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Edited by Bernd H. Schmitt and David L. Rogers
Chapter 18: Why Does Branding Fail? Ten Barriers to Branding
Noriyuki Nakai While much has been argued regarding the strength of the brand and the commitment it brings to the customer, an overlooked area in the ﬁeld of brand management is the barriers managers face when undertaking a branding strategy. Accordingly, this chapter surveys ten of the most common causes of a brand’s failure, and the important lessons that can be learned from them. BARRIER 1: LACK OF ORGANIZATIONAL COMMITMENT The ﬁrst of these reasons for failure is the lack of organizational commitment. For example, let us take an example of a company that is looking to develop a cutting edge, innovative personal computer brand. It will have to accordingly determine the speciﬁcations, design, price, communications, sales channels, production processes, customer services and other key elements that together make the customer feel that it is ‘innovative’. A failure on any dimension signals an overall brand failure. A brand is not just an identiﬁer but is something substantial which creates a particular experience for the customer. Branding, the process to create this experience, must involve by nature a variety of professionals. With a brand manager at the center, technical, manufacturing, research, sales, advertising, promotion, customer service, legal, ﬁnance, human resources and other professionals have to work seamlessly together to create the unique brand experiences. In essence, branding is not just a brand manager’s job but a process of integrating various professional functions led by the brand manager. Today’s corporations have a complex structure of functions meticulously divided by boundaries....
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