ECON-2006EG Study Guide - Quiz Guide: Switching Barriers, Brand Management, Transaction Cost
7 Mar 2021
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Document Summary
Describes the first approach to bm and hence the foundation for how brands have been (and are) managed. Procter & gamble gave birth to the first management practices of bm with its product management approach. Builds on one of the most fundamental concepts in marketing: the idea that the right marketing mix will generate optimal sales. It is assumed that the brand can be controlled and managed by the company. If the marketing mix is right, the the brand will be successful and strong. Consumers are perceived to be receivers of marketing messages, who analyze and evaluate brand messages rationally. Origin in the theoretical model of exchange derived from-economic theory and marketing. Adam smith: the market"s invisible hand would allocate resources in a way that optimizes both the individual and societal beneficial use of available resources assumption that individuals purse self-interest and attempt to maximize revenue or utility function.
