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 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 can result from a combination of
increased sales and increased price, and/or reduced COGS (cost of goods sold), and/or
reduced or more efficient marketing investment. All of these enhancements may improve
the profitability of a brand, and thus, "Brand Managers" often carry line-management
accountability for a brand's P&L profitability, in contrast to marketing staff manager
roles, which are allocated budgets from above, to manage and execute. In this regard,
Brand Management is often viewed in organizations as a broader and more strategic role
than Marketing alone.

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.

The discipline of brand management was started at Procter & Gamble PLC as a result of
a famous memo by Neil H. McElroy.[1]

Contents
[hide]

• 1 Principles
o 1.1 Types of brands
o 1.2 Brand Architecture
• 2 Techniques
• 3 Challenges
• 4 See also

• 5 References

[edit] Principles
A good brand name should:

• be protected (or at least protectable) under trademark law

• be easy to pronounce
 • be easy to remember
• be easy to recognize
• be easy to translate into all languages in the markets where the brand will be used
• attract attention
• suggest product benefits (e.g.: Easy-Off) or suggest usage (note the tradeoff with
strong trademark protection)
• suggest the company or product image
• distinguish the product's positioning relative to the competition.
• be attractive
• stand out among a group of other brands

[edit] Types of brands

A number of different types of brands are recognized. A "premium brand" typically costs
more than other products in the same 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, white labelling, private label or own brand (UK).
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 customer.

[edit] Brand Architecture

The different brands owned by a company are related to each other via brand
architecture. In product brand architecture, the company supports many different product
brands each having its own name and style of expression but the company itself remains
invisible to consumers. Procter & Gamble, considered by many to have created product
branding, is a choice example with its many unrelated consumer brands such as Tide,
Pampers, Ivory and Pantene. With endorsed brand architecture, a mother brand is tied to
product brands, such as The Courtyard Hotels (product brand name) by Marriott (mother
brand name). Endorsed brands benefit from the standing of their mother brand and thus
save a company some marketing expense by virtue promoting all the linked brands
whenever the mother brand is advertised. In the third model only the mother brand is
used and all products carry this name and all advertising speaks with the same voice. A
good example of this brand architecture, most often known as corporate branding, is the
UK-based conglomerate Virgin. Virgin brands all its businesses with its name (e.g.,
Virgin Megastore, Virgin Atlantic, Virgin Brides) and uses one style and logo to support
each of them.

[edit] Techniques
Companies sometimes want to reduce the number of brands that they market. This
process is known as "Brand rationalization." 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, this may be 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
efficiency, or to rationalize a brand portfolio as part of corporate restructuring.

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 brand equity, and can confuse the target market, but ideally, a brand can be
repositioned while retaining existing brand equity for leverage.

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 globalization. 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 organization values brands and its
practices are oriented towards building brand capabilities” (Bridson & Evans, 2004).

This article may contain original research or unverified claims. Please improve the
article by adding references. See the talk page for details. (October 2008)

[edit] Challenges
There are several challenges associated with setting objectives for a brand or product
category.
 • Brand managers sometimes limit themselves to setting financial and market
performance objectives. They may not question strategic objectives if 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 behavior. 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.
• Brand managers sometimes 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.
• Brands are sometimes criticized within social media web sites and this must be
monitored and managed (if possible)[2]

[edit] See also

• Brand orientation
• Predictive analytics
• Brand community
• Brand engagement
• Brand implementation
• Customer engagement
• Emory Brand Institute at Emory University
• Visual merchandising
[edit] References
1. ^ Aaker, David A.; Erich Joachimsthaler (2000). Brand Leadership. New York: The Free
Press. pp. pp. 1-6. ISBN 0-684-83924-5.
2. ^ Social Media Management Guide., Online Social Networking Sites Explained in Plain
English, OnlineBrandManager.org

• 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
• Aaker, D. A. (2004) Brand Portfolio Strategy, New York: Free Press.
• Olins W. (2003) On Brand. London: Thames & Hudson

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