Brand Management
Product Branding
The
application of
marketing methods in respect of a particular
product, range of products, or a specific brand is commonly referred to
as
Brand management. Its role is to increase the product's perceived value
in the
eyes of the customer, and at the same time increase the strength of the
brand
and its brand equity, which refers to the benefits associated with a
product
that has a particular brand name as compared with the benefits that the
same
product would achieve if it did not have that brand name.
A
brand is regarded as
being synonymous with a product whose
quality, effectiveness and desirability is perceived by the customer to
be
maintained no matter how often the product is purchased. The purpose is
to
increase sales by increasing the profile and desirability of the
product in
relation to competitive products. An associated benefit is that the
manufacturer may feel able to increase the price of the product.
A
brand’s value can be
assessed in a number of ways, but a
particularly pertinent method is the level of profits that it can
generate for
the manufacturer. Factors that can increase the value of a brand
include
increasing sales volume, increasing unit price, reducing the product’s
cost of
sales, and more efficient marketing.
The
control and
management of the marketing effort applied
to the brand, and overall responsibility for its profitability, is a
succinct
definition of the role of the Brand Manager. He is seen as the driving
force
behind the brand and holds a pivotal role in the overall marketing
strategy.
For this reason, Brand Management is invariably seen as a broader and
more
strategic role than that of the Marketing function alone.
It
is an interesting fact
that, in respect of many of the
world’s leading brands, from the viewpoint of the annual survey
published by
the prestigious Interbrand and Business Week magazines, the market
capitalisation of the companies to which they are associated often
consists
largely of the value of the brand equity.
It
was the company
Procter and Gamble who first introduced
the concept of brand management.
It
has been suggested
that brands with a strong marketing
base generate the highest returns for shareholders. With all these
factors
taken into account, it is apparent that, from research conducted by the
global
consulting firm McKinsey & Company, brands seriously impact
shareholder
value. This means that, in the final analysis, matters relating to the
brand
strategy of a company’s products should not be left solely in the hands
of the
brand manager, but should also involve the participation of the most
senior
officer in that company.
Brand
Characteristics
A
good brand name should
possess the following
characteristics:
Able
to be protected
under trademark law
Easy to pronounce
Easy to remember
Easy to recognize
Easy to translate into
all languages in the markets where
the brand will be used Attract attention
Suggest product benefits
Suggest the company or
product image by:
Distinguishing the
product's positioning, which is the
relative competitive comparison the product occupies in a given market
as perceived
by the target market.
Being attractive and
desirable by the consumer
Stand out amongst a group
of other brands
This
is by no means an
exhaustive list, but certainly
epitomises the essential criteria.
Branding
– How To Succeed
Peter
Radford writes
Articles with Websites on a wide range of subjects. Branding
Articles cover What Is A Brand, Brand
Characteristics, Brand Manager, What Makes A Good Brand.
His Website
contains
over 70 Branding Articles
View
his Website
at: branding-how-to-succeed.com
This Article may be republished
so long as the
Resource Box and entire contents remain in tact.
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