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ANALYSIS: The brand - a vital element in the communication process

In the current economic situation, is it necessary to support the image of a company by building a strong brand or this action is a simple tool from the arsenal of marketing strategies, designed to distract the attention from the other essential problems? Theoretically at least, there's a chance to tip the balance toward the second option in centralized economies, where competition is virtually non-existent, and prices are managed by public authorities. On the contrary, on a free market the absence of a brand can be treated on long-term as a suicide attempt. Any company operating in a highly competitive context can not resist and therefore sell products without creating their specific identity. This assertion applies including when the offer is dominated by a small number of companies that, even assuming the fact that they ignores some classical methods of promotion, can never give up the most vital element of identification - which is the brand. For at least a decade, in Romania, the capitalist economy was deficient including on this chapter. During that period, local companies were forced to capitalize (through the acquisition of technology, construction of offices, creation of distribution networks, etc.) so that the allocation of resources for communication was sporadic and, in some cases, nonexistent. Except the multinationals that have exported in our country, along with products/services, also some advanced marketing concepts, most local companies have worked for a long period without any commercial identity. Moreover, this was not seen as a major handicap, given the strength of the example of competitors who have acted likewise. This habit will vanish soon, if only for the simple reason that information technology, elimination of trade barriers imposed by European regulations and, in a general sense, the accelerated globalization process itself, will generate a strong market integration. In this abundance of supply, the brand will regain its natural position and the costs for such support will become a compulsory expenditures chapter.
 

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