Brand Contract

The concept of brand contract revolves around brand’s ability to always stay up to the expectations of consumers. Owing to the associations developed with the brands of their choice, consumers do not want to see those brands deviate from the strong impressions and image they have about those brands.
What consumers expect of brands is a positive change and development in relation to changing technologies, environment, and any other factors that may have a bearing on consumer behavior. To continually remain in favor of consumers, brands uphold consumers’ franchise by remaining up-to-date. This is the only way for brands to remain relevant.
For brands staying contemporary means bringing about innovations and living up to consumers’ likes and expectations. This further means engaging into a “contract”. In other words, brands must respect the contract, attract customers and assume all implications, which they do through fulfilling the promises.
Brands make promises with the customers by providing benefits and developing associations. Any deviations - lowering of quality, non-availability of brands at the point of customers’ choice, or not keeping pace with changing technologies - amount to not keeping the promise and hence in customers’ perception breaching the “contract”. The contract, as such, is not legal; it is purely economic and emotional in nature.

Brand Value and its Measurement

Branding has emerged as a corporate strategy in the recent times. All business organizations in all sectors have embraced the strategy of building their identity through their corporate brands besides the product related brands. Branding is definitely a marketing strategy. However the strategy of investing into brand building and managing the reputation of the corporate brand goes beyond marketing. Branding is considered to be a strategy that is driven and managed by the CEO or the organization along with the senior management as well as marketing heads. Over the recent years, we see new concepts of brand value, brand power and brand equity etc. being coined and measured.

If marketing professionals found it difficult to justify and obtain sanctions for the brand promotional activity, today they no longer need to worry. Brand value and expenses towards brand building have become an accepted part of the balance sheet. Capitalizing the brand value and the expenses towards meeting the brand promotion are budgeted and accounted for in the balance sheets and in many cases the ROI of a brand is also calculated to reflect the brand value status over time.

Brand management has gained prominence in recent times. The fact that we have global brands that have been well established for over fifty years goes on to prove the fact that brands certainly have the power to make or break in the markets. Goodyear, Coco Cola, Gillette, Nestle, Kelloggs, Schweppes, Brooke bond etc have been around for a very long time and have gained certain brand power to drive growth through brand reputation and relationship with the consumers.

Marketers have realized the growing power of brands and have begun to nurture the brand image and cultivate value through brand ambassadors. Most of the lifestyle and luxury brands globally and locally have well known actors and sports persons etc as brand ambassadors. Through the persona of the brand ambassadors, the marketers derive the power to connect with the consumers and build brand loyalty. Realizing the brand power also calls for working on the product quality and continuous modification both in the product as well as in the promotion of brand ambassadors. Building and growing strong brand at a global level calls for the entire organization to be brand oriented. The best example of building and realizing strong brand power and unleashing the brand value is Apple. If you think that the entire world outside is an Apple fan, you are right. But the entire organization within also worship their brand too. All of the strategies, decisions as well as day to day business decisions at all levels are directed towards promotion of and strengthening of the apple brand. The entire organization believes in the brand and all business processes are driven to build the brand and deliver superior customer experience through the brand. Apple as a global brand is perhaps the best example of a successful corporate brand.

As much as the corporate strategy has got to account for the branding strategy, the marketing has also to ensure that they work on the different aspects of the brand packaging, design, etc and keep working on the brand so that it is consistent with the changing times, markets, consumer expectations and taste etc.

The brands have their own value. The market leadership and profitability of a certain product or business is realized through the brand value. Growing the brand power and using the brand value as a driver to increase profitability as well as the market calls for expert management of branding. Maintaining the leadership of a brand calls for strategic planning in the long term perspective.

Brand Value Measurement
Brands have a certain value in the market as well as in the balance sheets of the organization that owns the brand. This is a matter that has been agreed upon by the industry. The accounting of the brand value and the methodology for calculation of the brand value is widely debated. When organizations pay a huge premium or goodwill to acquire a brand, it becomes a strategic decision. However accounting for the premium paid is a matter that is discussed and debated by many in the industry.

No doubt accountants would like to assign a tangible value to every asset owned by the company and brand value paid to acquire a particular brand and the business is also considered to be an asset. One of the systems followed by UK based business organizations is that they capitalize the entire value paid for acquiring the business and the same is depreciated over a period of time.

Interbrand, the branding company has proposed a different method of accounting for the brand value. This method as well as the other methods that are proposed by industry experts take into account the future sales potential of the brand as well as its current market share to arrive at a definitive figure in terms of brand equity or brand power.

Accordingly one of the models followed by the industry accounts for the net profit earned by the brand in the last three consecutive years in terms of value. To this, is added a score that is derived out of measuring certain key factors associated with the brand like brand leadership, market share, trend, loyalty etc. Certain weight age is given to each of the factors and the total score is then converted into a certain value with the help of a multiple that is again derived out of a market study conducted for that particular sector.

Similarly there are several other models and methods that have been proposed by experts in the industry. All of the models use a combination of qualitative and quantitative factors to arrive at a measurable value in terms of Brand Equity. Some of the well known models are Brand Equity Index, Consumer Brand Equity Brand Asset by Longman Moran and Leo Burnett, Conversion Model Equity Monitor etc. The factors included in the above vary from Quality of the brand to Customer attitude, perception, market share, price band, durability etc.

A reasonable model to measure brand equity becomes essential not only for the accountants but for the business Organization that is looking out to buy a brand. Valuation of a brand and fixing the right price or premium for the brand needs a proven methodology and model that can guide the decision making. It is also true that one model cannot satisfy the finance and accounts personnel as well as the business managers, for each one’s perceptions and purpose of evaluation is different. When brands are key to the growth and business strategy of the Organizations, the decision makers would definitely need proven and strong models to guide them for decision making. Besides the models they would need to analyze the brand equity from many other points of view of product portfolio, growth potential of the brand to see if a particular brand is the right choice for them. If there exists a strategic synergy between the brand and the buyer’s business needs, then the brand value is likely to change and the buyer might find that he is required to pay a premium over and above the perceived brand value. At what price does it make sense to acquire the brand is a decision that is critical to the buyer. Brand value models can certainly aid him in this decision making process.

Brand Vision

Purpose of brand vision
To earn the right level of profitability, you have to leverage your brand rightly. It is here that we start treating brand as an asset and manage that asset by having a vision.
Vision fulfills three basic purposes

• Consensus among management
• Commits company to research
• Mandates telling all stakeholders

Strategic Brand Management

Mission
A mission statement speaks of the present form of business, the products it is dealing in, the customers it is serving, and the areas in which it is operating etc. In other words, a mission is all about achievement of present objectives.
It also talks of the commitments and values that are needed to let the company achieve its objectives. It does not speak beyond that. But, the process of strategic management does not stop there. It makes it imperative that managers see beyond the mission, or the present, to determine a long-term direction that the company must take for tomorrow. Nothing is static. The dynamism of the market necessitates that managers must see the impact of:

• changing technologies
• changing lifestyles
• changing needs of customers
• changing benchmarks of quality, and
• changing competition and overall conditions

Brand Challenges

If brands are strong and powerful, they also face challenges regarding sustenance and growth. These challenges vary in degree and intensity for various markets.
The basic determinant of challenges is the level to which a certain market is mature. Maturity holds the key. If a market is very mature, the challenges are intense; if a market is less mature, meaning still growing and robust, the challenges are less strong.
Markets become mature due to overall purchasing levels reaching a plateau. This simply implies that demand in the category is no longer elastic and has no further room to grow. And, the consumers are buying various brands in a certain pattern of frequency and quantities which are optimal and, hence, their buying behavior will not give further impetus to overall growth of the category. We can also call it maturity of the economic cycle.
Under the circumstances just explained, markets seem to lose vitality in terms of growth, but not in terms of availability of loads of products. This can be further simplified by saying that the size of the pie reaches the most optimal level from where it does not increase unless there is growth in population. Whatever changes take place they take place within the pie in the shape of competitive wars.
Competitive pressures and wars have led to a few difficult situations that companies have to face as challenges. The following are the typical ones:

Brand Manifestations / Fundamentals

To manage your brand as an asset, full of value and power, you must understand a few fundamentals that form the basis of brand asset management. Armed with that understanding, you, as brand managers, will do your job right only if you understand brands correctly.
The following four fundamentals will allow you to develop with ease and consistency the ability to build different strategic steps involved in creating a brand or refreshing an existing one.

• Dimensions
• Characteristics
• Levels
• Brand Owners’ 

Understanding Brands - Introduction

Brand management begins with having a thorough knowledge of the term “brand”. It includes developing a promise, making that promise and maintaining it. It means defining the brand, positioning the brand, and delivering the brand. Brand management is nothing but an art of creating and sustaining the brand. Branding makes customers committed to your business. A strong brand differentiates your products from the competitors. It gives a quality image to your business.
Brand management includes managing the tangible and intangible characteristics of brand. In case of product brands, the tangibles include the product itself, price, packaging, etc. While in case of service brands, the tangibles include the customers’ experience. The intangibles include emotional connections with the product / service.
Branding is assembling of various marketing mix medium into a whole so as to give you an identity. It is nothing but capturing your customers mind with your brand name. It gives an image of an experienced, huge and reliable business.

Clearing and Settlement

The Mechanism
Clearing system is a mechanism for calculating and determining each bank’s ‘payments / receipts’ position within the Commercial banks forming part of the system. A clearing system is governed by its rules which, among other things, include ‘timing’ for presentation and return of payment instruments.

Settlement is the transfer of value to discharge a payment obligation. Settlement may be within the branch or within the bank or among other banks. The first two being fairly easy, it is the last part of settlement that involves more banks and settlement is effected through the State Bank of Pakistan. Logistical help since the last few years is obtained from National Institutional Facilitation Technologies (NIFT).

Handling of Customers

Handling of Customers in certain circumstances.
During group discussions many people never speak up because they are afraid that people will judge them for saying something stupid. This fear is not really justified. Generally, people are much more accepting than we imagine. In fact most people are dealing with exactly the same fears. By making an effort to speak up at least once in every group discussion you will become a better public speaker. You will instill more confidence in your thoughts and will be recognized as a leader by your peers.

1. Handling of Customers in certain circumstances.
2. Powers of attorney / Mandate
3. Safe custody of customer’s valuables and lockers.

Handling of Customer Accounts in the following Circumstances.

1. Countermand of payment (Stop Payment of Cheque)
2. Notice of Customer’s death
3. Notice of adjudication of customer as an insolvent
4. Notice of customer’s insanity
5. Legal orders attaching customer’s account — A garnishee order 

{insolvent = a person who is unable to pay his debts as they arise.}

Opening accounts for various types of customers

Opening accounts for various types of customers
Opening of Account - Every adult and sane individual can open a bank account, provided he is not insolvent or an un-discharged bankrupt. Joint account can also be opened by two or more individuals. Similarly a group of persons having formed themselves into a ‘partnership firm’ can also open a ‘partnership account’, provided the maximum number of partners is twenty. Whenever the maximum number exceeds this limit, law requires that it should get itself incorporated as a joint stock company under the Companies Ordinance 1984.

A bank account is opened with an initial deposit of money generally in the form of cash. To this end an account opening form is used. The account opening form is required to be completed and signed by the prospective account holder and accepted by the branch Manager or an official duly authorized in this behalf. The completion and signing of the account opening form by the prospective customer and its subsequent acceptance by the bank and deposit of initial amount constitutes a contractual relationship between the account holder and the bank. 

Know your Customer and Anti Money Laundering (AML)

The only way your knowledge and vocabulary can grow is by looking up the meanings of all unfamiliar words in a good New Edition Dictionary. Specialized Dictionaries like the ones on (1) Law and (2) banking and finance can increase your understanding of technical terms and concepts.
Make a resolution that you will look up the words, whose meanings are not clear to you.

Know your Customer and Anti Money Laundering (AML)
(Story BCCI convicted of money laundering and liquidated world wide.)

What is Money Laundering?
Money laundering can be defined as the process whereby the true identity of illegally obtained money is changed or concealed so that it appears to have originated from a legitimate source.

Prudential Regulations for Banks

If the banks in Pakistan violate these Prudential Regulations they are liable to face heavy financial penalties and the bank officers can face disciplinary action by the State Bank of Pakistan and the bank can lose their banking licence besides heavy financial penalties.)

Nature of Prudential Regulations:
Prudential Regulations are both preventive and protective techniques. Preventive regulations forestall crises by reducing the risks facing banks such as controlling and monitoring the management of banks’ capital, solvency (CHECK THE MEANINGS OF SOLVENCY IN THE COMPUTER) and liquidity standards and large exposure limits. Protective techniques provide support to banks once a crisis threatens; lender-of-the-last-resort facilities are of immediate benefits.

In case of Pakistani banks branches functioning overseas the Prudential Regulations or legal requirements of host country shall prevail. The Prudential Regulations do not supersede other directives issued by SBP from time to time.

Literacy and Economic Development

Literacy and Economic Development

Economic prosperity of a country entirely depends on the economic resources it has. These economic resources are classified as Natural resources, financial resources and Human resources. Natural resources comprise of fertile land, ideal topography, abundant forests, sufficient mineral resources and excess water supply. Financial resources include the capital needed for the economic activities. Human resources include the population, its growth rate, skills, standard of living and working capacity of the labour force. According to modern economists a country leading in natural resources has more opportunities to develop than that of a country lacking in such resources. But only abundant availability of natural resources does not make sure the economic development of a country, these resources need to be utilized at their optimum. And this is only possible when efficient manpower utilizes these resources. The developed economy of Japan is the open example in this regard whereby Japan had overcome the deficiency of Natural resources by excelling in Human resources. In other words it can be said that economic development only occurs when Natural and Financial resources are maintained properly by efficient Human resources.

On the other hand if Human resources fail to maintain Natural and Financial resources, these resources may be misutilized, underutilized or unutilized and cause economic inefficiency, for instance underdeveloped countries of the world like Afghanistan has excess of mineral resources but the economy is not developed due to lack of Human resources. Another example is Pakistan, where we have sufficient mineral resources but due to lack of skilled manpower we cannot utilize all those resources, and as a result of such we are not in the queue of developed countries.

Good Governance

Good Governance

The concept of "governance" is not new. It is as old as human civilization. Simply put "governance" means: the process of decision-making and the process by which decisions are implemented (or not implemented). Governance can be used in several contexts such as corporate governance, international governance, national governance and local governance.

Since governance is the process of decision-making and the process by which decisions are implemented, an analysis of governance focuses on the formal and informal actors involved in decision-making and implementing the decisions made and the formal and informal structures that have been set in place to arrive at and implement the decision.

Government is one of the actors in governance. Other actors involved in governance vary depending on the level of government that is under discussion. In rural areas, for example, other actors may include influential land lords, associations of peasant farmers, cooperatives, NGOs, research institutes, religious leaders, finance institutions political parties, the military etc. The situation in urban areas is much more complex. Figure 1 provides the interconnections between actors involved in urban governance. At the national level, in addition to the above actors, media, lobbyists, international donors, multi-national corporations, etc. may play a role in decision-making or in influencing the decision-making process.

Humanism

Humanism

The exact time when the term Humanism was first adopted is still unknown. It is,however, certain that its roots are somewhere in Italy. Before going to the function of humanism i'd like to discuss the confusions and controversies related to this term. 

Because of the variety of meanings, and unclear descriptions of authors and speakers it can easily become a source of confusion, so lets classify the varieties of humanism first.

1. Literary Humanism is a devotion to the humanities or literary culture. 
2. Renaissance Humanism which deals with the learning and the ability of human beings to determine for themselves truth and falsehood. 
3. Cultural Humanism is the rational and empirical tradition that originated largely in ancient Greece and Rome, evolved throughout European history, and now constitutes a basic part of the Western approach to science, political theory, ethics, and law. 
4. Philosphical Humanism is any outlook or way of life centered on human need and interest. Philosophical humanism is further catagorized as Christian humanism and Modern Humanism.(I'll discuss Philosophical humanism in detail first then the other varieties of Humanism)