Brand management is a set of marketing techniques that apply to a specific brand, product or service in order to increase the importance in the perception of end consumers and target audience. From the definition it is clear that this is a complex and diverse process, since there are a huge number of different products and services in a market economy.
Goals
Brand management aims to increase the value of a brand. In this case, value is the benefit that the producer receives. It should be noted that concepts such as brand management, marketing and PR are two different things. In the first case, managers prepare financial reports and bookkeeping, since the effectiveness of their work is quantifiable. In the second case, the budget for marketing tasks is allocated at the very end of the business plan, for the actual “balances”. The same principle often applies to PR. Accordingly, unlike PR and marketing, brand management plays an important strategic role in the work of the entire organization.
History and Development
The term "brand management" appeared in the 1930s in a memo from Nect McAlroy, a Procter and Gamble advertising department employee. He proposed the introduction of a new position called “brand-man” and formulated job responsibilities. Neil McElroy successfully brought all his ideas to life, then he headed the company itself, and later the Department of Defense of the United States of America.
Ratings
Today, this concept has firmly entered the structure of a market economy and corporate culture. Many consulting firms and magazines often publish their various ratings of the most valuable and best brands. These classifications are designed to reflect the most objective value on the market of the represented companies, which is largely based on the brand value. As shown by numerous studies, large and strong brands can always provide greater comfort and significantly greater profitability for their shareholders than highly specialized and weak ones.
Brand classification
Brand management at the present stage is not even a tool, but a whole science. That is why a certain typification of brands is needed. As a result, many brand management models have emerged . Consider them:
- Premium class - these are brands whose product price is significantly higher than the average price for a particular product category.
- The economy class is aimed at the broadest masses of buyers, has a large price range.
- "Fighter" is a brand that is able to be in demand taking into account the minimum advertising and marketing costs. It is created if necessary to ensure competition with private cheap brands.
- Private brands (aka “white brands”) are retail brands.
- Family - products of the same name similar in category (for example, toothpastes and brushes).
- An extension of brand marketing is the use of a well-known brand to bring some new products or a whole line of goods and services to a wide market.
- License - a document confirming the act of transferring rights to another manufacturer to use an existing brand.
- Joint branding - combining the marketing efforts of several manufacturers.
- Corporate - the name of the company is the brand itself.
- Employer brand - creating the image of a company in the vision of potential customers, colleagues and employees.
- Strategic brand management - the most global and long-term methods of planning marketing steps, usually are in service with large holdings and corporations.
Architecture
There are three main types of company brand structure. They are also known as brand management techniques.
- Several brands are connected to a system called architecture. Each individual brand has its own name, style and image, however, the foundation company itself is invisible to the average person. An example is Procter and Gamble, the founder of this concept. She spawned many strong and large brands, such as Pampers, Pantene, Ivory, Tide.
- Affiliate brands are developed and promoted in the general context of the mother. This approach significantly saves the marketing budget. An example is MTS and Stream.
- In the last method of architecture, only the mother brand is used, and all other products have its name in the name and use similar styles and images. A vivid example of this trend is Virgin with its subsidiary brands such as Virgin Atlantic, Virgin Megastore, Virgin Brides. They have the same logo and style, they are supported by each other and are similarly advertised.
The importance of name selection and promotion technology
Quality brand management should be based on the name of the company. It should be easily pronounced, attracting attention, harmonious, memorable. The name should contain a reference to any positive qualities of the service or product, reflect the image and mission of the company, positively position the product, and stand out among many other products. As common technologies use rationalization, orientation and rebranding.
Rationalization is a reduction in the number of brands, as their number may eventually exceed the allowable marketing power of the company. Rebranding is a brand change, but preserving some basic input data. This technology is very risky, but allows in the future to keep old customers and attract new ones. Orientation - creation of symbolic value of goods. This means that the product characteristics themselves are no longer the decisive and basic arguments of buyers - the brand itself has come to the fore. Product life cycles have become very short in today's free and competitive market. And the appearance of cheaper analogue products and substitutes jeopardizes the existence of popular products. Hence the need to focus not so much on the characteristics of the product as on marketing and the brand. That is, the focus is on the end user.