INTRODUCTION

Companies and individuals are in business with their brands in globalizing world. Instead of them brands are in competition now. Brands are in front of us every moment of our lives is still a closed box. Brands that benefit both entrepreneurs and companies in many ways (psychologial, financial, marketing etc.) is quite necessary to examine. Most important factor in selecting this concept as a graduation project was that it can not be ignored the importance of brand and branding. Because of that brand will generate first part of this project. Besides, during the research, as well as seeing that building brand is essentially how long, complex and arduous process and always came across the concept of brand equity in this process which become most important part in building brand. All the characteristics (awareness, loyalty, image, and quality) that make it brand are consisted and evaluated in this concept so in second and main chapter of this project will examine in this subject. However, despite turkish brands have all features of brands and fulfill the requirements, can not get a place among worlds most valuable brands is eye-catching. Due to this situation I will examined this problem and reasons in last chapter of project.

CHAPTER ONE

BRAND AND BUILDING BRAND

1. 1. BRANDING IN A HISTORICAL PERSPECTIVE The process of branding has been around since the cavemen first painted the walls in the history of mankind. The oldest paintings in history on the walls of the Lascaux Caves in France date back to 15,000 B.C. and these bison paintings are marked also by handprints as a form of ownership declaration. The marking of craftwork with seals for ownership and quality claims was a common practice in ancient civilizations. Egyptian, Roman, Greek, and Chinese consumers knew not only who to praise and make repeat purchases from, but also who to blame if there was a problem with the product (Perry, Wisnom 2003, p.1). In 1266, in order to make tax collection easier, England passed the Bakers Marking Law, which required the bakers to stamp bread loaves in order to indicate origin (Perry, Wisnom, 2003, p.2). Besides artisan guilds engaged in commerce started to avoid interference their goods with lower level goods for both theirselves and their buyers (Yamankaradeniz, 2007, p.11). This was also the time when spirit makers were required by

customs and excises to burn their oak barrels of Scotch whisky with a hot iron symbol. No more than literate audience, have led to in form of symbols the formation of these signs (brands).(Yamankaradeniz,2007,p.11). These practices were considered to be among the first modern occurrences of commercial branding (Perry, Wisnom, 2003, p.2). Historians often pinpoint the Wedgwood & Bentley brand of luxury china in eighteenth century Britain as one of the first successful brand creations during the era of industrialization. Wedgwood & Bentley, with their catalogues and showrooms that are designed to convey a sense of shoppingexperience, seemed to have foreseen the approach of contemporary brand management. They have created a high status image around their product through a successful marketing campaign by which they constructed a link between their products and aristocracy. This brand image they have created allowed Wedgwood & Bentley to charge premium prices for their products, establishing the concept of brand as much more than just identifying the material qualities of a product (Arvidsson, 2006, p.66). After the industrial revolution altered the way of consumption by introducing mass production which made available the products that were once unavailable to masses, branding became more important as it was the only way for the consumer to differentiate between an ever increasing numbers of similar products. By the end of the nineteenth century sellers started to promote their branded products through full page advertisements in newspapers (Strasser, 1989, p.90). This was the start of the communication between the firm and the consumer. Fast forward a century and this one-way communication has become a full-fledged orchestra, whereby the authors of brand stories continuously cocreate the brand, which became not only a product or service but also a vessel for constructing and maintaining self identity and social relationships (Yeniciolu, 2006, p.9). Therefore, brands and their symbolic aspects have been a part of human life since the caveman first painted the walls and they have been becoming more essential in everyday life since then.

1.2. UNDERSTANDING BRAND CONCEPT AND DEFINITIONS Apparently; everyone is talking about what is brand? or what is not a brand? Today brand became the most popular used word but when we ask the any person about definition of brand, we receives varies answers. Some people think that brand is a name or commercial issue and some of them thinks that it is a product moreover a commitment (Knapp,2000,p.5). Lets see the who thinks in what way? Historicaly brand; distinguising a manufacturer's goods and services from others, defined them and born in need to specify the ownership and ancient has been existing since ancient time. Brand comes from in old Scandinavian literature brandr word which means to burn and was used between 1150-1350 years.(Blackett T. ,Board B. ,1999. p.2).

Because in those times people signed on animals by burning their skins to get to know and to distinguish their own animals (Gezer D., 2006, p.4). Biggest part of brand definitions seems in literature, based on American Marketing Association (1960) s definition that doesnt consider benefits of brand to consumers and as the basis for the differentiation of business and product-oriented approach emphasizes the importance of the visual characteristics (Gezer D., 2006, p.4). According to this traditional definition brand is; A name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name.(AmericanMarketingAssociation-http://www.marketingpower.com/Pages/default.aspx) Random House Dictionary of The English defines brand as a named after the well-known trademark as the product or service.

To Leslie De Chernatony ; Brands are intangible assets that delight customers, glue organisations, reward shareholders, enhance the profitability of distributors, give meaning to employees, stretch corporations and benefit society. (Gezer, 2006, p.4). Marty Neumeier thinks about; brand is; a persons gut feeling about a product, service or company. It is a GUT FEELING because we are all emotional intuitive beings, despite our best efforts to be rational. It is a PERSONs gut feelings because in the end the brand is defined by individuals not by companies, markets, or the so-called general public. Each person creates his or her own version of it. While companies cant control his process, they can influence it by communicating the qualities that make this product different than that product. When enough individuals arrive at the same gut feeling, a company can be said to have a brand (Neumeier, M. 2003, p.2). According to; Philip Kotler A brand is a name , term, symbol , or design , or a combination of them , intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors (Kotler,P.,2008, p.443, Lamb, Hair, McDaniel, 1998, p.297). For Peter Farquhar ; Brand is a name, term ,symbol or design that inceases value of a particular product or service beyond the functional purpose thus provide value for organization, trade and consumers. With this definition Farguhar has been one of the authors who denote relation between brand and value added size (Gezer, 2006, P.5.). After all different definitions; basically brand is a form of self-expression alright with product to consumer. Quality is one of the most effective weapons used by the brand while expressing themselves. Quality is one of the most effective weapons used by the brand while expressing themselves. Consumers directed towards products and brands that provided maximizing benefits in the moment of consumption (Yamankaradeniz, 2007, p.10). Ask consumers to describe a branded product, and they will not usually reply with descriptions of terms, symbols, and designs. They will reply with adjectives describing the qualities of the brand. Moreover, as any international market researcher will testify,

consumers around the world are remarkably consistent. Brands are recognized and understood on an emotional level, in a way that most of their founders would find astonishing (Arnold, 1992, p.2).

1.3. FEATURES OF BRAND Everyday and everywhere we face with brand for every kind of goods and services. Sometimes we use brand name for any product instead of their name. For instance; when we need tissue paper ,ask people as a Selpak but Selpak is a brand name not goods name so being brand has some features and we will see approaches about the features of brand in this part. For Keller; brand has following features: 1- Brand provides benefits that consumers desire. 2- Brand worthes spent labors. 3- Pricing strategy is based on consumers' perceptions of value. 4- Brand is positioned in best way. 5- Brand is consistent. 6- Brand coordinate a lot of marketing activity in order to create brand equity. 7- Administrators know how brand is worth for consumers. 8- Brand has greate support in a long term. 9- The company monitors sources of brand equity (Karacan,2006,p.11).

Developed by Global advertising agency Young & Rubicam and successfully created a strong brand and brand that provides businesses with the permanence of investigating the differences between businesses that failed in this, for that 35,000 mark throughout the world for 30 years has been examining a model that is based on a study of Young and Rubicam Brand Asset Valuator releaved that consist 4 basic elements. Differentiation, conformity, reputation, and knowledge. Most important feature of strong brands is having differentiate position from competitors in market and having a product that provided much more benefit from desired. Secondary most important feature of brand is showing compliance to customers wishes, needs and lifes. Third one is brand reputation which express that customers respect to their brand and found it important to them, as well as the perceipt popularity and market acceptance and quality. Last one is knowledge which is result of differentiation, expression of consumer brand and brand promises knows meaning and shows size of existence of consumers mind (Champell, 2002, p.214). According to Aaker there is 5 important features that strong brands need to have ; brand identity that differentiate brand clearly from the others, A business brand that reflects the relationship with social responsibility, conducting an integrated and continuous contact with the brand image, customer relations that provide convenience customers to identifiying with organizations, symbols and slogans that help to create strong brand personalty and perceived quality with supporting strong brand identity and create positive associations (Aaker,1992, p.57-58).

1. 4. POWER OF BRANDS Branding has big power in industry that is the why every organizations wants branding on their name, on their product or service. Thanks to brand they get attention consumer minds and have good place in their buying decision also brand has a noticable power in global perspective.

Branding has been so successful that companies are now replacing corporate visions and missions with brand visions and missions (Temporal, 2002, p.6). Brands are established as one of the most important driving forces of the globalization phenomenon as they are present in all of these flows at once. Brands, not only travel globally through technoscapes, but also through people who are using them; they facilitate the flow of money in a global sense; and their symbolic meanings are disseminated in landscapes of images (Yeniciolu, 2006, p.18). In order to portray the scale of globalization of brands in the contemporary marketscape one can look at some of the numbers the Worldwatch Institute has published in their website. McDonalds operates 30,000 restaurants in 119 countries and serves 46 million customers each day. Its total revenue was $15.4 billion in 2004. On opening day in Kuwait City, the line for the McDonalds drive-through was 10 kilometers long. Siemens, the German manufacturer of mobile phones, computers, medical supplies, lighting, and transportation systems employs 426,000 people and is represented in 190 countries. In 2002, Siemens net sales amounted to $96.4 billion, of which 79% were international. Coca-Cola sells more than 300 drink brands in over 200 countries. More than 70% of the corporations income originates outside the United States. Coca-Cola employs 60,000 people in Africa alone. Another successful example for showing power of brand in globally is Yahoo!, which was able quickly to build its brand on the benefit of providing transparency as an Internet guide. Today Yahoo!, in its own words, is The only place anyone needs to go find anything, communicate with anyone, or buy anything. (Error! Hyperlink reference not valid., .231)

The power of brands, and the difficulty and expense of establishing them, is indicated by what firms are willing to pay for them.(Aaker,1991,p.8). The marketing battle will be a battle of brands a competition for brand dominance. Business and investors will recognize brands as the companys most valuable assets. This is a critical concept. It is a vision about how to develop, strengthen, defend, and manage a business(Aaker,1991,p.1) The Brand consultancy Interbrand routinely publishes a list of the top 100 global brands by valuation. The leader today is Coca-Cola with a brand worth of nearly $70 billion, which accounts for more than 60% of its market capitalization. Halfway down the list is Xerox with a brand valuation of $6 billion__a whopping 93% of its market cap.(Neumeier,2003,p.12) It will be more important to own markets than to own factories. The only way to own markets is to own market-dominant brands (Aaker,1991,p.1). There were several key factors shared by the high-ranking brands, regardless of their having a luxury or mass-market positioning. Many strong brands did not share every one of the factors listed, but they serve to characterize and differentiate the stronger name from the weaker ones. None of these factors, taken in isolation, can be considered a new finding, but careful attention to maintaining these brand characteristics, as a group, is crucial to a brands continuing success. Specifically, we consider the following factors to have the most influence on power of a brand (Aaker, Biel,1993, p.16) : Longevity : Being around for a long time helps.Being the first to enter a category is even better.Many of the brands occupying positions in the top 100 in a given market have been there for 25 to 50 years, or even longer. Brands that have maintained a consistent presence over the years are better able to utilize the familiarity and understanding a customer has with their products to build momentum and power. Product Category : Some product categories are simply more involving than others. They tend to create higher awreness of the offerings and often higher esteem.Thus, a brands product or service category can be a great help or hindrance in its overall power .

Quality: Although this factor may seem obvious, this study reminds us that quality and reliability are at the base of every brands credibility with the public.Whatever else a company or product stands for, it must first do what it is supposed to do. It should be noted, however, that quality is not necessarily synonymous with luxury. Some prestige products such as Mercedes-Benz and Rolex did rank high on the list whereas other luxury brands like Cadillac and Yves St. Laurent did not do very well. Media Support: The brands ranked highest in share of mind generally spend the Money to make sure they stay visible. A brand such as McDonalds with its retail ubiquity, gains visibility through a strongly branded pysical location in addition to its massive advertising budget. Personality and Imagery: Ideally a brand should do more than just identify the product. Many of the most powerful brands in survey have clear enough images to become almost synonymous wtih their product category, or are able to diffrentiate their offering on the basis of the brand name alone. Disney managers to brand a form of entertainment. Strong brands usually stand for something in the minds of customers. Continuity: The key here is continuity of message, not sameness of execution. We can see examples of strong message continuity in how McDonalds evolves its advertising slogans from one campaingn to the next. Renewal: The opposite side of the coin is also true. Strong brands must constantly renew themselves, making themselves relevant to each new generation of consumers. Efficiency: Companies that operate in a wide variety of product categories have several options for branding their product families. This is an extremely powerful means of creating leverage, either in extentions of existing brands or to enter new product categories via the parent brands estabished credibility (Aaker, Biel,1993,p.16).

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As you see until know a strong brand has many power in many ways.Why firms make a brand building strategy ? and How that power can show itself to organization with advantages or disadvantages? These are indicated like following;

1.5. ADVANTAGES OF BRANDS It increases brand loyalty and sales regularly Direct consumers perception Make easier to apply strategies of Product differentiation, brand extentiton, home brand and subbrand, and provide extra benefit and extra profit opportunities. Make easier to enter new markets so this provides gain a strong economies of scale to organizations. Contributing to the institution's image in society will help to develop positive attitudes towards the firm. Adds prestige to the firm in terms of public opinion, and other business environments. Create an important and permanent competitive advantage. prolongs the life of the company and its products With the facilitating communication between consumer and brand, give eficiency of marketing activities. Due to increases price flexibility, increase companys long term profitability. It provides protection in both legally and consumers mind to brand. Constitute the most important capital element of the business (zgl, 2001, p.130).

1.5.1. Advantages of Brand In Globally The advantages associated with global branding can be cited as economies of scale, economies of scope, customer recognition, uniform worldwide image, power and scope leverage with retailers, potential for extensions, and much better international legal

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and trademark protection The most significant reason behind global branding is the desire of firms to achieve economies of scale. Economies of scale can be achieved on the production side by decreased average unit costs, and in marketing and advertising by aligning spending behind a limited number of brands, only having to produce one ad for each medium, as opposed to many. Other than economies of scale, economies of scope can be achieved through global brands. Economies arise from the joint use of production facilities, equipment, cash, investments, relationships with stakeholders, and brand names across countries and markets. Customer recognition, tied directly to brand equity concept is also very important for marketers. A global brand profile communicates credibility to consumers, an indication of manufacturers expertise and acceptance. A strong consistent image across multiple countries can be a valuable asset that increases brand value, equity, power, and scope. This customer recognition leads to consumer inclination to buy these brands, which leverages the power of manufacturers against retailers. Manufacturers that expand beyond their national borders are powerful against retailers who want to have approximately the same mix of merchandise that consumers ask for. Finally, global brands and their brand equity provide a solid platform for manufacturers from which to make brand and line extensions (Eren-Erdomu,2005,p.43).

1.6. DISADVANTAGES OF BRAND Despite all benefits of building brand, because it requires in terms of including long-term activities, an intensive knowledge, creativity and insight it is a difficult task and have risks. In practice twenty-seven of the ten brands have failed accepted by a real that carries the risk of brand building obvious. On the one hand that risk covers because of can not operating the process as suppose to be can not be able to build a strong brand, or on the other hand, can be about partial loss or completely loss of a strong brand because of making mistakes during the applications. But another way to gain permanent success in the competitive process is also a fact (zgl, 2001, p. 130-131).

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1.6.1. Disadvantages of Brand In Globally The disadvantages associated with global branding are insufficient local responsiveness, demotivation of country managers, management difficulties, and consumer activism directed at global brands (Eren-Erdomu, 2005, p.44). Even though global brands provide economies of scale, they may not always meet local tastes, what makes them unlikely to be bought no matter how low their cost is. Consumer behavior in terms of consumer needs, wants, and usage patterns are fundamentally different with respect to many product categories. Therefore, most global companies pursue a global and a local strategy at the same time. For example, Coca Cola, as one of the leading global brand develops brands for specific country markets along with Coca Cola to meet local tastes (Vrontis, Sharp, 2003, p.3). Additionally, consumers differ in terms of their attitudes and opinions concerning marketing activity, such as general attitudes toward advertising, price sensitivity, promotion responsiveness, and sponsorship support. Demotivation of the country managers is a second important problem. Country managers become demotivated by centrally receiving most of the direction from the headquarters and in time start to show resistance or lack of follow through. This might leverage the problems associated in local markets. Finally, global branding requires extensive control and coordination of the local branches, which is not an easy process. However, later developments in technology and availability of global media opportunities have facilitated the control process. Differences in infrastructure of the countries, marketing institutions, and legal environment may equally affect the global branding process in a negative way (Eren-Erdomu, 2005, p.44). Finally, it worth mentioning the disadvantages for global brands associated with anti-American, anti-globalization movements, terrorist attacks, and consumer activism. Increasingly, buildings and staff of powerful, global brands have become targets of antiAmerican, anti-globalization movements since they are viewed as the metaphors of a global economic system mainly dominated by the US talked about the pay and conditions of developing countries workers that work for big MNCs with global brands such as Nike, Shell, Wal-Mart, Microsoft, Mc Donalds. There are also antiglobal challenges to the

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global brands and firms because of their abuse of especially the developing countries and customers. The worlds customers are believed to be at a disadvantage of being served by the same few global corporations, the same fast-food restaurants, hotel chains, and clothing chains. The global monoculture, as a result of this process, is believed to be debasing the cultures of the developing countries. The intellectual property rights and uniform pricing of global brands reduce the poor countries access to knowledge in genetics, health, agriculture, education, and information technology. There is also the obesity epidemic because of fast-food eating, and genetically modified food danger. Finally, there is the environmental pollution problem especially because of the continuous relocation of manufacturing facilities from richer to poorer countries to take advantage of laxer environmental regulation and law enforcement there. All of these events are creating antiglobalization critics. Hence, the consumer activism turned its face from the governments to the owners of these multinationals. Bombing and terrorist attacks are posing danger not only to the staff, buildings and equipment, but also to the brand image of the global brands. Some MNCs such as Unilever, therefore do not identify their corporate brand to the public and use a variety of subsidiary names so that consumer activist groups do not charge them with too many brands and too many products. (Eren-Erdomu, 2005, p.45)

I.7. IMPORTANCE AND NECESSITY OF BRANDS Brands are everywhere! It is estimated that the average American is exposed to 2100-2400 different brands every day. Why is branding so pravalent? With increased technological capabilities enabling competitos to market extremely similar goods and services, a brand is often a products most important distinguishing characteristic and may be the only part of the product a competitor can not copy (Kinnear, Bernhardt, Krentler, 1995, p.293). Building a brand just means communicating your message to them more effectively so they immediately associate your business with their requirements. Brands can

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help increase turnover by encouraging customer loyalty and are particularly useful if you are in a fast-moving sector. If your business's environment changes rapidly, a brand provides reassurance to customers and encourages their loyalty (Green Communications, 2006, p.2). One of the truths of modern business is that there is almost nothing that your competitors can't duplicate in a matter of weeks or months. If you have a great idea, you can be certain that somebody will copy it before long. And not only will they follow your lead, but they may also be able to do a better job or sell the product or service at a lower price. The question then becomes, "What competitive edge do I have to offer that cannot be copied by anyone else?" The answer? Your brand. Creating a strong brand identity will build mind share one of the strongest competitive advantages imaginable. As a result, customers will think of your business first when they think of your product category. For example, when you think of tissues, more likely than not, you think of the Kleenex brand. And when you're looking for tape to wrap a present, Scotch is the brand that springs to mind. Likewise, when your child wants a hamburger, he will often say he wants to go to McDonald's. The reason behind these strong brand-product associations is that these companies have built rock solid brand identities. That value is often called brand equity, or the worth of the brand. Brand equity, unlike other abstract marketing notions, can be quantified. For instance, if you owned the Marlboro Company and wanted to sell it, you would begin to value the firm by looking at the assets tied to the Marlboro brand. You would then identify the cost of the factories, patents, trucks, machines and staff." They are worth a small fraction of what you can sell that brand for," says Kosgrove. "The value of that brand is huge compared to those actual physical assets." The importance and value of branding becomes apparent when an entrepreneur wants to sell his or her company or take it to Wall Street for a public offering or other

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infusion of capital. It is often the brand that a business owner has to sell in such cases
(http://www.va-interactive.com/inbusiness/editorial/sales/ibt/branding.html, 15.04.2011).

With the dawn, during the mid 1990s of the Age of Intellectual Capital, came the realization that the real wealth in the modern enterprise is located in the intangible assets of that enterprise and not in the traditional (tangible) assets such as real estate, plant, equipment, inventory, cash, and the like. To understand the importance of these intangible assets, we need only look at the market capitalization of many of todays most successful corporations, or at the prices paid well beyond conventional assets in recent mergers and acquisitions (Dvrovin, Moore,2001,p.2). Consider Microsoft. In 2000, with a market capitalization of over $423 billion, Microsoft reported revenues of only $23 billion! If we check its balance sheet, and add its stated conventional assets of $52 billion to its annual revenues, we are still left with $348 billion worth of market cap of unspecified value? What accounts for this $348 billion? Experts agree this represents Microsofts intangible assets or Intellectual Capital. These days, on average, the intangible assets in many successful organizations are worth more than their traditional assets plus annual revenues. A simple index of all the elements of Intellectual Capital, is the Brand. The Brand has become the distillation, as Brand Equity, of most intangible assets and the Intellectual Capital wealth that an enterprise has created over time. Considering this, we can see why the Brand has moved to the center of corporate strategy. Increasingly, it is becoming one of the most valuable assets in the enterprise. Furthermore, it is a primary strategic asset as regards both competitive strategy and sustainable competitive advantage (Dvrovin, Moore,2001,p.2). As we realize this largely unrecognized role of the Brand, our paradigm shifts, and the Brand, which we thought was, at best, the concern of the VP of Marketing, now understood as Brand Equity, becomes the ongoing concern of the CEO and the entire executive team. If the Brand is the central Intellectual Capital asset, then a Brand Strategy is essential to managing that asset effectively. In the absence of such a unique position, we

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are not either leveraging our Brand Equities into new wealth or commanding an orchestrated, sustainable, competitive advantage upon which to build reliable long-term success. Consider that your Brand may be your most valuable corporate asset, and the asset you can most uniquely and powerfully leverage into a sustainable competitive advantage (Dvrovin, Moore,2001, p.2).

Figure 1: Source: Dvrovin, Moore,2001,p.2

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1.8. BENEFITS OF BRAND The concept of brand offers several benefits both businesses and customers including the functional and emotional dimensions. These benefits that brand offers to customers, businesses raises added value (Gezer, 2006, p.12,13). A brand more than a set of attributes. Customers are not buying attributes; they are buying benefits. Attributes need to be translated into functional and/or emotional benefits. The attribute durable could translate into the functional benefit, I wont have to buy a new car every few years. The attribute expensive might translate into the emotional benefit, The car helps me feel important and admired The attribute well built might translate into the functional and emotional benefit, I am safe in case of an accident. (Kotler,2008,p.443). A brand signals to the customer the source of the product, and protects both the customer and the producer from competitors who would attepmt to provide products that appear to be identical (Aaker, 1991, p.7). If we examine benefits of brand that requires time, large capital, and intensice effort to creation in three groups. These groups are organizsations, consumrs and community (Karacan, 2006, p.18).

1.8.1. Benefits of Brand for Consumers Heavy competitive conditions, changing consumer features push manufacturers to create and have a strong brand. Creating a strong brand loyalty and protect existing customers are business problem and due to main problem of marketing communications. Branded products give the customers confidence and thus as a result buying familiar product helps to spend less time on their purchases. If they are presented as a brand, consumers dont deal continuously with re-evaluation process, because they have an

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appreciation about branded products. Branded products are used by consumers in reinforcing their personality characteristics, having to be accepted in society or in order to obtain a feature which is not seen in use. Besides brand gives consumers a reputable identity with its value (Karacan,2006,p.18).

1.8.2. Benefits of Brand for Businesses The longer continue the existence of product in the market has been the at that time business to get the chance to lift and place in consumer's memory. A such as strong brand provides a platform for the company's new products, it also increases brand strength and resilience against the competitive attacks (Karacan, 2006, p.19). Benefits of creating brands in terms of business are as follows: Making price increases with taking advantage of the brand power, A higher profit margin, Keep consumers away from other brands, Reflect a positive image of the brand to other products, This company has a respected and recognized brands make a strong in the financial position, Increases customer loyalty, Facilitate solves any crisis during the crisis. The biggest benefit of brand provides companies with differentiating the goods and services that it promised something different to consumers from they see everyday (Karacan, 2006, p.19). The brand has a complex identity and there are many points of contact between the consumer and the brand. Because the brand equals the company, all stakeholders must perceive the brand (company) in the same fashion. The company can no longer present one

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image to the media and another to stockholders or consumers. Communications from the firm must be integrated throughout all of their operations. Communication is not, however, unidirectional. It flows from the consumer to the firm as well as from the firm to the consumer so that a dialog is established between the two (McEnally, Chernatony, 1999, p.2)

1.8.3. Benefits of Brand for Society Businesses understand best way to creating a successful brand passed to meet consumer needs, each passing day they take care to improving marketing strategies. Growing with each passing day marketing activities of enterprises, in which their intense competitive environment, competitors who do not want to stay behind all the businesses, activities to develop and create a challenge for continuous innovation. Gradually with the increase of the quality of the products, the market share of all enterprises that may lead to an increase in the welfare of society. This improvement in marketing activities, leads to the development of society and now entering into foreign markets to fight with more powerful competitiors. Strong brands are an extremely important factors can create to increase awareness of the country in foreign markets, therefore the development of society and the development of the country. Last ring of this growing development progress which started consumers shows itself through community development ( Karacan, 2006, p.20).

1.9. EFFECTS OF BRAND ON CONSUMER PYSCHOLOGY The relationship between brand and consumer can be seen as a kind deed or treaty. The latest ans most profitable strategies are those that strengthen the relationship of the brand with consumers, and then use this as the basis to drive the business forward and build

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brand value. Consumer insight plays a vital role here (Temporal, 2002, p.7). In this sense, the brand is very important that the loaded value. Consumers offer trust and their loyalty according to brand will act in certain ways and provide benefits with stable product performance, pricing, promotion, and distribution programs and activities of a secret agreement. Consumers are buying brands because they provide advantages and benefits as long as they are satisfied with the extent and the consumption of the product will continue to buy it (Kahraman, 2007, p.17). The brand is very important for consumers to interact with and are regarded as being close. Brands, a considerable effect on consumer decision-making process and provides a guarantee that consumers would prefer products. Brands is seen as an indicator of status and lifestyle as well as to meet consumers' needs (Deneli, 2009, p.96). For consumers brand is a source of confidence combining the quality and values in a manner consistent. A brand is a combination of objective and subjective characteristics of product or service. Brand is more than a symbol or logo (Erci,Yaprakl, Can, Ylmaz,2009,p.13). Brands represent consumers perceptions and feelings about a product and its performance_everything that the product or service means to consumer. In the final analysis, brands exist in the minds of consumers. Thus, the real value of a strong brand is its power to capture consumer preference and loyalty (Kotler,Armstrong,2006,p.249). Consumer choice brand and products that reflects personality, character, values (Erci, Yaprakl, Can, Ylmaz, 2009, p.13). Implementation of brand strategy usually focuses on creating (or enhancing ) visibility, brand assocations, and/or deep customer relationships. A brand such as Intel is given credit for leadership, success, quality, and even excitement and energy, mostly because of its visibility (Aaker, Joachimsthaler, 2000, p.262). By examinig consumers attitudes and behaviors. In recent years it has gained importance to determine brand product and service in which situation and feelings, when and how they perceived. Consumers buy the brand, goods and service that desire to get

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maximum benefit. Therefore; evaluates brand and goods according to their perception and maintains purchases in that way. Consumer perception, emotions, such as performance quality may be in form of a symbolic image (Erci,Yaprakl,Can,Ylmaz,2009,p.13). Brand creates motivation effect on human purchase behavior in positive or negative way. For customer towards brand or sales point. Can be used the following statement: A consumer was motivationed to remain satisfaid with a brand or dissatisfied for another brand. Research on this subject suggests, consumers are not satisfied with 90% moving away from that goods, brand or sale point in unresponsive manner. Motivation is kind of accumulation. In this regard it can be said rewarded behavior is repeated. In this case, if making an appropriate estimate for brand, it can be re-purchase. For these reasons, marketing managers need to make by a positive motivation to achieve to make a kind of creation of positive brand image (Bikin, 2004, p.85). Visibility have several components, including recognition (Have you heard of this brand?), unaided recall (What brands do you know?), and top-of-mind status (What is the first brand that comes to your mind?) in the customers buying process and brand attitude structure. The relative importance of each will depend on competitive context (Aaker, Joachimsthaler, 2000, p.263). The really strong brands, such as Harley-Davidson and Saturn, have gone a step beyond achieving visibility and differentiation to develop deep relationships with a customer group_that is, the brand becomes a meaningful part of the customers life and/or self-concept. When a deep relationship occurs, the functional, emotional and/or selfexpensive benefit will have a relatively high intensity. The customer will be highly loyal, and he or she will be likely to speak to others about the brand, discussing merits and defending shortcomings (Aaker, Joachimsthaler, 2000, p.264). From customer points of wiev, brand make easier to purchase. Considering that consumers shopping where there is no brands, due to can not evaluate truly that have purchased they can not be sure about goods. When they can chose from branded products,

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easier to be sure product quality and purchasing the right product. Brands facilitate customer selection process (Kahraman, 2007, p.16). There are important functions of brands for customers. Brands defines source of manufacturer and allow customers to assign responsibility for manufacturer or distributor. Most importantly, brands have special meaning the consumers. Consumers get past experiences with product and acquire informations about brands thanks to marketing program in years. They learn which brand satisfied the needs and which does not satisfy. As a result, brand provides practicality and simplicity in product decision (Kahraman, 2007, p.16). Another way, brands occur expectations in consumer minds. Customers have variety expectations from certain brands. If these expectations are met, a regular recipient of the brand will come to the state. A survey of consumers found a brand they are looking for the following features (Karacan, 2006, p.16-17): high quality and reliability, consistent performance, brand familiarity, obtainability and compliance, price-value relationship, compliance with consumer personality, to solve the problem of consumer, customer service, advertising.

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1.10. BUILDING BRAND Brand building is much more than the responsibility of the marketing department or even of the CEO, although both functions must participate actively in championing and protecting the brand from within for the effort to succeed. Building and supporting a great brand is everyones job from the CEO on down (Bedbury, Fenichell, 2002, p.XIII). Branding poses challenging decisions to the marketer. Until know we discuss almost everything about the brand and as we can understand building and managing brand is hard and complex if we mention steps of building brand these are; brand positioning, brand name selection, brand sponsorship, and brand development (Kotler, Armstrong, 2006, p.250). It has long been believed that the way to build brands was to follow the F.R.E.D. model (Familiarity, Relevance, Esteem, and Differentiation)Most important part of the F.R.E.D. concept was to make consumers familiar with a brands product and service offering. It was successful in time of primary marketing activity. In sharp contrast, we now live in era characterized by an overabundance of choices (Knapp, 2000, p.10). In todays global marketplace, companies with successful brands understand what business they are in. They know that first and foremost, they are in the service business. Meeting customer service expectations will be the defining factor in distinguishing their brand from competitorsin the eyes and minds of customers. Instead of F.R.E.D. , the brand-building mindset should be D.R.E.A.M.Differentiation should be the first step if a brand is to cut through the clutter in the marketplace and occupy a distinctive position in a target audiences mind. After orderly comes relevance, esteem, awarenes, Mnds eye. Our experience with clients reveals that when an organization has significantly differentiated its brands products and services, public relations and other third-party endorsements can be powerfull tools for building genuine brands (Knapp, 2000, p.13-14).

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According to Knapp, If you build it, they will come has always been a powerful concept. Our belief is that if you create the right blueprint for a brand, its easier to achieve the desired brand perception, and that more customers will come to that genuine brand. Enduring brands can give business more leverage than other asset, serving as an emotional shortcut between a company and its customers. A differentiated, ownable brand image can build an emotional and rational bridge from customers to a company, a product , or a service (Knapp, 2000, p.102). Markets are often characterized by extensive new product activity and the pace of innovation is accelerating. For example, 1521 new consumer packaged goods (CPG) brands were introduced to the United States in 2004, double the number of brands introduced in 1997. Manufacturers use new brands to drive growth in otherwise stable environments, as innovation is often envisioned as pivotal to the success of firms. However the performance of new brands varies markedly across their roll-outs. In CPG markets, only 20% of new brands earn more than $7.5 million in first year sales, and less than 1% enjoy revenues in excess of $100 million (Information Resources Incorporated (IRI), 2005). Though essential to firms overall performance, few new brands reach the status of an established brand; a majority eventually fails. The IRI survey shows that failure rates have reached 55% (Ataman, Mela, Heerde, 2007, p.1)

1.10.1. Points To Track While Building Brands According to Aaker; building strong brands need and focus some steps these are; 1.Brand identity. Having an identity for each brand. Consider the perspectives of the brand-as-person, brand-as-symbol, as well as the brand-as-product. We should remember that an image is how you are perceived, and identity is how you aspire to be perveived.

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2.Value proposition. Know the value proposition for each brand that has a driver role. Consider emotional and self-expressive benefits as well as functional benefits. 3.Brand position. For each brand, have a brand position that will provide clear guidance to those implementing a communication program.. 4.Execution. Executing the communication program so that it not only is target with the identity and position but achieves briliance and durability. 5.Consitency over time. Having as a goal a consistent identity, position, and execution over time. Maintain symbols, imagery, and metaphors that work. 6.Brand System. Making sure the brands in portfolio are consistent and synergistic. Know their roles. Having silver bullets to help support brand identities and positions. 7.Brand Leverage. Extending brands and developing co-branding programs only if the brand identity will be both used and reinforced. Identifiying range brands and for each, develop an identity and specify how that identity will be different in disparate product contents. 8.Tracking Brand Equity. Track Brand Equity over time, including awareness, perceived quality, brand loyalty, and especially brand assocations. Noing areas where brand identity and position are not reflected in the brand image. 9. Brand Responsibility. Having someone in charge of the brand who will create the identity and position and coordinate the execution over organizations units, media and markets. 10. Invest in Brands. Continuing investing in brands even when the financial goals are not being met (Aaker, 1996, 356-357).

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1.11. CHALLENGES AND NEGLECTS IN BRANDING The nature of brand creation and development issue brings with it many difficulties. This describes why businesses can not create brands, how they are unwilling or fail in this regard (zgl, 2001, p.131). Aaker ranked brand building and development challenges as follows ; Toward that end eight different factors that make it difficult to build brands will be discussed. The first, pressure to compete on price directly affects the motivation to build brands. Second reason; proliferation competition reduces the positioning options available and makes implementation less effective. The third and fourth reasons, the flagmentation in media and markets and the involvement of multiple brands and products, describe the context of building brands today, a context that involves a groving level of complexity. The remain reasons reflect internal pressures that inhibit brand building. The fifth reason, the temptation to change a sound brand strategy is particularly indious because it is the management equivalent of shooting yourself in the foot. The sixth and seventh reasons, the organizational bias against innovation and the pressure to invest elsewhere, are special problems facing strong brands. They can be caused by arrogance but are more often caused by complaceny coupled with pride and/or greed. The final reason is the pressure for shortterm results that pervades organizations. The irony is that many of the formidable problems facing brand builders today are caused by intenal forces ar biases that are under the control of the organization (Aaker, 1996, p.27). All these difficulties present by Aaker, present lowers the efficiecy of the brands market. Therefore, a company which decide to build a brand should be structured to overcome all these difficulties mentioned above (zgl,2001,p.131).

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Despite the often obvious value of a brand, there are signs that the building brand process is eroding, loyalty levels are falling and price is becoming more salient. If we indicate underemphasises on brand building; Managers cannot identify with confidence the brand associations and the strength of those associations. Knowledge of levels of brand awareness is lacking.There is no feel for whether a recognition problem exists among any segment. There is no systmatic, reliable, sensitive and valid measure of customer satisfaction and loyalty There is no person in the firm who is really charged with protecting tha brand equity. The measures of performance associated with a brand and its managers quarterly and yearly. There are no long-term objectives that are meaningful. There is no mechanism to measure and evaluate the impact of elements of marketing program upon the brand. Sales promotions for example, are selected without determining their association and considering thair impact upon the brand. There is no long term strategy for the brand. The following questions about the brand environmnt five or ten years into the future are unanswered, and may have not been addressed: What associations should the brand have?, In what product classes should the brand be competing?, What mental image should the brand stimulate in the future? (Aaker, 1991. P.8-9) are

During the chapter that is indicated all aspects of brand, faced with a notion in many times. That is Brand Equity. To be a brand firstly we should generate brand equity in consumerminds and in financial position because of this, this notion which is important part of building brand process, I will examine it in second chapter.

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CHAPTER TWO

BRAND EQUITY

2. 1. DEFINITION OF BRAND EQUITY As you see during the first part building a brand is so large and complex process. Until now I tried to give you information generally from a broad perspective and in this part I will explain brand equity which generate a large part of being strong brands. Today, for businesses having creative and income generating ideas have became much more important than have the physical (material) assests. Only tangible assets, securities, and cash values can be displayed as the company's assets on classic business balance sheets but today large part of the market value of business is intangible assests such as human resources, intellectual capital, customer relationships and brand value. Common example for this subject used is Microsoft Software Company. Microsofts market value is 430 billion dolars. Wheras the value of its tangible assets of 10 billion dollars (Bikin, 2004, p.40).

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As you see, intangible assets like brand equity of firm generate more than its tangible assets. This example is best way to tell and show brand values worth on firms. Brand Equity is one of the important intangible asset that generate market value of businesses and provide valuation with high prices (Gezer,2006,P.33). Equity Makes a Brand Strong Brand Equity is a set of assets (and liabilities) linked to a brands name and symbol that adds to (or substracts from) the value provided by a product or service tp a firm and/or that firms customers.(Aaker,1996,p.7) Marketing Science Institute defined brand equity as The set of associations and behaviors on part of the brands customers, channel members, and parent corporation that permits the brand to earn greater volume or greater margins than it could without the brand name and that gives the brand a strong, sustainable, and differentiated advantage over competitors (Keller 2003, p. 43). The mechanism that underlies (equity) is agreed to be a latent value in the mind of customers that is exhibited through its impact on behavior. Positive equity results in behavior that benefits the brand through purchase frequeny, brand loyalty, price insensivity, willingness to recommend and more.(Reynods&Phillips, 2010, p.19) Brand equity is also the financial value of a brand that is derived from exclusive, positive, and prominent meaning in the minds of customers. Brand equity brings premium pricing, greater bargaining power with channels of distribution, reduced selling costs, barriers to potential entrants, and synergistic advantages to a brand in question. The concept was defined in several ways by several different authors and institutions. Some of the most favorite ones were quoted by Keller (Keller, 2003, p.43). Finally, Raj Srivastava defined it as Brand equity subsumes brand strength and brand value. Brand strength is the set of associations and behaviors on the part of a brands

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customers, channel members, and parent corporation that permits the brand to enjoy sustainable and differentiated competitive advantages. Brand value is the financial outcome of managements ability to leverage brand strength via tactical and strategic actions in providing superior current and future profits and lowered risks (Eren-Erdomu, 2005, p.16). For assets or liabilities to underlie brand equity they must be linked to the name and/or symbol of the brand. If the brands name or symbol should change, some or all of the assets or liabilities could be affected an deven lost although some might be shifted to a new name and symbol. The assets and liabilities on which brand equity is based will differ from context to context (Aaker,1991,p.15). Brand equity is regarded as a very important concept in business practice as well as in academic research because marketers can gain competitive advantage through successful brands (Lassar, Mittal, Sharma, 1995, p.11). So the study of brand equity is increasingly popular as some researchers have concluded that brands are one of the most valuable assets that a company has. High brand equity levels are known to lead to higher consumer preferences and purchase intentions as well as higher stock returns. Besides, high brand equity brings an opportunity for successful extensions, resilience against competitors promotional pressures, and creation of barriers to competitive entry (Eren-Erdomu, 2005, p.16). Clearly, various researches in brand equity through the years result in all different kinds of dimension of brand equity that can be linked to a brand. However, the common denominator in all models is the utilization of one or more dimension of the Aaker model. Therefore, the consumer-based brand equity is an asset of four dimensions that are brand awareness, brand associations, perceived quality and brand loyalty (Fayrene, Lee, 2011, p.35). Thanks to all definitions of brand equity, we can say that these five dimensions; 1- Brand equity refers to consumer perceptions rather than any objective indicators,
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2- Brand equity refers to a global value associated with a brand, 3- The global value associated with the brand stems from the brand name and not only from physical aspects of the brand , 4- Brand equity is not absolute but relative to competition, 5- Brand equity positively influences financial performance (Lassar,Mittal,Sharma, 1995, p.12). Like the brand itself, brand equity can be considered both from the company perspective, and from the customers perspective.

Financial-oriented brand equity Customer-based oriented brand equity

2.1.1. Financial-Based Brand Equity With 1980s because of increases mergers and acquisitions need to protect brand value, brand equity measurements studies emerging as an entity emerged. To determine the monetary value of the brand correctly, many valuation method has been developed by academics, financiers, and consulting firms. But companies have brands have different characteristics and located in different sectors, thats are prevented to give reliable results because of the difficulty of measuring the effects created by the brand as a intangible assets. There are many different approaches to the financial-oriented brand value. Several of them are as follows;

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Point of view of financial market brands, such as factories and equipment are often active in the purchased and sold. Therefore, the brand's financial value brought or can bring to the financial market price.

According to another overriding financial aspects of brand recognition, Brand value is todays value that all input can provide used in future. To another approach; it is possible to say that intangible securities make up the basis of total value of business (Deneli, 2009, p.61).

Financial value-based techniques extract the brand equity value from the value of the firms other assets . Simon and Sullivan (1993) define brand equity as the incremental cash flows which accrue to branded products over and above the cash flows which would result from the sale of unbranded products. These authors estimate a firms brand equity by deriving financial market estimates from brand-related profits. Taking the financial market value of a firm as a base, they extract the firms brand equity from the value of the firms other tangible and intangible assets, which results in an estimate based on the firms future cash flows. Along the same line of thought, Doyle argues that brand equity is reflected by the ability of brands to create value by accelerating growth and enhanc ing prices. In other words, brands function as an important driver of cash flow (Guzman, p.13-14).

2.1.2. Customer-Based Brand Equity Customer-based brand equity has been defined as the differential effect of brand knowledge on consumer response to the marketing of the brand. Thus brand equity is conceptualized from the perspective of the individual consumer and customer-based brand equity occurs when the consumer is familiar with the brand and hold some favorable, strong, and unique brand associations in the memory (Lassar, Mittal, Sharma, 1995, p.11).

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Getting operationable of brand equity in marketing is divided into two groups. The first of these includes consumer perceptions of awareness, brand associations, perceived quality. Second one is brand loyalty includes with consumer behavior and desire to pay the price differences. Brand equity definitions varies in literature. According to Erdem and Swait ; customer-based brand equity is brand equity as a reputation indication of position of product. For Varquez and others, definition of customer-oriented brand equity is sum of the functional and symbolic benefits derived by as a result of using and consumption of brand by consumers (Deneli, 2009, 62). Keller and Aaker define brand equity comprehensively and they examined by separating brand value into four component . These are ; Brand Awareness Perceived Quality Brand Loyalty Brand Assocation

Figure 2 :(Source : Francisco GUZMAN, A Brand Building Literature Review, p.14)

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2. 2. IMPORTANCE OF BRAND EQUITY In a study conducted stated in 1991 by the Marketing Science Institute, marketing is the most important issue facing the management of brand equity. Especially with increased competition, Changing market conditions, even more conscious consumers and consumers dont want to spent too much effort to shop has led to emergence this importance (Karacan, 2006, p.23). Brand equity is the financial value of a brand that is derived from exclusive, positive, and prominent meaning in the minds of customers. Brand equity brings premium pricing, greater bargaining power with channels of distribution, reduced selling costs, barriers to potential entrants, and synergistic advantages to a brand in question (ErenErdomu, 2005, p.16). Brand equity is a strategic bridge from past to future for marketers. Consumers about the brand they know, remember, they feel a kind of marketing investment. As a result of this information, it is possible to guide the brand's future strategy (Erdem, Uslu, 2010, p.167-168). Like the brand itself, brand equity can be considered both from the company perspective, and from the customers perspective. From companys perspective, it can be considered as the value of the marketing mix given the brand name attached versus the value of the same mix without the brand name. From customers point of view it is the difference in customers response to marketing mix activities of a branded product versus customers response to the same mix without a brand. Brand name is used as a predictive cue in this respect (Eren-Erdomu, 2005, p.16).

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2.2.1. Importance of Brand From Brand Equitys Point Of View Today way the achieving consumers and having sustainable competitive advantage pass from first respect for customer and being a pioneer creating satisfy in the market by understanding and right analyze their needs. Provision of additional benefits offered to the market with product or service in the mind of the consumer brands urge to make positive connotations. Brand equity is added value that brand name carieers product beyond the functional value. Because of positive impressions that value makes product and value of organization in the market more important than actives of enterprice (Erdem, Uslu, 2010, p.167). Attempt to explain the relationship between customers and brands, has led to formation of the concept of brand equity in marketing literature. The concept of brand equity has taken place in both financial and marketin literature and emphasized the importance that giving importance of brand management in long-term (Karacan, 2006, p.23).

2.2.2. Importance Of Brand Equity In Building Brand Process In essence, brand development efforts are creating brand-specific equity. Mentioned here the equity is a concept that increases market value of the brand or businesses, created by give customer value brand by firm and ultimately express a value for the company. If customer show a more positive or more negative reaction against the brand than indicates a reaction which doesnt know the brand name or a brand-untitled of the same product category, in this case can be reported positive or negative brand equity. (zgl, 2001, p.7).

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Brand equity in consumer minds is the result of public perception formed by all the impressions your brand makes in its marketplace.If consumer impressions are positive and consistent, your brand equity/brand value is likely to be positive and consistent, too. If impressions are erratic or even negative, brand equity/brand value is likely to waver and sink on the news (Chiaravalle, Schenck, 2007, p.254). Your brands equity as an asset is called brand equity. Brand equity is determined by a complex process that weighs your brands current and future monetary value, based only on consumer perceptions but also on the ability of your brand to deliver economic advantages to its owner in the future (Chiaravalle, Schenck, 2007, p.254).

2.3. BUILDING BRAND EQUITY Globalization accelerated in the 1990s and today's intense competitive environment for businesses to obtain a strong position against competitors in the market just is not enough to create a brand, brand equity must also increase continuously. Because highly brand equity provides an important competitive advantage to businesses (Gezer, 2006, p.92).

2.3.1. A Conceptual Framework of Brand Equity Inspired by Kellers (1993, 2003), Aakers (1991, 1996), Kapferers (1997), de Chernatonys (2001) and Yoo, Donthu and Lees (2000) works, a conceptual framework is proposed. The framework summarizes the strategic brand management and brand equity creation for multiple parties. The framework starts with the creation of the brand identity in the firm. The brand identity is created in the firm by deciding on brand positioning, core values of the brand, functional and emotional benefits, personality, and origin of the brand. Then brand identity is transferred to the customers through planning and implementing

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brand marketing programs. Brand marketing includes brand elements, conventional and nonconventional methods of marketing management. Brand name, logo, brand character, four Ps of marketing, and online marketing are designed in order to create high brand awareness and form a positive image of the brand in the minds of the customers, retailers, and distributors. This way, brand equity is created. Brand equity, in return, brings value to the firm, customers, retailers and distributors. This value is more of financial value and outcome of the marketing activities of the brand when the firm is concerned. It is predictive cues, a guarantee of quality, trust, optimization of time and choice, and confirmation of selfimage when the customers are concerned. Finally, it is increased consumer interest, patronage, and loyalty when the retailers and distributors are concerned (Eren-Erdomu, 2005, p.33).

2. 4. ELEMENTS OF BRAND EQUITY David A. Aaker and Erich Joachhimsthaler addressed from the perspective of consumers and business strategy management approach supported their brand equity consists of four elements indicated. Brand Awareness, Perceived Quality, Brand Loyalty and Brand Association. The authors must be maintained to adhere to brand name or symbol to establish the basis of these elements of brand equity. Brand equity elements are at the same time in interaction each one is helping to creation, development and strengthen theirself; activities that configures the brand influence elements of brand equity in positive way and elements is occur due to marketing activities (Gezer, 2006, p.42).

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2.4.1. Brand Awareness Awareness refers to the strength of a brands presence in the consumers mind. If consumers minds were full of the mental billboards each one depicting a single brandthen a bans awareness would be reflected in the size of its billboard. Awareness is measured according to the different ways in which consumers remember a brand, ranging from recognition (have you been exposed to this brand before?) to recall (What brands of this product class can you recall?) to top of mind (the first brand recalled) to dominant (the only brand recalled). As psychologist and economists have long understood, however, recognition and recall are signals of much more than just remembering a brand (Aaker, 1996, p.10). Awareness, the brandss place in comparison with competitors in the consumers mind. Brand awareness, brand identity is considered as a sign, logo, such as elements, help to achieve success of companies brand awareness. Brand Awareness, first conscious step for brand and its existence entirely in memory of consumer. Awareness is the first come to mind of consumers memory in product purchases and it aims to be constantly on the agenda. Brand awareness consist a combination of two basic concepts as a brand recognition and brand recall (Erci, Yaprakl, Can, Ylmaz, 2009, p.16). Recognition reflects familiarity gained from past exposure. Recognition does not necessarily involve remembering where the brand was encountered before, why it differs from other brands, or even what the brands product class is. It is simply remembering that there was a past exposure to the brand. Research in psychology has shown that recognition alone can result in more positive feelings toward nearly anything, it be music, people, words, or brands (Aaker, 1996, p.10). Another important concept in the brand awareness is brand recall. This concept, when given a hint of the brand to the consumer, the consumer can be defined as the ability to use prior knowledge. Also, when the consumer hear the brand name it is very important what occurs in consumer mind (Erci, Yaprakl, Can, Ylmaz, 2009, p.16). Brand recall

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involves both depth and breadth. Depth is the likelihood that a brand element will come to mind and the ease with which it does so. The breadth, on the other hand, is the range of purchase and usage situations in which the brand element comes to mind. Brand recognition is the ability of consumers to confirm prior exposure to the brand when given the brand as a cue, and brand recall, or ability of consumers to retrieve the brand from memory when given the product category, the needs fulfilled by the category, or a purchase, usage situation as a cue. Marketers can create brand awareness by increasing consumer experiences with the brand by seeing it, hearing it, and thinking about it. Anything can be done to visually and verbally reinforce the brand name and other relevant brand elements such as its logo, symbol, or jingle through advertising, promotion, sponsorship, event marketing, publicity, and public relations (Eren-Erdomu, 2005, p. 17). Because consumers are bombarded every day by more and more marketing messages, the challenge of establishing recall and recognition _and doing so economically_ is considerable. Two factors are likely to be increasingly important as firms struggle with this challenge. First, given the recourses required to create healthy awareness levels, a broad sales base is usually a enormous asset. It is expensive and often impossible to support brands with relatively small units sales and a life measured in years instead of decades. For this reason, corporate brands such as General Electric, Hewlett-Packard, Honda, or Siemens have an advantage when it comes to building presence and awareness , because multiple businesses support the brand name. Second, in the coming decades, the firms that become skilled at operating outside the normal media channels_ by using event promotions, sponsorships, publicity, sampling, and other attention getting approaches_ will be the most successful in building brand awareness (Aaker, 1996, p.16). Getting customer to recognize and recall your brand thus can considerably enhance brand equity. Brand awareness is the basic step in the communication task since it is wasteful to communicate a brands promises unless a brand name is established in consumers mind with which to associate what is communicated. Raising brand awareness increases the

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familiarity, liking, and the likelihood that the brand will be the consideration set for purchasing (Aaker, 1991, p.56). Brand awareness, positive impact on sales resulting from a variety of ways the two can be versatile. The first of these effects, awareness has a positive effect on perceived quality and preferences. When consumers heard positive things about the company, they perceive this situation in a form of firm has a large number of customer and running of the company effective. It is expected that a company with a known name will give a better service than foes. Another positive effect of awareness on sales is customers tends to purchase brands that a first-come to mind or they already knew as a result of desire to shorten costs and decision making process. Such an approach is much more active in the consumer decisionmaking, such as toothpaste products that is generally accepted (Karacan, 2006, p.38). Brand awareness and recognition is very important to increase the likelihood of brand recall and therefore facilitates the inclusion of set of evaluation. If a brand can not be recall and can not provide awareness it will not included in set of evaluation and not taken into account for the purchase. Increasing brand awareness become a set member so elected and increase the likelihood of purchase. Brands with first comes mind and strong brand image have a strategic competitive advantage when they are included in evaluation set (Gezer, 2006, p.63).

2.4.2. Perceived Quality Perceived quality is as comprehensive as the supremacy of the judiciary of a product or when substitutes is considered is defined as comprehensive as a rule of jurisdiction of the consumer. Parasuraman, Zeithaml, Berry in the perceived quality is defined as the assessment on the consumer about added superior value on product capacity. (Karacan, 2006, p.50-51) Perceived quality is a dimension that is recognized by Aaker. It
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can be defined as the customers perception of the overall quality or superiority of a product or service with respect to its intended purpose, relative to alternatives (Aaker 1991, p. 85). Perceived quality is a brand association that is elevated to the status of a brand asset for several reasons; Among all brand associations, only perceived quality has been shown to drive financial performance. Perceived quality is often a major (if not the principles) strategic thrust of a business. Perceived quality is linked to and often drives other aspects of how a brand is perceived (Aaker, 1996, p.17). There is a pervasive thirst to show that investments in brand equity will pay off. Although linking financial performance to any intangible asset (whether it is people, information technology, or brand equity) is difficult (Aaker, 1996, p.17). There is no question that perceived quality is essential, as evidenced by the tremendous attention given to the Baldrige Aards for quality management and the J.D. Power and Associates Satisfaction Research. Regardless of how one chooses to rate perceived quality, ultimately it is only as good as the consumer perceives it (Knapp, 1994, p.14). Perceived quality is the customers judgment about a products overall excellence or superiority that is different from objective quality. Objective quality refers to the technical, measurable and verifiable nature of products/services, processes and quality controls. High objective quality does not necessarily contribute to brand equity. Since its impossible for consumers to make complete and correct judgments of the objective quality, they use quality attributes that they associate with quality. Perceived quality is hence formed to judge the overall quality of a product/service. Boulding and other researchers

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(1993) argued that quality is directly influenced by perceptions. Consumers use the quality attributes to infer quality of an unfamiliar product. It is therefore important to understand the relevant quality attributes are with regard to brand equity (Fayrene Y.L., Lee, 2011, p.38). Besides among alternatives in accordance wih the objectives, it is can be defined consumer perception about brands advantages, or general quality. As the definition suggests, the perceived quality is associated with the consumer and value judgments emerging as a factor in determining what is important. The values given by consumer differ due to their personality, needs, and preferences. Starting from here, should be noted that perceived quality is a different concept from being satisfied. Because, to the low expectations that can satisfy the consumer (Erci, Yaprakl, Can, Ylmaz, 2009, p.16). Zeithaml (1988) and Steenkamp (1997) classify the concept of perceived quality in two groups of factors that are intrinsic attributes and extrinsic attributes. The intrinsic attributes are related to the physical aspects of a product (e.g. colour, flavour, form and appearance); on the other hand, extrinsic attributes are related to the product, but not in the physical part of this one (e.g. brand name, stamp of quality, price, store, packaging and production information. Its difficult to generalize attributes as they are specific to product categories (Fayrene Y.L., Lee, 2011, p.38). It is the perception of customers. Therefore, judgments about what is important to customers are involved. Perceived quality has two dimensions; product quality and service quality. Product quality involves the tangible aspects of quality, such as performance, features, conformance with specifications, reliability, durability, serviceability, and the fit and finish (appearance and feel of quality). Service quality, on the other hand, involves tangibles appearance and feel of quality), reliability (dependability and accurateness), competence (knowledge and skill), and empathy (caring, individualized attention). To enhance perceived quality, a firm should have commitment to quality, a quality culture, obtain accurate and current customer input, measurement and standards, allow employee

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initiative, and raise customer expectations above those delivered. Price also affects perceived quality, especially when there are more differences in perceived quality across product classes. The value of the perceived quality to a firm can be expressed in creating a reason-to-buy, differentiation, a price premium, motivation to channel members, and brand extensions (Eren-Erdomu, 2005, p.17,18).

2.4.3. Brand Loyalty Customers consistent preference for one brand over all others in its product category. Over half the users in product categories such as cigarettes, mayonnaise,

toothpaste, coffee, headache remedies, photographic film, bath soap, and catsup are loyal to one brand (Lamb, Hair, McDaniel, 1998, p.299). According to traditional definition made by William T. Tucker; behavior in terms of acquisitions of brand in the past and again is regarded as an indicator of brand loyalty. To this definition,brand loyalty is selection behavior of branded goods. Then Jacob Jacoby and David B. Kyner defined loyalty as a relational phenomenon that is a subset of multidimensional structure and repeat purchase behavior (Gezer, 2006, p.55). The most often forgotten driver in building brand equity is brand loyalty. There is nothing like a satisfied customer to tell a brands story and influence others. Other proprietary assets such as patents, trademarks, and unique attributes can be very helpful as well when consumers must shift through the clutter of choices that exists in todays marketplace. Customer can be characterized by a variety of loyalty descriptions. One of the common misperceptions is that the way to build loyalty is to focus on future sales. Frequent flyer and customer loyalty programs are tools some brands utilize in an attempt to lock customer into future purchases (Knapp, 1994, p. 15-16). Brand loyalty is excluded from many conceptualizations of brand equity. There are at least two reasons, however, why it is appropriate and useful to include it. First a brands

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value to a firm is largely created by the customer loyalty it commands. Second, considering loyalty as an asset encourages and justifies loyalty-building programs which then help create and enhance brand equity (Aaker, 1996, p.21). Brand loyalty is at the core of brand equity concept according to Aaker. It is a measure of the attachment that a customer has to a brand (Aaker 1991, p. 39). If customers are indifferent to a brand, then there is little brand equity. Brand loyalty of existing customers is a strategic asset, which has a potential to provide value if properly managed. The familiar is comfortable and reassuring, whereas changing brands requires effort, especially if the decision involves substantial investment or risk. Brand loyalty directly translates into sales, reduces marketing costs, pressures channel members to hold the brand and gives it a good shelf space, attracts new customers, and gives time to respond to competitive threats. To create brand loyalty, a firm should be careful to treat the customers right, stay close to customers, measure and manage customer satisfaction, create switching costs for customers, and provide a few extra unexpected services (Eren-Erdomu, 2005, p.19). Brand loyalty is a key consideration when placing a value on a brand that is to be bought or sold, because a highly loyal customer base can be expected to generate a very predictable sales and profit stream. In fact, a brand without a loyal customer base usually is vulnerable or has value only in its potential to create loyal customers (Aaker, 1996, p.21). Further, the impact of brand loyalty on marketing costs is often substantial: It is simply much less costly to retain customers than to attract new ones. A common and expensive mistake is to seek growth by enticing new customers to the brand while neglecting existing ones. The loyalty of existing customers also represents a substantial entry barrier o competitors in part because the cost will feel the firm connecting with them individually, and the brand-customer relationship will become stronger (Aaker, 1996, p.21,25).

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For example, Beverages & More! Is a retail chain that offers a huge selection of wines, beers, liquors, and drink complements. Each customer is invited to be a member of Club Bev and is given a card that is used to track all purchases. In addition to a newsletter and a frequent-buyer program, customers receive personal notification of special purchases, products, or events that are relevant to people with their purchases profile. In addition to matching products to customers, the interaction pattern shows that the store is involved enough to care about the interests of each individual customer (Aaker, 1996, p.25).

2.4.4. Brand Associations A brand association is the most accepted aspect of brand equity. Associations represent the basis for purchase decision and for brand loyalty (Aaker 1991, p. 109). According to Keller; brand association is impressions which is connected to the memory trace of the brand, including information brand meaning for consumers. (Gezer, 2006, p.63) Brand Equity is supported in great part by the associations that consumers make with a brand. These associations might include product attributes, a celebrity spokesperson, or a particular symbol. Brand associations are driven by the brand identity _what the organization wants the brand to stand for in the customers mind (Aaker, 1996, p.25 ). Even though in some cases, especially in low involvement cases, creating brand awareness is enough to achieve brand equity, in most cases brand equity also involves creating a positive brand image, in other words, strong, favorable, and unique associations of the brand in consumers minds for Keller. Aaker uses the term brand associations instead of brand image. Kapferer distinguishes between brand image and brand identity, by saying that the former is what consumers perceive of the brand, whereas the latter is what companies create for the brand to define what it is. However, most authors avoid the term

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brand identity and only use the term brand image in their studies. Brand identity is created by the firm, and encompasses of a brands vision and aim, its uniqueness, functions, permanent nature, values, and its signs. The aim is to provide an identity to the brands so that people like them and see them as unique. Brand identity can be created by physically dressing the product differently- packaging, by speaking differently- toning in commercials, or by adding specific characteristics. Actually brand identity is the sum total, whole of what is being offered. Consumers decode this brand identity, whole of what is offered, when they receive it. Brand image is the result of this decoding, and interpretation of the brand identity from consumers eyes. Differences can occur between brand identity sent by the company, and brand image customers form as a result. If a difference occurs between brand identity and brand image, then it is a perception gap and companies try to avoid it at all costs (Eren-Erdomu, 2005, p.18). Consumer-based brand equity requires brands have positive connotations. Companies who want to create a valuable brand; must also create great, powerful and a unique brand association to this brand. With the support of the brand association that created on consumer by brand, brands attributes, benefits and identification help to have high brand equity in consumers memory (Erci, Yaprakl, Can, Ylmaz, 2009, p.16). Brand associations consist of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes and is anything linked in memory to a brand. Other researchers (Farquhar & Herr 1993, Chen, 1996, Brown & Dacin 1997, Biel 1992) identify different types of association that contribute to the brand equity. Chen (2001) categorized two types of brand associations - product associations and organizational associations (Fayrene Y.L., Lee, 2011, 36). Organizations are discovering the benefits of associating their brand with other images, icons, and especially other brands. Brand associations can be very helpful to consumers in their processing of information about a brand. Starbucks associated with Marriott, Nike with Michael Jordan, McDonalds with Disney, and Intel uses a distinctive

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audible tone to help consumers relate to their brands products and services (Knapp, 1994, p.15).

Figure 3 :Source: Aaker, David A.,(1996) Building Strong Brands

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2.5. ADVANTAGES OF BRAND EQUITY Today, in each type of industry and any size business purpose to create and increase brand equity therefore brand value in their marketing strategies. Because there is a positive relationship between brand equity and financial performance of companies. Strong brands and high brand equity reveal a value for purchases business, to investors and shareholders; lead to profits, customer loyalty and growth. Thus, businesses become most valuable brands in the industries and in the world and are sold at high prices as assets which has high financial values (Gezer, 2006, p.84). Companies with major brands have a major asset. The asset, of course, is no more than prejudice, even if it gets called goodwill, loyalty, reputation or preference. However, it is a powerful and lasting asset, and a company can make profits out of it for years, just as a film star or politician can live off a reputation for years. It is, in brand marketing terms, an equity (Arnold, 2006, p.5). High brand equity provides a number of competitive advantages: The company will enjoy reduced marketing cost because of the high level of consumer brand awareness and loyalty. The company will have more trade leverage in bargaining with distributors and retailers since customer expect them to carry the brand. The company can charge a higher price than its competitors because the brand has higher perceived quality. The company can more easily launch brand extensions since the brand name carries high credibility. The brand offers the company some defense against fierce price competition (Kotler, 2008, p.445).

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CHAPTER THREE

EVALUATION OF TURKISH BRANDS

First two chapter so far, we indicated what is brand?, why it is necessary? Whar are the brands benefits?, what is brand equity and its elements and their tasks? Teoricaly and with some famous examples. Now in this chapter I will examine Turkish brands and their place in international base in this direction. 3.1. BRAND IN TURKEY Turkeys history and culture of industrialization and commercialization is not more than 80 years. Even though it has been described as one of the biggest economies in its region, with a young and fine educated population, and well built educational, energy, and communication infrastructure, it was described for long periods as a country with political and economic instability, slow growth rate, low foreign direct investment, and high inflation. Therefore, it is not surprising to say that firms operating in Turkey are not involved in long-range planning. Firms cannot plan their operations ahead of three months since the future is quite unpredictable. As a result, all kinds of investments are done with caution. Hence, for a long time Turkish firms did not invest enough in long term market existence, brand management, and hence Turkish brands were not well diffused to the international markets (Eren-Erdomu, 2005, p.7-8).

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3. 1. 1. Turkish Brands Place In The International Area It doesnt seem at all bright in terms of Turkey about brand development. According to; latest figures provided by independent brand valuation company Brand Finance, there is only one Turkish company in the most valuable 500 global brands list. Trkiye Bankas to the ranking of the world's most valuable 500 brands ranked 493. Bankas, the brand value is $ 2.28 billion, and the market value is given $ 19.2 billion. First company of same list is Google with $ 44,2 billion brand value and $143,01 billion market value
(http://www.bloomberght.com/kuresel-piyasalar/haber/868390-dunyanin-en-degerli-markasi-google,

23.05.2011).

The study combines measurements of the presence of financial data, consumer

brand. Other companies in list is as follows;

Table1:(Source;23.05.2011
http://www.brandirectory.com/league_tables/table/global_500_2011/index.php?page=10

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The results show how Turkey take a little place in terms of brand building and development. Even if only this data will be enough to emphasize for Turkish firms to create a strong brand how much remains passive.

3.1.2. Reasons The Lack of Turkish Brands Macro sense, the reason for not having a strong and valuable brand need to look for in the past. Until 1980, import substitution businesses operating in a market, the market until this period, compared to other international white goods, automotive, packaged as extremely poor quality food brands and products are given by the old technology and because of this products demand, firms didnt make investment which will give a permanent advantage. This situation after 80s period, and in recent years with effect of European Union, modern marketing approach to match consumer expectations have increased the demand for foreign brands and foreign brands have been adopted as a high quality perception and trust by Turks. So that an extreme interest consisted about imported goods in Turkish population. During the last twenty years, the strong advantage is taken by foreign enterprises through the brand enter the Turkish market effectively in face with understood of being necessity brand development and global brands (zgl, 2001, p.132). The problems that prevent the creation of a strong brand operating can be grouped asat the level of the functional aspects of production, marketing, management, financing.

If we focus on problems in marketing area due to problems in building brand equity; Building brand and provide remembering in consumer memory with strong brand associations will be obtained with marketing activities of business. Therefore no matter how quality, it wouldnt be expected to be successful in lack of strong marketing strong.

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Product is produced in factory but consumer buys brand not product in reality. Deficiencies and problems in building and developing brand equity of Turkey can be explained as follows; First of these; intangible assets problem which arising from can not have a permanent identity. Intangible assets are one of the most important tools that gives a strong and permanent competitive advantage for brand development. Within the scope of intangible assets; its brand identity, brand association that meaning market position and defining the relationship between consumer-brand can be included. Today, brands have achieved a strong position in the world, each one has different brand identity that very clear, simple, constant, known by consumer and retailer and directing all marketing activities different from competing brands. For example; Volvo represent strength and safety, Jhonie&Walker represent freedom and wealth, BMW represent driving performance and Coca-Cola represent modern American lifestyle. This identity brands have is known by everybody and stay for a long time. All these features gain value for brand. It is clear our country has a this kind of problem. Businesses either are not aware of that or change their strategy in every marketing activity and make something against their strategy. This also create a confusion about consumer memory as a result, decrease the brand equity and brand value of this brand. Another mistake made on the intangible assets of brands in the business is that giving more importance the physical values. But these values always open to competition and can lose appeal quickly, have many imitation opportunities. So they are not be able to create strong brand in long term. Best example for this situation is competition between Telsim and Turkcell. Even they enter the market at the same time, there are net differences. Since it's appear in sector, Telsim told in its ads consistently superiors to competitors, offers a more economical and advantageous services in an aggrassive manner. Whereas Turkcell has drawn portrait more appealing to consumers emotions, all the efforts or consumers talking to each other and communicate care feelings. Also offer same services like competitors and with investments in global market become a strong brand with applying customer-based brand equity in short term (zgl, 2001, p. 134).
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Besides, when companies use price promotions unconscious and very often for short-term purposes most of times effects negatively and cause cant solve problems. this type of promotions use to increase sales figures in our country, generally are made to attract whom not using that brand and back to the old situation after the end of the period but this time observed that brands loyal users changed their attitude the brand and lead to a decrease in brand equity (zgl , 2001, p.135). Except the failure on building brand equity in building brand process, there are many reasons and mistakes about lack of Turkish brands in international areas. One of this is countrys image. Turkish brands almost doomed to their bad product for many years, even maintain this attitude in products for export, has eroded serious erosion the image of Turkish goods. Unfortunately, the irresposible attitude of enterprises have caused the perceived produced qualified products in poor quality and in country and abroad foreign brands have become more sought after. In recent years, to fix this negative image and standardization quality of product, Turquality is establised which will explain in following part.

3.1.3. Development of Turkish Brands In International Markets According to Ouz Satc, the President of Trkiye hracatlar Meclisi (Turkish Exporters Council), the acceleration of internationalization of Turkish brands coincides with the economic crises that Turkey has been facing since 2000. Throughout these crises, the domestic market shrank in demand, and companies found themselves in a situation where they had to find alternative ways and markets to survive. As a result, the crises turned Turkeys face to foreign markets, where most Turkish firms showed quite aggressive policies. At the same time, Turkish firms improved themselves in creative design as well as quality production, which are described as building blocs of becoming a brand by Sleyman Orakolu, the President of Istanbul Hazrgiyim ve Konfeksiyon hracatlar

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Birlii- HKB (Istanbul Exporters of Apparel and Confectionaries Union). After the millennium, the production, exporting, and national and international branding gained pace in Turkey. Turkish brands have succeeded especially in Western Europe, Eastern Europe, and Russia. Northern Africa and the Middle East are also viewed as promising markets for the Turkish brands in the future. However, looking at the export figures, it has been observed that Turkey does not have a big portion of the export pie of the Northern and Latin American (especially Brazil), and Asian Countries (especially China and India), which are described as the promising export markets for the future. Turkey is not yet catching up with this latest trend (Eren-Erdomu, 2005, p.8).

Under todays conditions of Turkish firms in some sectors, especially a brand is more than one option, it is a must. In fact, it is not only in terms of protection and consolidation exports to international markets; branding are needed directly in terms of protect national market that has become extention of the foreign market. Because when those countries such as Turkey, the crowd, remember the importance of the internal market (Akta, Akaolu, 2005, p.4).

Made in Turkey label became a reference point and a reason of buying especially for ready-to-wear brands. Now there are also some well-recognized international Turkish brands in the ready-to-wear sector, such as Mavi Jeans, Damat- Tween, and Colins Jeans. One can see successful international Turkish brands not only in ready-to-wear, but also in food, furniture, retailing, beverages, white goods, jewellery, ceramics, automobile and digital goods sectors. Examples of Turkeys promising brands for the world markets can be given as the Koc Group (Beko and Arcelik) and Vestel in white goods, Efes Pilsen in beverages, Ulker and Tat in food, Gilan in jewellery, Migros in retailing, Tofa and Lassa in automotive, and ilek Gen Odas in furniture that have proven successful in major foreign markets (Eren Erdomu, 2005, p.8).

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Turkey also has successful brands in sports and designer clothes. Some of the sports players who have become global Turkish brands are Emre Belzolu, Hakan kr, Okan Buruk, brahim Kutluay, Mirsad Trkcan, Mehmet Okur, and Hidayet Trkolu. Some of the global Turkish designers are Arzu Kaprol, Atl Kutolu, Dice Kayek, and Hakan Yldrm. Some Turkish writers also have global appeals. For example, Orhan Pamuks books were among the best sellers in the USA, and he was a nominated for the Nobel Prize for 2005. Areas where Turkish firms prove to be competitive, can expand and become successful in branding and international trade are recognized as textile and readyto-wear, electrical and electronical machines, automotives, machine manufacturing, computer technologies, iron-steel, food, and earthenware sectors. Denim (jean) is also specifically recognized as one of the promising areas with competitive advantages for Turkish firms. The competitive advantages in this sector are given as the washing techniques, delivery timing, and experience Turkish firms have over others in the marketplace (Eren-Erdomu, 2005, p.9). Some Turkish brands are also opening international retail chains at a fascinating rate. The retail sales points of Turkish brands in goods and services have reached 543 in 78 different countries around the world. The plans for 2005 and 2006 show that this number will increase. The firms with international retail stores are in the ready to wear, furniture, accessories, home textile, home and garden decoration, services, and paper industries. Countries with more than 10 Turkish retail shores are the USA, Cyprus, Germany, Russia, Bulgaria, Romania, Ukraine, Azerbaijan, Belgium, United Arab Emirates, France, Saudi Arabia, Jordan and Greece. These are countries which are described by the firms as countries with little competition. However, opening stores in international markets is not exactly the same as becoming international brands in these markets. It is only a step. Becoming international brands require more long range planning and investment (ErenErdomu, 2005, p.9,10).

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3.1.3.1. Turquality Still, for the time being, Turkish companies have not reached their ultimate limit in developing international, regional or global brands. Many things are waiting to be done. Krat Tzmen, current Minister of State, started a project called Turquality, with the aim of increasing familiarity and image of Turkish brands in international markets. With the partnership of D Ticaret Mstearl (Undersecretariat of the Prime Ministry for Foreign Trade), Trkiye hracatclar Meclisi (Turkish Export Council), and stanbul Tekstil ve Konfeksiyon hracat Birlikleri (Istanbul Textile and Confectionary Exporters Union), 15 brands and three designers were selected to be given the Turquality certificate, which is a globally recognized symbol of systematic quality of the whole process, design to retail sales. The aim is to enhance the trust of foreign consumers to the Turquality certificated brand in question. The government subsidizes one million US dollars for each brand if the firms agree to pay half of the costs of opening shops, promotional and research and development activities in foreign markets. For the time being, the project is at pilot testing stage. The ready-toowear sector is chosen as the pilot group. The brands and firms that were granted the certificate are 1)Abbate (Mercek Holding), 2)Atl Kutolu (Atl Kutolu), 3)Bil's (Bilsar Tekstil), 4)Colin's (Erolu Giyim Sanayi), 5)Damat-Tween (Orka Tekstil), 6)Derri (DSD Deri Sanayicileri), 7)Dice Kayek (Aye ve Ece Ege), 8)Esas (Esas Tekstil), 9)Harmanl (Harmanl Deri), 10)Hussein Chalayan (Hseyin alayan), 11)pekyol (pekyol Giyim Sanayi), 12)LTB (ak Tekstil), 13)Mithat (Mithat Giyim), 14)NetWork (Altnyldz Mensucat), 15) Polo Garage (Polo Giyim), 16)Ramsey (Ramsey Giyim), 17)Sarar (Sarar Giyim), 18) ViaVeneto (Pasha Deri)(Eren-Erdomu, 2005, p.10). Supported by the World brand development to create a branding potential road maps for each firm, separately issuing TURQUALITY, after determining the correct strategy, working with many opportunities to meet the needs of companies and offers support (Karaduman, Abac, 2010, p.4).

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Turquality is the worlds first and only state-funded branding program. Today, increasingly heavy competition and changing consumption patterns encouraging the companies build strong brands who want to take a part in international area and which is meaning greater market share. Determines the vision as to create 10 world brands in 10 years the Turquality aims to support identifying companies that have the potential to build a brand to reach in the support platform framework ( http://www.turquality.com/6.aspx)
(23.05.2011). Mission of Turquality is increase exports of our country by developing a strong

global brands and with developed turkish brands strengthen the Made in Turkey image and reputation of Turkey.

TURQUALITY 's objectives

Play a accelerator role in branding by providing financial resources to companies who have potential to become a global brand, for building global Turkish brands to assist with , operations, organization and technology consultant for development of brands and organizations. Under the program by providing training support to units in the management of companies to strengthen human resources. provide positive building and developing of Turkish image abroad with communication and advertising activities Raise awareness of the potential of the brand of Turkish brands. In order to do action provide an intelligence support with Turkish companies information. to be an incubator and catalyst for selected Turkish brands
(http://www.turquality.com/7.aspx, 23.05.2011).

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With branding, Turkish companies can position themselves strategically for the future, compete effectively with global giants and easily overcome problems arising from challenges the changes in the world politics and economy enforce. Hence, it is believed that no firm will survive the competitive environment five years from now, if they do not analyze the world. Competition is not only from the developed countries, but also from China, India, and Egypt, because of their cheap labour, and removal of the quotas in trade. With branding, Turkish firms can gain global recognition, reduce dependence on contract manufacturing, access and penetrate new markets, new and emerging industries, reduce costs, increase value, secure long-term profits and growth, survive the hard times, break parity and stand out from the crowd. In the absence of such transition and development, the scope of international involvement will only be limited to competing as contract manufacturers or marginal exporters. This transition into international or global brands is necessary if Turkey wants to reach industrial, economically developed country status (ErenErdomu, 2005, p.10).

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3. 2. BRAND EQUITY OF TURKISH BRANDS Although; Turks brands does not come to consumers mind when mention a certain sector worldwide, there are many strong and valuable Turkish brand which is active both in country and abroad. According to Turkeys Most Valuable Brands research conducted by Capital and English Brand Finance ; Turkeys most valuable brand is Trk Telekom with $1593.49 million.

MOST VALUABLE BRANDS OF TURKEY RANK 1. 2. 3. 4. 5. 6. 7. 8. 9 10. BRANDS Trk Telekom Turkcell Arelik Anadolu Efes Migros Bankas Ford Otomotiv Oyak Renault Akbank Trk Hava Yollar BRAND VALUE (million $) -1593,49 -1533,63 -1269,6 -1257,38 -1212,56 -1208,07 -998,46 -983,85 -909,52 -873,64

Table 2: Source: http://www.markatescilofisi.com/turkiyenin-en-degerli-markalari/ (23.05.2011)

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CONCLUSION

Core activities of branding has building brand equity or brand value. Ultimately every strong brand will have a certain value because of its impact on consumer. In terms of strong brands, this value could be much higher than companys total assets. Therefore company who wants to make branding firstly should focus on to build brand equity.

General accepted form of brand equity is defined as whole value attached on brand identity that created for other company or customer by product or service. Brand equity consists of four components. Awareness, image, loyalty and perceived quality. A strong brand will be obtained only through the development these four components. According to examining; brand equity emerges as a concept that specifies the results to be achieved.

When we look at in this regard, the most important part of creating a brand that the brand equity, so brands are always rated by financial assessment of their brand equity. This assessments draw attention due to not included Turkish brands. Fact that, due to Turkish brands include lately to branding which is greatest return for global trade. Both being late and wrong strategies have played a big role in this case. But still both private entrepreneurs and the government has taken important steps about branding in recent years and turning to be promote itself and aim to be a preferred brand in different sectors of international market.

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