What is brand management?

Brand management is an umbrella term that describes marketing strategies that can help maintain, improve, and enhance awareness of a brand’s or its products’ broader reputation and value. A solid brand management strategy works to foster and nurture closer relationships with its target audience . Effective strategies can increase product or service prices and create loyal customers using positive brand images, associations, and awareness. These techniques typically centre around building brand recognition, brand equity, and brand loyalty, which require a comprehensive understanding of the product or brand, target market, and the organization’s overall vision.

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How brand management works

Brands have a dynamic influence on a company’s management, customer engagement, and market competition. A solid brand presence in a specific industry empowers companies to stand out from competitors and creates brand affinity with their products and services. An established brand must continually manage its image to maintain its status. Effective brand management measures brand equity, drives brand-supporting initiatives, accommodates and identifies new products, increases brand awareness, and strategically positions the brand in the market.

Brand management examples

It takes patience and time to establish a brand, and creativity and innovation to maintain its notoriety. Some examples of established brands in their respective industries are:

• McDonald’s
• Coca-Cola
• IBM
• CNN
• Microsoft
• Lego
• Ford
• Starbucks
• Procter & Gamble

You likely wouldn’t associate clowns with a popular fast-food chain, but when people see one in particular, Ronald McDonald, most will associate it with the McDonald’s restaurant. The same goes for an iconic advertisement from Coca-Cola in the early 70s—the jingle “It’s the Real Thing” on a TV commercial featuring people from different cultures and ethnicities. While these are extreme examples of brands that found their way to connect with their target audiences, they continue to use this connection to continuously grow their brand.

Brands can represent more than one product. For example, Ford and Chrysler have many models of cars and trucks under their brands. Another example is Procter & Gamble, which has many popular brand-name products like Crest toothpaste, Charmin bathroom tissue, and Dawn dishwashing liquid.

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Brand management elements

Brand management has three elements that can play a direct role in developing a brand:

Brand recognition

Without the ability to invoke positive emotions from consumers, a brand may virtually disappear. Brand recognition is often the first thing that brand management produces, hoping for a favourable response from consumers. New products introduced to the market rely on positive brand recognition, while more established brands worry more about allocating resources to strengthen or maintain their existing position.

Brand equity

Brand equity is the value of a product’s image. Although brand equity doesn’t equate to a dollar figure that a company can claim, it instead translates to increased sales because consumers associate greater value with brand equity. A company builds brand equity over time through known associates, positive experiences, and demonstrated value. An excellent example is sports drinks like Gatorade. Its positive association with professional sports teams is a massive market in which consumers see stronger value than a generic brand.

Brand loyalty

Brand loyalty is a powerful relationship between a consumer and a brand where the consumer recognizes the value in other brands but wouldn’t think of diverting from their loyal products. Brand management strategies fail when consumers easily change brands. Companies achieve brand loyalty over time. They earn it by meeting their customers’ needs and giving them a positive experience throughout the product’s entire life.

Read more: Word of Mouth Marketing

Benefits of effective brand management

Many companies continue to see the advantages of effective brand management, including:

• Distinguished products: Regardless of the industry, you likely want to work toward standing out from the crowd. Distinguishing your product or service from the thousands of others on the market is a result of good brand management.

• Solid employee engagement: Include employees in your brand management culture so they can see the principles, values, and perceptions you want to invoke in your customers. Your overall strategy can work more seamlessly with the buy-in of your employees.

• Increased sales: In most cases, effective brand management that drives brand equity and loyalty also drives stronger sales. The more consumers who positively recognize or are tied to a brand, the more likely they’ll choose it over unfamiliar alternatives.

• Increased customer lifetime value (CLV): Brand management encourages stronger value over a customer’s lifespan. Customers with positive experiences are more likely to repeat purchases and buy other products in the same product line, forging strong brand loyalty. For example, if you like how Levi’s jeans look and fit, there’s a good chance you’ll enjoy some of the other clothing they offer.

• Leveraged pricing: Companies with solid reputations often have their brand management strategies linked to other products, allowing them to sell their goods at a premium. For example, Bic pens were so popular that the owner launched other disposable plastic products like lighters and razors.

• Market stability: The stronger your brand management is, the easier you can handle market downturns and inclement financial times. For example, many consumers who loyally buy Heinz Ketchup will likely never buy a cheaper, no-name brand, even in complex financial situations.

Challenges of brand management

Brand management also has its challenges:

• Loss of objectives: Sometimes, marketers can divert their attention and intentions from the initial goals of a business idea. Once you establish your brand and niche, marketers tend to try to venture into other areas to expand your brand but end up losing their initial focus, confusing your customers, and losing their trust.

• Unstable strategies: Organizations sometimes fail to recognize the proper medium for their brand marketing strategy. Regardless of if it’s through social media platforms or arranging webinars and seminars, their approach should revolve around who their target audience is and where they are.

• Lack of investment: Some companies don’t budget enough for advertising when starting a business. Marketing your brand can be an ongoing effort throughout the life of your company and its success. Determine your budget from the start and make necessary adjustments as your brand grows and you venture into other areas.

• Consistency: Inconsistent marketing promotions can confuse existing customers and be hit and miss with new ones. Stay consistent and fresh with marketing endeavours that preserve brand awareness and relevance among your target audience .

Brand management techniques

Brand management can appear complex, but several simple techniques can make it more manageable. The following are some of the more effective methods of brand management:

Establish branding basics

Brand management begins with the basics, like establishing your name, logo, target audience, and mission and vision statements. Although you create these conditions during the product or company’s infancy, your brand management team is responsible for refining these basic ideas as the company drives forward.

Create compelling stories

As consumers start using your company or product, your brand management team can strengthen the relationship between users and goods by capitalizing on emotional stories. User testimonials can help tap into the human connection of your brand.

Link your message

Brand messaging must be consistent across all forms of media so you don’t confuse your customers and potential customers. The more channels you market on, the more important it is to ensure your marketers cohesively link your message, whether through social media, radio, TV, websites, or print ads.

Consider branding language

Specific challenges can arise when different people manage different channels, especially when conveying messages through photos and printed advertisements. When your product lines are similar across the receiving channels, your brand management team must ensure that your tone and language remain consistent.

Establish internal rules

Align your company departments, especially your brand management and marketing teams, so they have the same rules and limitations. For example, a company’s internal rules may restrict the use of specific images, colours, fonts, designs, or words. Any request to deviate from these restrictions would require special permission from the brand management team.

Please note that none of the companies, institutions, or organizations mentioned in this article are affiliated with Indeed.