Brand management is consciously providing a product with an identity that is understood on all levels. This means both internally and externally and includes customers, employees, suppliers, and vendors. Understanding the niche in which the product resides gives it a relevant differentiated benefit (RDB). This translates into the purchase of that product over that of a competitor.
As a brand, the game is one of being defined or being self-defined. Good examples of this are eBay with its reputation for system failures/outages and Amazon.com with its reputation for being the bookseller of choice online. On the one hand, eBay is being defined by its inability to guarantee 24-7 performance to its users. Rather than basking in the celebrity status as the first online auction site, it is blinded by the limelight of adverse publicity for system failures. On the other hand, Amazon.com took its first mover web site advantage and leveraged its presence to include selling additional goods besides books. Each represents a very different branding story.
Good branding begins with knowing what makes the product special and exploiting its advantages. Branding may be for a specific product or could cover an entire corporate image. As an example, Bavarian Motor Works (BMW) is known as the "ultimate driving machine." This rallying cry applies to all its products to include automobiles, motorcycles, and sport utility vehicles. BMW's communication strategy and brand equity comes with its message about speed, driving, and handling. Similarly at General Motors (GM), products do not merely have a single brand identity. GM has multiple products and uses multiple venues for their individual products. Its automobile selection ranges from Corvettes to Cadillacs. As an example, Cadillac's branding message extols the virtues of art and science. Cadillac showcases proactive safety features; precision all weather controls; and infotainment luxuries such as Onstar, the in-vehicle safety, security and information service that uses Global Positioning System (GPS) satellite technology and wireless communication to link the driver and vehicle to 24-hour real-time, person-to-person help. However, GM stands for one thing and has an identifiable rallying cry.
Branding is a cyclic process with three elements. First, there is the brand reality. This consists of the product's identity, its differentiating features, and its niche. It is the "What I am" about the product. Second, the brand reality gets exposure from communications. This comes in many venues to include the media, advertising, public relations, and training. Every communications outlet/forum should consistently communicate the same message about the product. Third, product development follows and considers the future. Product development is built upon year after year and is predicated on brand identity. It is difficult to alter what the public perception of a product is, so changing image can happen only incrementally with smart communications.
Solid ideas equal progress. Be a constant advocate for defining and reinforcing brand management (image). Select and communicate no more than three messages. Then prove them, teach them, reward them and love them. Most importantly, make certain the message is the "right" thing and goes into all the communication about the product or company.
Brand management is the philosophy and core behind all business development. The rallying cry defines and makes for both an internal and external image/presence. Constantly refining the rallying cry is part of brand management. Branding is the arena that puts the "big picture" perspective into focus and determines where the company takes and makes its future.
The other day I over-heard a conversation generally referred as cooler moment. John was in conversation with Terry around lunch time. John said he was hungry but had to take a quick meal as he was expecting to run a business call. Terry gave alternative of burger as quick and easy meal, to which John said “McDonalds”. Above conversation could be part of anyone’s life and but very important to understand Strategic Brand Management. Here in the conversation need or want is for a “quick meal”, available generic product “Burger” and brand choice “McDonalds”. What made “McDonalds” pop up in John’s mind as a choice for quick meal burger? Answer to this question lies within framework of strategic brand management. We will explore each word “Strategic”, “Brand” and “Management” and come up to conclusion where in John’s answer is understood.
Brand does not carry a definite and absolute definition but it is relative. Some observers would term products or services characteristics, which differentiate it from competitors as brand, where as some would consider standing of one’s product or services in market as brand. In all these, value of product or service for what it stands and attributes which identifies them can be considered as brand.
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Branding or Brand is considered important not only for companies but they carry equal importance for customers or consumers also. From consumer or customer point of view, brand becomes important for various reason let us explore some of them. Brand for a customer will indicate commitment towards quality from sellers there by reducing time spent in coming to a purchase decision. Brand for companies will indicate a sort of benchmark in quality as well as customer expectation, a point of differentiation from competitors and a steady stream of profit.
Normally we associate branding from point of view common mass; and products or service displayed in malls and supermarket. However there exists another market where branding is equally important and that is business to business market. This is referred as corporate branding, which is again a challenge as decision making process for purchase order is way different compare to individual. Here survival of organization as well as individual will be at stake. The key lies in developing a brand for corporation where in which other business can be confident of.
Modern globalized, technology driven world has thrown new challenges to branding. Customers/consumers have more access to information than ever before. Internet has become a strong tool through which product information proliferate raising expectation bar for companies. Companies have responded to this challenge by improvising in the way they run their marketing campaigns, by exploring new avenues to showcase their products. Like for example; sponsorship of events and teams or association with social cause.
In a given market innumerable products and services are offered by different companies. The identity developed for this product and services over a period of time, through marketing strategies, sturdy performance etc is referred to as brand. A stage is reached where brand become synonymous with product e.g. - coffee-Starbucks, donut-Dunkin Donuts, online retail-Ebay etc. This process is called strategic brand management.
The strategic management process means defining the organization’s strategy. It is also defined as the process by which managers make a choice of a set of strategies for the organization that will enable it to achieve better performance. Strategic management is a continuous process that appraises the business and industries in which the organization is involved; appraises it’s competitors; and fixes goals to meet all the present and future competitor’s and then reassesses each strategy.