Contents
- What is brand management?
- Goals and objectives of brand management
- Components of brand management
- Recommendations for effective brand management
What is brand management?
Brand management is a strategic process aimed at managing the image and reputation of a brand. The main goal is to increase the brand's significance for the target audience, as well as to enhance its value. The introduction of the term "brand management" was proposed by Neil McElroy, a marketer at Procter & Gamble, who also initiated the creation of the new position of "brand manager." Procter & Gamble currently holds a leading position in the consumer goods market, offering a wide range of products that are well-known and in demand worldwide.
It is important to understand the difference between the terms "brand management" and "branding." Branding is just one of the components of brand management that shapes consumer perceptions and associations related to a specific brand. While brand management encompasses broader aspects, including reputation management, customer loyalty, and interaction with potential consumers and partners.
Goals and objectives of brand management
The overarching goal of brand management is to help the company increase its profits. However, in addition to this, there are many specific tasks that need to be addressed:
- Communicate the brand's benefits to the target audience;
- Attract new customers and retain existing ones;
- Build trustful relationships with consumers;
- Increase loyalty and commitment to the brand;
- Promote new products;
- Maintain a positive image of the company and its recognition.
Creating a brand is just the beginning, and maintaining its positive image requires effective management. Even well-known companies sometimes need to restore a tarnished reputation. An example is the incident with the H&M brand, which faced criticism after posting a photo on its site featuring a dark-skinned boy in a hoodie with an offensive slogan. This provoked a negative reaction from the audience, and the company was forced to apologize and remove the content.
Components of brand management
Brand management includes four key aspects:
- Brand awareness. This is the level of consumer awareness about the company and its products. Knowledge of the brand name and association with the logo or packaging play a crucial role in consumer choice.
- Brand loyalty. This is the commitment of customers to a specific brand. Loyal customers are less susceptible to competitor offers and may ignore price changes.
- Company reputation. This is the overall opinion about the brand, shaped through interactions with customers, advertising, and social media. Reputation can be difficult to control.
- Brand value. This is the financial assessment of brand assets, including reputation and audience loyalty, which in turn affects the company's profits.
Recommendations for effective brand management
Brand management is a multi-step process that requires a systematic approach, consistency, and customer orientation. Here are some recommendations for effective brand management:
- Create a unique brand strategy. The long-term plan should include positioning, mission, and important brand values.
- Consider all customer touchpoints. Identify through which channels and tools you will achieve your goals.
- Maintain a consistent brand style. This will help create recognition and strengthen the connection with the audience.
- Engage employees. The team should share the company's ideas and values, which will assist in promoting the brand.
- Keep an eye on trends. Adapt your strategy according to market changes and customer needs.
These recommendations will help you effectively manage your brand, maintain its reputation, and increase customer loyalty, which, in turn, will lead to increased profits for your company.