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210   Chapter Eight

        very inhomogeneous, so the brand image that the company tries to communicate
        to customers will be perceived differently. For example, a particular brand
        image might be very attractive to one age group, but unattractive to all other age
        groups.


        Culture is also an important uncontrollable factor. People from different
        cultural backgrounds and business clients from different corporate cultures
        will see things in different ways, so cultural factors may affect how
        customers perceive the brand image.

        Competitive activity is clearly a very important, uncontrollable factor. The
        number of competitors and the relative strength of competitors will make a
        tremendous impact on brand image. Therefore, it is critical to conduct a
        competitive analysis in the early stages of the brand development process.
        The customer is another uncontrollable factor. Clearly, the company that owns
        the brand cannot control customers. Customers are at the receiving end of the
        brand and its associated products. The products and service must meet the
        needs and wants of customers. The company cannot control the customers,
        but it can try to understand the customers’needs. The ability of the product or
        service to meet the needs of its customers is a critical factor in creating the
        brand loyalty that will determine the success or failure of the brand.


        8.3.2 Overview of the Brand Development Process

        There have been different processes proposed for brand development. These
        processes are fundamentally based on two paradigms. The first paradigm
        views the brand development process as being closely associated with the
        development and marketing of new products (Watkins 1986). In this
        paradigm, the brand development process is called the classical brand man-
        agement process (Aaker 2000) , and it consists of the following steps:
          1. Market exploration
          2. Preliminary financial analysis and screening
          3. Formal business analysis and planning
          4. Product and brand development
          5. Product testing
          6. Product launch

        Recent trends in brand development have elevated brand management to a
        more strategic position within the organization, as defined by the brand
        leadership model (Aaker 2000) and brand asset management process
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