Critically evaluate the extent to which budget hotel brandsrequire Essay

Critically evaluate the extent to which budget hotel brandsrequire effective brand management in the current post recession envi - Essay Example It was during this period that a sandal maker based in Syria mentioned his name on the footwear he was selling so as to keep it distinct from others. During initial years branding was often viewed as naming a good or an article. This follows from the different religious views which stress on naming individuals so as to distinguish them from the rest of the others. The aspect of naming goods has over the years modified itself to what is termed as ‘branding’ in today’s globalised market environment (Jackson & Fulberg, p.51). According to Keller a brand is defined as â€Å"a set of mental associations held by the consumer, which ad to the perceived value of a product or service† (Kapferer, p.10). The importance of brands could be analysed from the fact that well known brands like Coca Cola, Kellogg’s and Apple are being valued in billions just because of the power of their names (or brands). The present study would focus on the importance of branding an d brand image in case of budget hotels especially in the light of the recent financial meltdown and the competitive forces prevalent in the market. Importance of Brand Management The present age of business is being widely debated as the age of consumerism. In this age customers are in the driver’s seat as firms are trying to aggressively woo customers by offering them greater value for every purchase. The competitive environment in the consumer markets has forced organizations to distinguish their product and service offering from the rest of its competitors (Budzinski, p.13). Branding has therefore assumed considerable importance for business organizations as it is being largely used by the customers to distinguish the product and service offering among the wide array of choices available in the market. The importance of branding could be analysed from the fact that branding plays a key role in the positioning of a firm’s product or service in the minds of the consum er. This is important considering the fact that positioning plays a key role in the consumer’s buying behaviour process. Branding assumes significant importance as it distinguishes the product or service offering of different organizations and also gives uniqueness to a particular product or service in the consumer markets. In the present age it has often been argued that consumers are more intended towards purchasing a brand instead of a product. Branding also has a role in the aspect of marketing communication as they are essentially used by firms to promote their product in the market. For example Cadbury uses its famous tagline â€Å"I love Cadbury† to make a connection with its target market audience (Elliot & Percy, p.229-230). Brand equity is a broad term and includes four critical aspects namely awareness of a brand, loyalty towards a brand, quality and image. The combined effect of these four aspects plays a critical role in determining the profitability and s ustainability of a brand in the market. For example the success story of the fast service chain of restaurants could be traced to the effectiveness by which the marketer has handled these four underlying aspects of brand equity to build a formidable brand image (Oh & Pizam, p.103-104). Global Recession and Budget Hotels The global recession had large scale impacts on the business prospects of budget hotels. The financial meltdown resulted in rise of unemployment coupled with decrease in the income levels of the individuals. It