CuriousOwl

What comes to mind when we say “Brand”?

Some big companies, Apple, Google, Ford, Mercedes, and the likes have carved a niche for themselves. 

These brands now give a particular image for a person owning the products of these companies.

They are not merely a name or a symbol, but they are beyond that. 

A feeling, an emotion, a personal connection is associated with them.

What is Brand Management?

So, brand management is a technique used by companies to elevate the image in the minds of consumers. To enhance the perceived value.

When we talk about a brand, that means an established, reputed and respected company. However, maintaining or growing the image of the company brand management is all about.

Today we are spoiled by choice. How one company differentiates itself from the competition is where brand management helps.

Definition of Brand

The American Marketing Association defines a brand as “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 a brand is a trademark”.

According to David Ogilvy, who is known as the father of advertising, a brand is “The intangible sum of a product’s attributes: its name, packaging, and price, its history, its reputation, and the way it’s advertised.”

Brand Management and its importance

John Stewart, the former CEO of Quaker Oats, once said, “If this business were split up, I would give you the land and bricks and mortar, and I would keep the brands and trademarks, and I would fare better than you.” 

In this time and age, perception changes pretty fast, hence there is a need to manage a brand in terms of creation, maintenance, and elevation.

We see a lot of advertisements for the same or similar products. But we are inclined towards a known brand.

A product and a brand have a very strong association.

For example, we associate Rolls Royce with luxury cars, however, they also manufacture excellent jet engines for aircraft. 

Brand management types

There are broadly two types, tangible and intangible

Tangible

The product itself. Accompanied with price, placement, etc. belong to this category.

Intangible

Brand equity, band value, perception, image are intangibles associated with a brand.

Terms associated with Brand management

Brand equity

It is a measure of a consumer’s attachment to the brand. Often we buy a product just by looking at the brand. The thought process is, if it is an “ABC” brand, it will be good. This is the value a brand generates, which will directly affect the bottom line positively.

Brand Loyalty

This is the tendency to buy a product or a service repeatedly. A consumer is skeptical about other brands. This feeling comes from the perception that the brand I am using presently fulfills my criteria, has the desired feature, and justifies the price.

Brand awareness

As the name suggests, the extent to which a consumer is familiar with the product.

This further can be subdivided into two categories:

Brand recognition – When a consumer can recognise the brand.

Brand Recall – Where a consumer can recall the brand, he/she has seen or noticed previously.

Brand Identity

A company makes mobile phones, but then there are many companies. So, to differentiate itself from the competition company wants an identity so unique that consumers can only think of this company regarding the services or products the company provides.

The best example is an iPhone from Apple. The company’s identity is in the product’s uniqueness. Something which is not available elsewhere.

Brand Association

Someone is associated with the XYZ brand. What signal does it give? It means that the consumer believes in the product and the company, the experience or the feeling is satisfying.

A person buying BMW over Mercedes and another person buying Mercedes over BMW.

Brand Promise

A brand’s promise says “I have delivered what I have promised”. The deviation, if any or if the brand cannot keep up the promise, will hamper the brand adversely.

Strategies of Brand Management

A company needs to manage its brand and in order to do so, certain strategies can be followed.

Line Extension

This means extending the current product line. A cookie manufacturer has a chocolate-flavored cookie, they should extend the line with vanilla-flavored or coffee-flavored ones. It is like giving consumers a lot more choices than before.

Brand Extension

Google started off with a search engine now extended its line and also has a very popular mail service(Gmail) , Cloud storage(Drive), Artificial Intelligence, software suites.

Multi Brand

Several brands of the one-parent company. Volkswagen AG owns brands like Audi, Bentley, Ducati. Every single brand is huge.

New Brand

When a company feels saturation and competition from new and innovative products, then it launches a new brand to directly compete with those new products.

Brand Management Process

Positioning and value

For a company, it is important to decide what should be the positioning of the product or services they are offering. Also, it is critical to understand what sort of value the product is creating in the minds of consumers. This is because, unless the perceived value is higher than the expectation, the consumers will not be able to connect with them.

Planning

Proper planning is imperative to keeping the product’s lifecycle in mind. The pricing plays an important role. Customer service helps alleviate the dissonance if there is one. Moreover, the packaging matters a lot because it is nowadays considered 5th P of marketing, (besides Product, Price, Place, Promotion).

Measure performance

We have created a brand but without measuring where we stand, we cannot better it. With so many competitors, it is easy to be lost. It is a data-driven process.

Grow and sustain

When a brand is created, there is a need to manage it. With an aim to be a leader.

Step by step, with each passing day, a milestone checks where we are than yesterday. If not, go to the drawing board and re-plan the things.

Components of brand management

Giving brand an identity

The first and foremost thing is creating an identity in terms of a name and a logo and a tagline, which reflects the mission and vision of the company.

Famously, Nike’s Swoosh logo (like a tick mark) and an impactful tagline “Just do it”. Encouraging sports persons non-sports persons alike.

Observe trends

Market changes with a blink of an eye. An organization can’t be relaxed with one strategy which works right now. The trend which was there yesterday will not be there tomorrow.

One should be able to fathom the trend which is picking up in the market and leave behind those which are not.

Social media is a substantial source to see what’s in demand today and the things which consumers are rejecting.

If the trend is set for gluten-free food products, a company should also adopt and change its product line accordingly.

Inputs from cross-functional teams.

Front line staffs are your eyes and ears. Inputs from them carry an immense weight-age as they are in constant touch with consumers. The first-hand response from consumers should be the topmost priority while evaluating the performance of the product or services.

Similarly, accounts or finance departments can tell whether the spending is on track. The Sales team can provide precious info – if my products are well received by the consumers.

Also, the production department is responsible for meeting the market demands in terms of quantity.

Every department has an important role to play, provide inputs and have items in their list to be actioned. 

Competitor analysis

This is super important. Why will a customer buy from me when my competitor is providing better value? How the competitor is achieving this? What numbers my competitors are touching in terms of sales? Any breakthrough they have got?.

What new markets can I explore or what kind of product I can make so that I will have the first mover’s advantage?

Without a proper analysis, we would not know how well are we progressing. Competition is healthy, analysis is healthier.

Maintain and enhance

The brand once set and became popular, the primary aim now is to maintain the image. Deficiency in service is unpardonable.

Although it is very natural that we cannot satisfy every soul on this planet yet, our endeavor should be the same.

User dissatisfaction should be treated appropriately and make amends as much as workable.

The objective is to increase the trust so that brand image will be enhanced and, in turn, set the ball rolling in becoming a market leader.

Budget

Wish we had all the money at our disposal. But this is just wishful thinking. On the ground level, there is always a crunch. So, judicious spending on the requirements is imperative. 

Less spending but more value. If my competitor is spending $100 for a product and my spending is $80 for the same, I already have the edge, competitive advantage.

Embracing opportunity

Rain or shine, there is always an opportunity to be better. By looking at the product at hand, ongoing trends, prevalent pricing, always try to create more value for the customers.

Not every company can be Apple, but providing cheaper devices, better customer care, serving in remote areas will not only enhance the image but will generate more revenue, after all, the aim of any business is to make profits.

Listening to customers

The voice of customers (VOC) is crucial to a business. If we are not listening to our customers, we are on a slippery slope. This is important while developing a new product and even critical in post-sale care.

Good customer support will catapult the image of the organization. This says that a company cares for its customers.

Mind you, it is not a onetime job, but every single time should be projected like that. Employees should be trained to exceed expectations. 

Conclusion

As the saying goes, Rome was not built in a day. Building, maintaining, and sustaining a brand is difficult. But losing it is way easier than we think. 

It is a collective effort from every department and every employee.

Brand management is tough, yes agreed, but it is one of the most satisfying job for the person managing it and ultimately the organization itself.