What is brand management? Methods of brand management

Brand management is a set of marketing techniques,which apply to a particular brand, product or service in order to increase the importance in the perception of end users and the target audience. From the definition it is clear that this is a complex and diverse process, since there are a huge number of different products and services in a market economy.

Objectives

Brand management sets a goalincrease the value of a brand. In this case, the value is the benefit that the producer receives. It should be noted that such concepts as brand management, marketing and PR are different things. In the first case, managers make financial statements and keep accounts, as the effectiveness of their work is calculated in material terms. In the second case, the budget for marketing tasks is allocated at the very end of the business plan, to the actual "balances". This same principle often applies to PR. Accordingly, unlike PR and marketing, brand management plays an important strategic role in the work of the entire organization.

History and development

The term "brand management" appeared in 1930in a memo from Procter and Gamble advertising officer Neil McElroy. He proposed the introduction of a new post called "brand-men" and formulated job duties. Neil McElroy successfully implemented all his ideas, then he headed the company itself, and later - also the Ministry of Defense of the United States of America.

Ratings

To date, this concept has firmlystructure of market economy and corporate culture. Many consulting firms and magazines often publish various ratings of the most valuable and best brands. These classifications are designed to reflect the most objective value on the rank of the companies represented, which is largely based on the value of the brand itself. As numerous studies show, large and strong brands can always provide greater comfort and a much higher return to their shareholders than highly specialized and weak ones.

Classification of brands

Brand management at the present stageis not even an instrument, but a whole science. That is why a certain typification of brands is necessary. As a result, a lot of models of brand management appeared. Consider these:

• Premium-class brands are brands whose product price is significantly higher than the average price for a particular product category.
• Economy class is aimed at the broadest masses of buyers, has a large price range.
• "Fighter" is a brand that can be claimed with minimal advertising and marketing costs. It is created if necessary to ensure competition with private cheap brands.
• Private brands (they are also "white brands") are brands of retail trade.
• Family - similar in the category of the same product (for example, toothpaste and brushes).
• The expansion of brand marketing is the use of an already known brand to bring to the wide market some new products or a whole line of goods and services.
• License - a document confirming the act of transferring rights to another manufacturer to use an existing brand.
• Joint branding - combining the marketing efforts of several manufacturers.
• Corporate - the company name is the brand itself.
• Employer brand - creating the image of the company in the vision of potential customers, colleagues and employees.
• Strategic brand management - the most global and long-term methods of planning marketing steps, usually in service with large holdings and corporations.

Architecture

There are three main types of brand structure of the company. They are also known as brand management techniques.

1. Several brands are connected to a system thatreferred to as architecture. Each individual brand has its own name, style and image, but the foundation company itself is invisible to the average person. As an example, the company Procter and Gamble, which is the ancestor of this concept. She spawned many strong and big brands such as Pampers, Pantene, Ivory, Tide.
2. Affiliated brands are developing and moving in the overall context of the parent. This approach significantly saves the marketing budget. As an example, the MTS and Stream.
3. The latter architecture method usesonly the brand is maternal, and all other products have its name in the name and use similar styles and images. A striking example of this direction is the company Virgin with its subsidiary brands, such as Virgin Atlantic, Virgin Megastore, Virgin Brides. They have the same logo and style, they are supported by each other and similarly advertised.

The importance of choosing the name and technology of promotion

Quality brand management must be basedon the name of the company. It should be easy to pronounce, eye-catching, melodic, memorable. The name must contain a mention of any positive qualities of the service or product, reflect the image and mission of the company, positively position the product, stand out brightly among many other products. Common technologies include rationalization, orientation, and rebranding.

Rationalization is a reduction in the numbertrademarks, as their set over time may exceed the permissible marketing power of the company. Rebranding is a brand change, but with preservation of some basic data. This technology is very risky, but in the future it allows to keep old customers and attract new ones. Orientation - creating a symbolic value of the goods. This means that the characteristics of the product themselves are no longer decisive and the main arguments of the buyers - the brand itself came to the fore. Product life cycles have become very short in today's free and competitive market. And the appearance of cheaper analog products and substitutes jeopardizes the existence of popular products. Hence the need to focus not only on the characteristics of the product, but rather on marketing and the brand. That is, the orientation goes to the end user.