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Brand management: Difference between revisions
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'''Brand management''' is the application of [[marketing techniques]] to a specific [[ | '''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 its [[price value]]. | ||
Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with present and future purchases of the same product. This may increase sales by making a [[comparison shop|comparison with competing products]] more favorable. It may also enable the manufacturer to charge a [[price premium]]. The value of the brand - its [[brand equity]] is determined by the amount of profit it generates for the manufacturer. This results from a combination of increased sales and increased price. | Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with present and future purchases of the same product. This may increase sales by making a [[comparison shop|comparison with competing products]] more favorable. It may also enable the manufacturer to charge a [[price premium]]. The value of the brand - its [[brand equity]] is determined by the amount of profit it generates for the manufacturer. This results from a combination of increased sales and increased price. | ||
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*distinguish the product's [[positioning (marketing)|positioning]] relative to the competition | *distinguish the product's [[positioning (marketing)|positioning]] relative to the competition | ||
A '''premium brand''' typically costs more than other products. An '''economy brand''' is a brand [[target market|targeted]] to a high [[price elasticity of demand|price elasticity]] [[market segment]]. A '''fighting brand''' is a brand created specificlly 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 lining|product line]], this is referred to as '''Brand Leveraging'''. When large [[retailer|retailers]] buy products in bulk from manufacturers and put their own brand name on them, this is called [[private brand|private branding]]. 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 | A '''premium brand''' typically costs more than other products. An '''economy brand''' is a brand [[target market|targeted]] to a high [[price elasticity of demand|price elasticity]] [[market segment]]. A '''fighting brand''' is a brand created specificlly 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 lining|product line]], this is referred to as '''Brand Leveraging'''. | |||
When large [[retailer|retailers]] buy products in bulk from manufacturers and put their own brand name on them, this is called [[private brand|private branding]]. 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'''. | |||
There are several problems associated with setting objectives for a [[brand]] or [[product]] category. | There are several problems associated with setting objectives for a [[brand]] or [[product]] category. | ||
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*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 regards 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 cow's in mind (see [[B.C.G. Analysis]]). The brand manager also needs to know senior managements harvesting strategy. If corporate management intends to invest in brand equity and take a long term position in the market (ie. [[penetration pricing|penetration]] and growth stratergy), 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. | *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 regards 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 cow's in mind (see [[B.C.G. Analysis]]). The brand manager also needs to know senior managements harvesting strategy. If corporate management intends to invest in brand equity and take a long term position in the market (ie. [[penetration pricing|penetration]] and growth stratergy), 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. | ||
*Many brand managers 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. | *Many brand managers 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. | ||
<small>Portions copied from [[w:Brand management]] under clauses of [[GFDL]] on [[User:Juxo|Juxo]] 22:41, 9 Mar 2004 (EET)</small> | <small>Portions copied from [[w:Brand management]] under clauses of [[GFDL]] on [[User:Juxo|Juxo]] 22:41, 9 Mar 2004 (EET)</small> | ||