Brand management has everything to do with the Fortune 500 multinational company, Procter & Gamble. Who would've known that the then small-time company, started in 1837, would change the world's marketing strategies for good. Yes, with the McElroy Memo in 1931, they popularized this marketing concept, and the world cannot thank them enough.
The Concept of a Brand
According to the Dictionary of Business and Management, a brand is 'a name, sign, or symbol used to identify items or services of the seller(s) and to differentiate them from the goods of competitors.' From this definition, we understand it as something that will help a customer to identify one product from another.
An anonymous person once said that 'a brand is a collection of perceptions in the mind of the consumer.' This is so true, because from this we know that all products are not brands. It also helps understand the fact that it is a person's perception of a product or service.
A good brand should have certain characteristics which include:
- Ability to be legally protected
- Captures attention
- Reflects the image of the company
- Can be differentiated from competition
Understanding Brand Management
This is a process used in marketing; in fact, it comes under one of the 4Ps of the marketing mix. It states that the brands have to be managed individually, so as to create a positive image around them and the company in the minds of the customers. This is a difficult task and one that has to be handled delicately.
The other purpose is to build customer loyalty by means of creating an emotional bond between them and the brand itself.
Be aware of other brands
One idea is to use sub-brands, while this is good, you do not want to confuse the customer with too many of them under one name. One brand of the business should not eat into the image of another.
Do not be sidelined by profits
Most companies work in a manner where they employ different product managers, who have to work on a target basis. It is important for them to make profits, but brand managers have to be careful, so as to not get sidelined by the money and compromise the brand image.
Understanding how this works is very important, especially if you're making a career in marketing.