Brand Management

Brand management is multifaceted, complicated and complex, but it is important to start with the basics. Brands exist in the subconscious of everyone who uses or experiences them: employees, investors, the media and, perhaps most importantly, users. In this chapter we will explore basic misconceptions about brands; brands and branding are not just in the minds of consumers, nor are they just products and they are more than logos. We will discuss the brand, branding and brand management concepts. These are terms that can be confusing and easily misconstrued. We will also look at key stakeholders in the brand management process: the brand owners, users, managers, influencers and valuers. Different branding ownership calls for a different branding approach. For example, a charity organisation has branding needs that differ from a global brand. We will conclude this chapter with what you can expect as a prospective brand manager, what you can do with the knowledge you acquire and the opportunities for career progression.

Doing business the right way is important but often the question is: What is right? Ethics is not something that should be left and just considered as an afterthought. Ethical actions should be integral, inherent and intentional. It should be fully integrated into the activities of the brand. This chapter will focus more on business ethics, which cover ethical branding, and less on consumption ethics, which explain how consumers engage with products based on their ethical values. This chapter further explores what ethical branding is and what are the ethics of brands, and some misconceptions will also be addressed. We will look at the key considerations of ethical branding and see how the importance brands place on being ethical in their activities is a justification for doing what is right, even though it might be expensive. This then leads to the exploration of the challenges brands may face as they aspire to be more ethical. Importantly, this chapter will consider how to go about ethical branding, recognising that it is a long-term strategy.

This chapter explores brand values which are the guiding principles of a brand. They provide the strategic direction that staff must follow. This chapter will build on the brand ethics that were previously discussed and describe the concept of brand philosophy. The basic components of brand philosophy will also be discussed—core values, mission and vision statement of the brand, which serve as a promise and set the brand apart from others. We will look at who develops it, when it is developed and how it is developed. It is important to recognise as well that brand philosophy is industry-specific, and therefore, it should be interpreted in that context; however, there are basic features which all brand philosophies should have. These will be relevant for a brand manager working on a new brand or on an existing brand. Finally, we will look at the benefits and various examples of brand philosophy.

The perception of a brand is in the minds of the consumers. This perception may make them associate innovation with a brand, and likewise, they could associate poor service with a brand. Brands will have to keep their standards and improve on innovative product development and quality service provision to convince the consumers about their positions. Brands may be placed on pedestals by consumers, but if these same brands do not do well, they will be replaced. This chapter will explore the basic concepts of brand positioning and how it can be conceptualised. We emphasise the importance of brand positioning, in order to justify the creative, hard work required for this. While recognising that brand positioning can change as consumer engagement increases or decreases, we will explore ways to enhance a brand’s position in the minds of customers. The brand owners and brand users are the responsible stakeholders for brand positioning—the brand adopts brand position strategies while consumers engage with those strategies. We will conclude with some key considerations for brand positioning.

Brand identity is one of the most exciting components of brand management, and it presents physical elements that consumers can recognise as they engage with a brand. This component moves beyond the brand philosophy, values and positioning, which can be deemed as abstract. The identity is real, and it has become an integral part of brand management. Brands spend a considerable amount of money to develop an identity for their brand to appeal to a diverse audience and make them stand out. Brand must maintain a positive identity. This investment by brands and consumers’ interest further highlight the value of brand identities. The brand owners know consumers want to identify a brand; the brand recognises the need to be different and still be recognisable. It is, however, essential to note that brand identity is more than just a logo, though the logo usually grabs the attention. This chapter presents a holistic insight into brand identity, presenting it as elements that can be experienced through five human senses.

Having a brand identity is not enough. The beautiful logo is not the end of brand management. Brands need to make sure that their brands are well integrated and seen by the target audience. This chapter explores brand integration, which is a continuous process to bring the brand to the conscious knowledge of the key stakeholders. In some cases, it might be described as a brand advertisement or integrated marketing communications, but the focus is not always to sell and market but to bring awareness to the consumers and stakeholders. We will look at some key reasons why brands may not have been well integrated, perhaps due to the location or structure of the brands. We will also discuss the benefits of brand integration with ten key strategies to aid this integration so you can enjoy the benefits. Here we go beyond advertisement to include staff and corporate responsibilities. No doubt brand integration is an important task which can be time-consuming and requires a considerable amount of effort. This chapter identifies those who are responsible for the integration, those who are the targets for integration and, importantly, the key considerations for integration.

Digital channels and assets are becoming an integral part of business practices and brands need to use them effectively to communicate and position their brands. Being digital requires being open to re-examining your entire way of doing business. It is essential to recognise that the basic principles of brand management are still relevant, but the presence of digital innovation is shaping how these brands are managed. In this chapter we will explore brand management in the context of the digital age and look at how digital innovation is disrupting the meaning of a brand. We will also examine consumer behaviour, especially how they engage with brands. In conclusion, there are some key brand management strategies for brands in this digital age. The technology is available; brand owners just need to harness these technologies to reposition and develop their brands.

Brands need to be built and managed to ensure their long-term sustainability. There are ongoing activities to innovate, build trust in the brand, integrate identities and effectively communicate with stakeholders. This built-up brand becomes valuable and a large part of the intangible assets of a company. Understanding the worth and value of this intangible offer is essential, at least from a management point of view, to justify and evaluate the investment in building and developing the brand. The economic consequences of brand management can be difficult to establish, suggesting the need for a quantitative and rigorous approach towards brand evaluation. Building on previous concepts of branding, in this chapter we explore the concept of brand equity and its importance for brands, brand managers and other stakeholders. In addition, we will look at four different brand valuation models, and the impact of different methodologies and market and economic research on the inconsistencies across these models. We will conclude with key considerations for brand equity, especially as it relates to brand managers of charities and smaller brands.

A brand that has acquired goodwill from consumers, that has been being around for many years and is innovative with their product development and service quality may decide to extend their brand. The brand can build on their existing name or come up with a new brand name to make different or related products and enter a new market. This extension is a strategic decision that should not be taken lightly, as there are financial and human resources implications. The new product line will have to be developed, branded and marketed. In this chapter we look at how brands can use the leverage of a well-known brand name in one category to launch a new product in the same or different category. Identifying the potential for leveraging is also essential for brand managers. It is essential to know when to take the leap and commit to a financial decision. In addition, we will explore different types of extension, and the advantages and disadvantages of extensions. While brand extension may be a worthwhile business decision, we will examine some critical considerations for brand managers.

To grow the brand, beat the competition and gain more market share, brands may decide to acquire or merge with a competitor brand. In some cases as well, when a brand is no longer profitable, they may be acquired by a bigger and more established brand. The management of this process is critical, as it can influence the success of the merger or acquisition. Brand mergers and acquisitions create multiple brand entities, which are uniquely positioned and directed at a segment. This strategic decision brings the possibility of growth, but can mean streamlining the brand portfolio, reducing the number of brands and making the portfolio more manageable. In this chapter we will explore branding from a holistic perspective, with a focus on brand management. As many brands come together, through merger or acquisition, there is a need to manage these brands and integrate them accordingly. Mergers come with operational and financial challenges, but our focus here is the business challenges. To understand the motivation for mergers, understand the challenges and discuss how to deal with them.

Brand extension, mergers and acquisitions extend the product line of a brand. There are many brands now operating under a big brand umbrella. It is now essential for the brand manager to arrange new brands and structure them for effective administration and control. This may involve employing more people, perhaps different brand managers for each product line. In this chapter we will explore these arrangements with master brands and sub-brands, to understand their architecture and use different case studies and examples to illustrate the different types of brand architecture that are available. Importantly, we will look at the essence of having a brand identity. Even though brand architecture may be more relevant for established brands, this knowledge will be essential for emerging smaller brands which are considering brand extension and acquisitions, to help them plan and identify how they want to structure their sub-brands.

The business environment is changing, and likewise, consumer behaviours are changing. Brands are becoming aware of the consumers’ power to shape the brand through engagement. It has, therefore, become critical for brands to be aware of the contemporary issues around brand management, especially the prospects of social media, sustainable consumption and ethical practices. To manage these issues, there is a growing demand for a Chief Brand Officer (CBO), someone with the overall responsibility of managing the brand, someone who oversees the ethical collection of data about their customer base and prospective customers, a crisis manager who understands the implications of online brand mentions and many other metrics, someone who can take responsibility and think on the spot. In this chapter we discuss how these contemporary issues can be relative, depending on the brand, the market, the customer base and even the country; however, to streamline our discussion, we have identified key stakeholders and the various relationships which shape these issues.