the B2B market it can be argued
that in terms of legislation in B2B markets con-
sumers do not exist at all, because contactors are
mostly entities that use purchased product or
service for the production of their own goods
and services, and individuals are the suppliers of
labor, i.e. employees.
However, this issue can be considered as
controversial one. Consumption is the process of
using physical objects and services, leading to
partial or complete transformation of the con-
sumed product or use the product as a part of
production of higher levels of redistribution. So,
the company by buying resources, raw mate-
rials, receiving certain services and transforming
them in production process consumes them and
expects to achieve a certain level of satisfaction
of its needs.
On the other hand, the consumer may not
always be an initiator of the decision to purchase
a particular product, so he is not always a buyer.
Usually this situation occurs in B2C market
when the initiator of a purchase may be a one
person, the real buyer (i.e. a person who takes
ownership, property / product / service and also
pay a sum of money [19, p. 224]), may be
someone else, and the consumer may be the
third one. However, in B2B market, this situa-
tion is also not an exception. This includes oper-
ating lease transactions, tolling, and buying
goods for resale, when a real buyer may not in-
itiate a purchase (can act on behalf of a consum-
er), unlike the consumer may not use the pur-
chased product and may not evaluate the result
of consumption.
Another inconsistency presented in the
law [19] is that the client is a person who uses
transportation services, financial markets and
other services. Thus, the client is only a service
customer. Such an application of the term
“client” significantly narrows the scope of the
term.
In terms of global economic science and
practice any interested person, with which the
enterprise have any business relationship, can be
considered as a customer (similar to client) [20].
In order to specify the term “customer” for the
purposes of brand theory development the diffe-
rentiation of categories “buyer / consumer / cus-
tomer” by stages of purchase and consumption
(initiator of a purchase, person who decides on
the purchase, pays for the purchased product,
uses it and evaluates the result of consumption)
is presented in the table 1.
Table 1
Differentiation of categories buyer / consumer / customer by stages of buying / consuming
Stages of buying / consuming process Buyer Consumer Customer
Initiator of purchase + / – + / – + / –
Make a decision about purchase + + / – +
Pay for purchase + + / – +
Use the purchased goods and services + / – + + / –
Assess the result of consuming + / – + +
Source: composed by the author.
–––––––––––––––––––––––––– Економіка промисловості Economy of Industry ––––––––––––––––––––––––––
152 ISSN 1562-109X
2013, № 1-2 (61-62)
Thus, the category “customer” (the
Ukrainian analogue of “client”) is more aggre-
gated, because all key points in the process of
purchase and use of goods and services (deci-
sion to purchase, financing and evaluation of
results of consumption), that have an influence
on subsequent decisions about the possible use
of the product / service of the company, are im-
plemented by the client. Accordingly, in the fur-
ther study on determining this target group the
category of customer should be used.
Quite a specific group of stakeholders is
brand contactors and observers, represented by
participants of the market that do not actually or
potentially buy or consume products or services
of a brand but observe the brand, its products
and communications, or contact with the brand
without its purchasing and / or consuming.
In this case it is necessary to differentiate
the relevant contactors by three key factors in
the decision making process in the case of pur-
chasing goods and / or services of the brand:
desire (propensity) to purchase goods or services
of the brand, financial abilities of a contactor,
and accessibility of the product / service of the
brand in distribution channels (Table 2).
As it shown in the table 2, the actual cus-
tomer is a person, who desires to buy a product
or service of the brand, has enough financial
resources (own capital or borrowed funds) for
the act of purchase as well as free access to the
brand.
Table 2
Three-dimensionalmodelfordeterminingthecategoryofcontactors
based on the factors of decision making to purchase the goods and services of the brand
№
Factors
Type of Contactor Desire to purchase
the product / service
of the brand
Financial abilities for
buying the product /
service of the brand
Accessibility of the
product / service of the
brand
1 Exists Sufficient Free Actual customer
Contactors
2 Exists Sufficient Limited / Not available 1st level
prospective customer 3 Exists Inadequate / default Free
4 Default Sufficient Free 2nd level
prospective customer
5 Exists Inadequate / default Limited / Not available Active observer
6 Default Sufficient Limited / Not available
Passive observer 7 Default Inadequate / default Free
8 Default Inadequate / default Limited / Not available
Source: composed by the author.
The first level of contactors is represented
by potential customers, among which the con-
tactors that have a desire to commit the act of
buying a product / service of the brand and fi-
nancial resources to purchase but have limited
access to it or do not have it at all, should be
allocated. This situation indicates a bottleneck in
the strategy and tactics of the brand, which may
be caused by inadequate planning of such direc-
tion of marketing policies as distribution or its
inadequate implementation. This, in turn, re-
flects in the low brand penetration to the distri-
bution channels and the lack of coverage of the
target market in terms of qualitative and quantit-
ative distribution, and finally leads to the lack of
the product / service of the brand available in
contactors’ distribution channels. Nevertheless,
finding a timely solution to this problem will
enable the company - owner of the brand – to
transfer the contactor from category of prospec-
tive customer of the first level to the category of
actual customers.
Those contactors that are financially una-
ble (fully or partially) to become customers of
the brand, but perceive the brand as necessary or
desirable in achieving a certain status or position
in the society, creating own product with suita-
ble quality and level of innovation, forming im-
–––––––––––––––––––––– Економіка промисловості Экономика промышленности ––––––––––––––––––––––
ISSN 1562-109X 153
2013, № 1-2 (61-62)
age of their own corporate brand, etc. should be
considered as the 1st level prospective customers
as well.
This subgroup of contactors is quite inter-
esting in the framework of management of the
formation and development of the brand, be-
cause the presence of desire or interest in being
associated with the brand,and its purchasing,
using, and even just monitoring, creates a sus-
tainable brand perception as something desira-
ble. In favor of its obtaining contactors can even
refuse to consume other goods, services, brands.
As a result, such perception allows widening the
customer base of the brand through the devel-
opment of financial, marketing, promotion and
credit programs (discounts, special lending pro-
grams, promotions, creating cheaper counter-
parts, and so on), which would increase the pur-
chasing capacity of contactors. This may lead to
additional profit of enterprises, diversification of
customers’ portfolio, market expansion, and in-
crease in competitiveness of the whole enter-
prise.
For companies – 1st level prospective cus-
tomer in B2B market – such a situation can arise
because of the limited access to financial re-
sources (own or borrowed) due to external fac-
tors or unstable financial position of the poten-
tial customer. The result of the influence of the
listed factors is the decrease in lending, higher
interest rates on borrowed resources and the
consequent inability to access the relevant prod-
uct / service of the brand. It should be men-
tioned that in case of reduction of negative in-
fluence of external or internal factors that limit
access to financial resources, the potential cus-
tomer wishing to purchase goods and services of
the brand can be immediately transferred to the
category of the actual customer.
Contactor, that is financially capable cus-
tomer of the brand, which for some reason do
not perceive the brand as necessary to consume
is considered as the potential customer of the
second level. In many cases, certain specific
impulse, increasing awareness and implementa-
tion of persuadable action of the owner or man-
ager of the brand is enough for conversion of the
observer into the customer. Moreover, the detec-
tion of such observers allows the company to
identify "bottlenecks" in the strategy of devel-
opment of the brand, which restrain the trans-
formation of observers into customers. On the
other hand the existence of such entities allows
the company to identify additional market nich-
es and to expand the target audience for the
creation and promotion of products and services
of the brand.
As noted above, the presence of contac-
tor’s desire is fundamental in the formation of
mechanism of its transformation into an actual
customer. The group of contactors who want to
own goods or services of the brand, but either
have limited access to the brand or the poor fi-
nancial abilities to its purchase is more compli-
cated for such a transformation. This category of
contactors should be considered as an active
observer. In case of receiving free access to the
goods or services of the brand through the ap-
propriate distribution channels and / or financial
resources they can become a potential customer
of the first level, and then transfer to a category
of actual customers.
No doubt, that a problem for the company
- the owner of the brand is advisability and fea-
sibility of transfer of these contactors to the cat-
egory of actual customers, which is related to
costs and risks tied with promotion in the se-
lected channels of distribution and possible costs
and risks associated with providing access of
contactors to the financial resources. It should
be mentioned that in developed financial market
the problem of the access to financial resources
can be resolved through the use of complex fi-
nancial instruments, which include not only
loans but also insurance of this process. At the
same time the issue of the presence in certain
distribution channels may be associated not only
with certain entrepreneurial risks on driving
product / service to a channel, but also with ex-
ternal barriers, including customs restrictions,
trade quotas, currency instability, underdeve-
lopment and instability of the financial market,
legal restrictions on the presence of certain
goods in the domestic market, etc. Directions for
solving these problems should be included in the
relevant operational, tactical and strategic plans
of the company - the owner of the brand.
Considering the category of contactors,
who do not desire to buy and consume the prod-
uct / service of the brand, it should be noted that
in case of free access of contactors to the finan-
cial resources or product / service of the brand in
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154 ISSN 1562-109X
2013, № 1-2 (61-62)
distribution channels, their attitude towards the
brand becomes passive (passive observer) and
contactors of this category hardly can be con-
verted into prospective customers of the first or
second levels and especially into actual ones.
It should be mentioned, that the situation,
when the contactor has sufficient financial re-
sources but has neither desire to buy a product /
service of the brand nor free access to it, most
often occurs when bringing a new product to the
market and contactor is uninformed about a new
product or service. Some times receiving infor-
mation about certain products and services may
be a factor encouraging the gradual expansion of
the product / service in the market. This is one
of crucial issues for B2B market where new
products for industrial use are not only unknown
but the result of their consumption is quite un-
certain, or their use in the contactor’s production
requires using new or upgrading old technolo-
gies, training personnel, transforming organiza-
tional and / or management system of the cus-
tomer.
In this case the company – brand owner –
should seek not only for channels for spreading
information about the product / service of the
brand through the contactors, but also for ways
to make contactors sure to use, demonstrate both
positive and negative consequences (outcome)
of use in the manufacturing process of the con-
tactor through the relevant test evidence, etc.
Most problematic in terms of conversion a
contactor into a customer are the last two sub-
groups of passive observers:
(i) passive observers, who have nei-
ther the desire nor the financial resources to pur-
chase goods or services of the brand, which are
freely available in the relevant distribution
channels;
(ii) passive observers, who have no
access to the goods / services of the brand, and
have neither the desire nor the financial re-
sources to buy them.
In this case, these two groups can be con-
sidered as non-target audience of the brand and
the issue of converting them into active observ-
ers or, indeed, potential or actual customers
usually lies out of the range of attention of man-
agers of the brand.
However, under conditions of changing at
least one of the factors (Table 2) the first of
these subgroups can become a prospective cus-
tomer of the second level, or even the first level,
while the second subgroup can become an active
observer in the long run, or at least can get clos-
er to it.
It should be taking into account that ex-
pansion of the customer base can gradually de-
crease the productivity of performance of the
enterprise. According to analysts [21, p 8] in
industrial production such a decline, caused
mainly by significant increases in the cost of
attracting new customers, may be up to 14%,
and in services sector - up to 27%.
4. Conclusions.
Thus, the proposed three-dimensional
model of logical analysis of contactors of the
company - owner of the brand – allows us to
identify opportunities of contactors in convert-
ing them into the actual customers and to moni-
tor changes in their position. This should be-
come the basis for creation of new or adjustment
of existing strategies for brands.
Based on the general concept of brand
and the results of critical analysis of the existing
brand definitions presented above, it can be ar-
gued that brand should be considered as a trade
mark that has particular value for customers and
contactors, affects them and takes a definite
place in the minds of the relevant market enti-
ties, forming a rational and psychical perception
of a brand, creates signals for its purchase, con-
sumption and / or monitoring. Moreover, brand:
(i) exists in a certain economic, social,
political, legal and cultural environment of so-
ciety, the extent of which varies depending on
the level of brand globality (local, national, re-
gional, global), and due to this brand is under
the influence of numerous factors that can acce-
lerate or restrain its development;
(ii) has intangible value, which can be
quantified and presented by material and finan-
cial indicators, and in money means shows its
financial power and ability to create an addition-
al capital to the stockholders;
(iii) is created and exists in the minds of
its real customers and contactors, readiness of
which to buy and consume the goods and ser-
vices of a brand is strongly depended on their
perception of the brand.
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ISSN 1562-109X 155
2013, № 1-2 (61-62)
The following researches should be fo-
cused on the perception of a brand by two
groups: the owners and managers of the brand
and customers. The perception of the brand by
given groups should be considered in several
respects: administrative, financial, economic,
psychological, communicational, innovative,
legal, and social.
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|
| id | nasplib_isofts_kiev_ua-123456789-51239 |
| institution | Digital Library of Periodicals of National Academy of Sciences of Ukraine |
| issn | 1562-109Х |
| language | English |
| last_indexed | 2025-12-07T18:26:38Z |
| publishDate | 2013 |
| publisher | Інститут економіки промисловості НАН України |
| record_format | dspace |
| spelling | Voronkova, A.E. Yatsentyuk, S.V. 2013-11-20T14:15:57Z 2013-11-20T14:15:57Z 2013 Theoretical approaches to essence of brand for products of industrial enterprises / A.E. Voronkova, S.V. Yatsentyuk // Економіка пром-сті. — 2013. — № 1-2 (61-62). — С. 147-155. — Бібліогр.: 21 назв. — анг. 1562-109Х https://nasplib.isofts.kiev.ua/handle/123456789/51239 658.8 Розглянуто теоретичні аспекти розуміння сутності бренду підприємства в історичній перспективі і визначено етапи розвитку теорії бренду. Авторами пропонується пояснення сутності бренду на основі аналізу інтересів основних зацікавлених сторін підприємства. Розроблено логічну модель категоризації контакторів промислового підприємства.
 Ключові слова: бренд, промислові підприємства, зацікавлені сторони, контактор, клієнт, модель. Рассматриваются теоретические аспекты понимания сущности бренда предприятия в исторической перспективе и определены этапы развития теории бренда. Авторами предлагается объяснение сущности бренда на основе анализа интересов основных заинтересованных сторон предприятия. Разработана логическая модель категоризации контакторов промышленного предприятия.
 Ключевые слова: бренд, промышленные предприятия, заинтересованные стороны, контактор, клиент, модель. The theoretical aspects of understanding the essence of the brand of enterprise in historical perspective are considered, and the stages of the brand theory development are defined. The authors’ explanation of the essence of brand based on the analysis of interests of major stakeholders of an enterprise is proposed. The logical model of categorization of industrial enterprise contactors is developed.
 Keywords: brand, industrial enterprise, stakeholders, contactor, customer, model. en Інститут економіки промисловості НАН України Економіка промисловості Макроекономічні та регіональні проблеми розвитку промисловості Theoretical approaches to essence of brand for products of industrial enterprises Теоретичні підходи до сутності бренду продукції промислових підприємств Теоретические подходы к сущности бренда продукции промышленных предприятий Article published earlier |
| spellingShingle | Theoretical approaches to essence of brand for products of industrial enterprises Voronkova, A.E. Yatsentyuk, S.V. Макроекономічні та регіональні проблеми розвитку промисловості |
| title | Theoretical approaches to essence of brand for products of industrial enterprises |
| title_alt | Теоретичні підходи до сутності бренду продукції промислових підприємств Теоретические подходы к сущности бренда продукции промышленных предприятий |
| title_full | Theoretical approaches to essence of brand for products of industrial enterprises |
| title_fullStr | Theoretical approaches to essence of brand for products of industrial enterprises |
| title_full_unstemmed | Theoretical approaches to essence of brand for products of industrial enterprises |
| title_short | Theoretical approaches to essence of brand for products of industrial enterprises |
| title_sort | theoretical approaches to essence of brand for products of industrial enterprises |
| topic | Макроекономічні та регіональні проблеми розвитку промисловості |
| topic_facet | Макроекономічні та регіональні проблеми розвитку промисловості |
| url | https://nasplib.isofts.kiev.ua/handle/123456789/51239 |
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