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Encyclopedia > Brand management

The discipline of brand management was started at Procter & Gamble PLC as a result of a famous memo by Neil H. McElroy[citation needed]. In other terms: Procter & Gamble Co. ... Neil Hosler McElroy (30 October 1904 - 30 November 1972) was United States Secretary of Defense from 1957 to 1959 under President Eisenhower. ...


Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity. Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with present and future purchases of the same product. This may increase sales by making a comparison with competing products more favorable. It may also enable the manufacturer to charge more for the product. The value of the brand is determined by the amount of profit it generates for the manufacturer. This results from a combination of increased sales and increased price. Product lining is the marketing strategy of offering for sale several related products. ... A brand includes a name, logo, slogan, and/or design scheme associated with a product or service. ... It has been suggested that Brand extension be merged into this article or section. ... For the Talib Kweli album Quality (album) Quality can refer to a. ...


The annual list of the world’s most valuable brands, published by Interbrand and Business Week, indicates that the market value of companies often consists largely of brand equity. Research by McKinsey & Company, a global consulting firm, in 2000 suggested that strong, well-leveraged brands produce higher returns to shareholders than weaker, narrower brands. Taken together, this means that brands seriously impact shareholder value, which ultimately makes branding a CEO responsibility. Interbrand, a division of Omnicom, is the leading branding company in the world. ... BusinessWeek is a business magazine published by McGraw-Hill. ... McKinsey & Company is a privately owned management consulting firm that focuses on solving issues of concern to senior management in large corporations and organizations. ... Chief Executive Officer (CEO) is the job of having the ultimate executive responsibility or authority within an organization or corporation. ...

Contents

Principles

A good brand name should:

  • be legally protectable
  • be easy to pronounce
  • be easy to remember
  • be easy to recognize
  • attract attention
  • suggest product benefits (e.g.: Easy-Off) or suggest usage
  • suggest the company or product image
  • distinguish the product's positioning relative to the competition.

Reckitt Benckiser plc is one of the worlds leading manufacturers of cleaning products and a member of the FTSE 100 Index of the largest companies traded on the London Stock Exchange. ... A corporate image refers to how a corporation is perceived. ... A products position is how potential buyers see the product. ...

Types of brands

A premium brand typically costs more than other products in the category. An economy brand is a brand targeted to a high price elasticity market segment. A fighting brand is a brand created specifically to counter a competitive threat. When a company's name is used as a product brand name, this is referred to as corporate branding. When one brand name is used for several related products, this is referred to as family branding. When all a company's products are given different brand names, this is referred to as individual branding. When a company uses the brand equity associated with an existing brand name to introduce a new product or product line, this is referred to as brand leveraging. When large retailers buy products in bulk from manufacturers and put their own brand name on them, this is called private branding, store brand, or private label. Private brands can be differentiated from manufacturers' brands (also referred to as national brands). When two or more brands work together to market their products, this is referred to as co-branding. When a company sells the rights to use a brand name to another company for use on a non-competing product or in another geographical area, this is referred to as brand licensing. An employment brand is created when a company wants to build awareness with potential candidates. In many cases, such as Google, this brand is an integrated extension of their consumer. Target market may be defined as a market which an organisation sets its views on, either because it is witnessing an increasing demand for the product produced by the organisation, either because it represents a blue ocean for the organisation to exploit before its competitors get there, so as to... In economics and business studies, the price elasticity of demand (PED) is an elasticity that measures the nature and degree of the relationship between changes in quantity demanded of a good and changes in its price. ... A Market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. ... Corporate branding refers to the practice of using a companys name as a product brand name. ... Family branding is a marketing strategy that involves selling several related products under one brand name. ... Individual branding is the marketing strategy of giving each product in a product portfolio its own unique brand name. ... It has been suggested that Brand extension be merged into this article or section. ... Product lining is the marketing strategy of offering for sale several related products. ... A drawing of a self-service store Retailing consists of the sale of goods/merchandise for personal or household consumption either from a fixed location such as a department store or kiosk, or away from a fixed location and related subordinated services (Definition of the WTO (last page). ... Private branding is when a large distribution channel member (usually a retailer), buys from a manufacturer in bulk and puts its own name on the product. ... This article does not cite any references or sources. ... Swedish grocery store where private label products (under the brands Hemköp and Eldorado, Axfood) are placed along with other brands such as Knorr (Unilever) and Blå band (Campbell Soup). ... This article is about the corporation. ...


Techniques

Brand rationalization refers to reducing the number of brands marketed by a company. Some companies tend to create more brands and product variations within a brand than economies of scale would indicate. Sometimes, they will create a specific service or product brand for each market that they target. In the case of product branding, they may do this to gain retail shelf space (and reduce the amount of shelf space allocated to competing brands). A company may decide to rationalize their portfolio of brands from time to time to gain production and marketing efficiencies. They may also decide to rationalize a brand portfolio as part of corporate restructuring. The increase in output from Q to Q2 causes a decrease in the average cost of each unit from C to C1. ...


A recurring challenge for brand managers is to build a consistent brand while keeping its message fresh and relevant. An older brand identity may be misaligned to a redefined target market, a restated corporate vision statement, revisited mission statement or values of a company. Brand identities may also lose resonance with their target market through demographic evolution. Repositioning a brand (sometimes called rebranding), may cost some past brand equity, and can confuse the target market, but ideally, a brand can be repositioned while retaining existing brand equity for leverage. This page meets Wikipedias criteria for speedy deletion. ... Look up mission statement in Wiktionary, the free dictionary. ... A products position is how potential buyers see the product. ... This article or section does not cite its references or sources. ...


Brand Orientation is a deliberate approach to working with brands, both internally and externally. The most important driving force behind this increased interest in strong brands is the accelerating pace of globalisation. This has resulted in an ever-tougher competitive situation on many markets. A product’s superiority is in itself no longer sufficient to guarantee its success. The fast pace of technological development and the increased speed with which imitations turn up on the market have dramatically shortened product lifecycles. The consequence is that product-related competitive advantages soon risk being transformed into competitive prerequisites. For this reason, increasing numbers of companies are looking for other, more enduring, competitive tools – such as brands. Brand Orientation refers to "the degree to which the organisation values brands and its practices are oriented towards building brand capabilities” (Bridson & Evans, 2004) The product lifecycle goes though many phases and involves many professional disciplines and requires many skills, tools and processes. ... In marketing and strategic management, sustainable competitive advantage is an advantage that one firm has relative to competing firms. ...


Problems

There are several problems associated with setting objectives for a brand or product category. A brand includes a name, logo, slogan, and/or design scheme associated with a product or service. ...

  • Many brand managers limit themselves to setting financial objectives. They ignore strategic objectives because they feel this is the responsibility of senior management.
  • Most product level or brand managers limit themselves to setting short term objectives because their compensation packages are designed to reward short term behaviour. Short term objectives should be seen as milestones towards long term objectives.
  • Often product level managers are not given enough information to construct strategic objectives.
  • It is sometimes difficult to translate corporate level objectives into brand or product level objectives. Changes in shareholders' equity are easy for a company to calculate. It is not so easy to calculate the change in shareholders' equity that can be attributed to a product or category. More complex metrics like changes in the net present value of shareholders' equity are even more difficult for the product manager to assess.
  • In a diversified company, the objectives of some brands may conflict with those of other brands. Or worse, corporate objectives may conflict with the specific needs of your brand. This is particularly true in regard to the trade-off between stability and riskiness. Corporate objectives must be broad enough that brands with high risk products are not constrained by objectives set with cash cows in mind (see B.C.G. Analysis). The brand manager also needs to know senior management's harvesting strategy. If corporate management intends to invest in brand equity and take a long term position in the market (i.e. penetration and growth strategy), it would be a mistake for the product manager to use short term cash flow objectives (ie. price skimming strategy). Only when these conflicts and tradeoffs are made explicit, is it possible for all levels of objectives to fit together in a coherent and mutually supportive manner.
  • Many brand managers set objectives that optimize the performance of their unit rather than optimize overall corporate performance. This is particularly true where compensation is based primarily on unit performance. Managers tend to ignore potential synergies and inter-unit joint processes.

This article or section is in need of attention from an expert on the subject. ... A Tradeoff usually refers to losing one quality or aspect of something in return for gaining another quality or aspect. ... B.C.G. analysis is a technique used in brand marketing, product management, and strategic management to help a company decide what products to add to its product portfolio. ... Penetration pricing is the pricing technique of setting a relatively low initial entry price, a price that is often lower than the eventual market price. ... Price Skimming Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time. ... Synergy (from the Greek synergos, συνεργός meaning working together, circa 1660) refers to the phenomenon in which two or more discrete influences or agents acting together create an effect greater than that predicted by knowing only the separate effects of the individual agents. ...

See also

Predictive analytics encompasses a variety of techniques from statistics and data mining that process current and historical data in order to make “predictions” about future events. ... A brand community is a community on the basis of attachment to a product or marque. ... In marketing, brand management is the application of a range of efforts seeking to increase a product/services perceived value to the customer and thereby increase brand franchise and brand equity. ... Brand implementation refers to the physical application of brand identity across visual identity carriers. ... Customer Engagement (CE) refers to the engagement of customers with one another, with a company or a brand. ... The Emory Brand Institute is a non-profit innovation research group based in Atlanta, Georgia. ... Emory University is a private university located in the metropolitan area of the city of Atlanta and in western unincorporated DeKalb County, Georgia, United States. ...

References

  • Brands Trademarks and Advertising, Rodney D. Ryder, Lexis Nexis Butterworths.
  • Brand Warfare, David D'alessandro, McGraw Hill, New York, 2001, ISBN 0-07-136293-2
  • Philip Kotler and Waldemar Pfoertsch, B2B Brand Management, Springer, 2006.
  • Bridson, K., and Evans, J., 2004, ‘The secret to a fashion advantage is brand orientation’, International Journal of Retail and Distribution Management, 32(8): 403-11

External Links

  • Articles on Brand Management
  • Article on Positioning Your Brand Strategy

  Results from FactBites:
 
Brand - Wikipedia, the free encyclopedia (2634 words)
Brand recognition and other reactions are created by the accumulation of experiences with the specific product or service, both directly relating to its use, and through the influence of advertising, design, and media commentary.
The brand, and "branding" and brand equity have become increasingly important components of culture and the economy, now being described as "cultural accessories and personal philosophies".
Brand equity measures the total value of the brand to the brand owner, and reflects the extent of brand franchise.
  More results at FactBites »

 
 

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